EDC setting up micro loan fund

Business owners needing a modest loan might be able to turn to another source next year if a micro loan fund is established.

Dan Murphy, the executive director of the Highlands County Economic Development Commission, told the board of directors during Wednesday's meeting that an application is being prepared to the Small Business Administration for $750,000 to set up a micro loan fund.

An applicant may be able to borrow up to $35,000. Murphy said the average loan is $10,000.

Murphy said a $150,000 match is required as a loan loss provision in case of defaults. He noted that he has contacted officials in Hardee and DeSoto counties to gauge their interest in sharing the cost and make it a three-county fund. The underwriter is Florida First Capital Finance Corp.

The interest rate will be market rate, according to Murphy.

Murphy is hoping the fund could be in place in early 2011.

In other business, the board voted 8-0 to oppose Amendment 4, which is on the ballot for the general election.

The ballot summary of Amendment 4 said: "Establishes that before a local government may adopt a new comprehensive land use plan, or amend a comprehensive land use plan, the proposed plan or amendment shall be subject to vote of the electors of the local government by referendum, following preparation by the local planning agency, consideration by the governing body and notice."

"It's expensive and it's time consuming," Murphy said. "It's a tremendous administrative burden on developers."

Murphy said what is most worrisome is the potential for litigation.

"It's open to challenge," he said.

Murphy believes development in rural areas could be significantly impacted. He said a developer with a legitimate project already has to go through a lengthy process that can take at least 18 months.

According to Florida Hometown Democracy, Amendment 4 is a grass-roots, non-partisan citizens' initiative organized to put the amendment on the Nov. 2 ballot. It would give voters the final say over large-scale development projects that want to change a community's comprehensive land-use plan.

Bill Youngman, who attended the EDC meeting at the Holiday Inn Express in Lake Placid, said he favors the amendment because it will "give people a veto right."

Youngman said he doesn't think he has a say now if a big development is planned. But he might if hometown democracy is adopted.

Murphy reported that two tenants have moved into the business incubator on Main Street in Avon Park. The Small Business Development Center at the University of South Florida is planning to assist with counseling and training for the tenants.

The EDC's annual banquet will be held Oct. 28 at the Kenilworth Lodge in Sebring.