Minutes 05/12/1998 - Laserfiche WebLink

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50 TUESDAY, MAY 12, 1998 Council next considered approval of an appropriation of $10,000 from the General Fund Unexpended Fund Balance to fund a request from the Martinsville Office of the Longwood College Small Business Development Center. Mr. Reynolds noted that the City had participated in the creation of the Small Business Development Center in FY 96-97, and that although continued funding for this operation had been approved in the FY 97- 98 Budget the necessary appropriation for that purpose had been inadvertently omitted. Mr. Ken Copeland, Executive Director of the SBDC, was present for this item and took the opportunity to bring Council up to date on the activities of his organization. He stated that they had had 104 long term contacts in FY 96-97, with 26 actual businesses participating in their services, and that the SBDC had assisted these clients in securing almost $600,000 in capital funds, making for a good first year of operations. Mr. Copeland went on to state that from January 1, 1998 to May 12, 1998 they had had even more client contacts than in FY 96-97, and that their success stories included assisting a business adversely affected by NAFTA achieve $540,000 in refinancing of debt, and helped another local business get out from under a difficult debt arrangement and add 7 new jobs. Council Member Haskell asked whether there were any new business prospects being assisted, and Mr. Copeland replied that there were about 10 in the system now and that one was a potential retail venture seeking to locate on Church Street in Uptown. Council Member Dallas asked what minimum number of employees a business must have to qualify for the SBDC's services, and was told that there was no minimum. Council Member Haskell then asked what the SBDC' s budget was for the coming year, and was told that the SBDC received $50,000 in State funds which required a 50% local match in cash or in-kind contribution. Mr. Copeland stated that the local match currently consisted of $10,000 each from Martinsville and Henry County, and $5,000 from Patrick and Franklin Counties combined. He went on to say that better than 50% of all client contacts were from Martinsville and Henry County, and characterized the SBDC' s mission as that of helping small businesses raise capital. Mr. Copeland said that two thirds of the $1.3 million in capital raised in FY 96-97 had been applied in Martinsville and Henry County. Vice-Mayor ~r:.~tree asked how many jobs had been created as a result of the SBDC' s efforts, and was told that although no figures were