Microloan Program Awaits Approval from City Council
COLUMBIA - The Columbia City Council will vote Monday evening to approve a business microloan program for low- to moderate-income applicants. If approved, the city will provide $50,000 from general revenue surpluses to the program, administered by Central Missouri Community Action's Boone County location.
The ordinance states applicants for a microloan must be residents of Columbia, and their business must be located within city limits. It defines a "low- to moderate-income" applicant as someone who lives at 80 percent or below the median household income of those around them. CMCA provides a repayment schedule on those loans. The ordinance also requires CMCA to provide "educational and capacity building assistance from qualified organizations and follow-up technical assistance to loan receipts." Any income made from loan repayments are retained by CMCA to make other microloans under the same conditions.
This is one of the six projects the city council approved to fund in June with the $1.9 million budget surplus from 2012.
CMCA must lend 50 percent of funds received from the city by March 31, 2014, and use all of the funds by September 30, 2014.
The Columbia City Council will meet at 7 p.m. at City Hall.