Usually, local governments handle things like law enforcement, providing social services and maintaining parks for the community; however, Guilford County government is now getting into a completely new business – banking – thanks to a proposal from the county’s Minority- and Women-Owned Business Enterprise Department (MWBE Department).
The move will enter the county into providing an entirely new service – loan guarantees for businesses that otherwise wouldn’t be able to borrow enough to buy the machinery or to hire the workers to take on a Guilford County project.
The idea is that one of the barriers for some MWBE companies getting contracts with Guilford County is that those often smaller, historically underutilized companies are unable to gain access to the capital needed to take on certain projects.
The commissioners discussed and endorsed the program in a Tuesday, June 11 work session and instructed county staff to work out the details and bring the contract back to them for approval.
The program will take $400,000 in taxpayer money and set it aside to back loans to businesses that otherwise would not be able to get loans.
The county is also planning on spending $150,000 to administer the program for three years.
MWBE Department Director Shaunne Thomas explained the program to the county commissioners at the June 11 work session. The program stems from the recommendations of a 2023 $300,000 Diversity Study the county conducted, which found that the county needed “to invest in more targeted outreach” for MWBE companies.
“It was very clear from the people that were surveyed, that the capital access was truly a barrier to competing in contracts,” Thomas told the board.
Other information from federal and state studies, she said, also show that “capital access is the number one barrier for our small minority owned business to doing business with municipalities.”
The loans will come from Community Development Financial Institutions – also known as CDFI’s – with those loans backed by Guilford County government.
“Eligible companies can request a loan guarantee against the $400,000 that we have in Guilford,” Thomas said. “After they are turned down by a bank, we are saying send them to us.”
“The good news is that the CDFI funds the loan,” Thomas told the board at the work session. “They loan to the applicants, while we would actually guarantee the loan. We only actually lose that money as a county if one of the applicants did not pay the loan back.”
Thomas said this allows applicants to procure equipment or personnel – things that they would need to handle the contract.
“And everybody’s happy,” she said.
“Our goal is to get the firms to a point where they can apply for loans through regular banks, so helping them build a credit, helping them understand the benefits of repaying – and it makes them attractive at the end of the day to other firms,” she said.
The county commissioners liked the idea and consented to approve the plan in substance and directed staff to draw up drawn the contract.
Commissioner Carly Cooke said, “I’m really excited about it.”
Thomas said that, if a company is about to default, representatives of the CDFI would sit down with company leaders and “through education” make sure they understand why it is in their best interest to pay back that loan.
If the company defaults, the county’s $400,000 fund would decline by that amount.
Here’s a description from the county of the initial plan, which staff is now tweaking “The Guilford County MWBE Department in partnership with Carolina Small Business Development Fund, selected through a Request for Proposal process, will offer a loan guarantee program to provide access loans ranging from $25,000 to $75,000. Prime contractors or subcontractors eligible for the Capital Access program must be certified as a North Carolina Historically Underutilized Business with a business in the Guilford County relevant market and have a new contract or subcontract with Guilford County. Guilford County contracts or subcontracts will serve as collateral for approved working capital loans. Working capital loans may be used for assistance with mobilization, equipment purchases, and the addition of workforce needed.”
One conclusion found in the county’s 2003 diversity study non-MWBE businesses, as compared to non-MWBEs: African American and Native Americans see more loan denials from banks and other lending institutions.
The same study also found that acquiring commercial financing was a big barrier especially for African American firms.
Under the new program, MWBE Department would help with the ability create “a capital access program” for Guilford County certified and MWBEs, which otherwise might have to pass on a project because they can’t afford the cost of entry.
The county cannot loan money to a private company; however, this seems to be a legal way around that rule. Durham County has done something similar and it appears to stand up to legal scrutiny.
Chairman of the Guilford County Board of Commissioners Skip Alston said, “We don’t have to reinvent the wheel if Durham County has already done it.”
$50,000 annually for 3 years to fund a $400,000 program? That does not compute. But wait, $300,000 already spent to study the issue. So, $450,000 to maybe lend $400,000, more if any defaults. Where did I misread the article.
The above is defined as grand larceny.
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Maybe they can’t get loans because their credit is crap.
So when they stick it to the lender, now that lender is us – the taxpayer – instead of the banks who had more sense than to lend to deadbeats.
It’s obviously just another wealth transfer from whites to non-whites.
LMAO….”and everybody’s happy.” Loaning tax payer money to folks who can’t qualify for a loan. Ain’t EDI great? Even better, citizens continue to elect these clowns. Has anybody figured out how much a vote cost?
Un freaking believable.
This sounds like the federal government getting into college loans. I’m guessing after several years none of these loans will be repaid and the $400,000 will grow to a million dollars and the tax payer citizens of Guildford County will get stuck with the bill. Running a business takes a lot more knowledge and know how than just getting a loan. I’m betting the reason these businesses aren’t getting loans from banks is not because of the color of their skin. That would be discrimination and grounds to sue and get 5 times more money.
This sounds like back handed reparations! $450,00 to execute $400,000 in loans to minority businesses that can’t qualify for the loans via normal process. Time to consider another County of residence.
Buh Bye!! And make sure you list your house above market value don’t want you hurting our thriving real estate market
The “thriving” real estate market is getting ready to crash, thank goodness. Houses are overpriced everywhere. When a sector of the economy becomes overvalued, a correction will come. The people who will benefit from the correction are first-time buyers and low-income buyers. Your comment about pricing a home “above market value” makes my point.
Let’s just call it what it is skips reparations bank. Just like the newly created 8 all black mwbe department that was added last year.
All excellent, well thought out reasons Dave.
The only problem is the Board of Commissioners, or at least the majority, don’t care. They are just looking for the votes this action buys for them.
Correct!
The reason they’re getting declined for loans is because their credit is bad, and their credit is bad because they don’t pay back their loans.
So if they borrow a million Dollars from you and swear and promise they’ll pay it back with interest, you’ll be lucky if you get a single Dollar repaid.
There is an entire industry that’s based on predicting whether a person will be honest and honorable, or lying and corrupt, and will cheat you. They are good at what they do.
What is the legal mechanism that they are utilizing? Durham does it!!…so should we!!!
There are many reasons this is a terrible waste of money but it is par for the course with freewheeling chairman Skip.
Looks like skip will have his tax team figuring out the next increase to cover the defaults.
This is pure discrimination. Nothing, nothing will change in Guilford County until new commissioners are elected. Skip Alston is a lost cause. He will forever be looking for the white bogyman. It is up to districts to elect commissioners who will boldly face Skip Alston. Skippy’s latest yes-man is Brandon Gray, District 6. His term is up this year, 2024. If he is on the ballot in November and voters in District 6 are sick of what is happening in Guilford County, do not vote for Brandon Gray. Hopefully, Republicans can find a strong candidate for District 6.
You’re better off moving what would that one voice get you? 8-1 votes this is our county Randolph has plenty of room for you and Your ballot and Chain.
That one vote will speak volumes. One vote can speak to the voters and tell the truth about Skip Alston and the other commissioners. Skip Alston is clever; I will agree with that; but so is a snake. And who is “our?”
Big city have you ever heard the term
“Reckoning “ well it’s coming, so get ready for the ride.
“…this is our county”?
— This is our country.
The Republican District 6 challenger to Brandon Gray is Maritza Gomez. Check her out. Conservative through and through.
Conservative? The question is strong leadership with cojones. A polite, agreeable politician is not what is needed. Does she fit the bill?
If the commissioner’s had voted to lend their own money to these businesses, I might could get behind that…
Okay so they have now found a way to steal more money from the taxpayers to back minority businesses. Where can a non-monority business get the support that is given to minorities. The answer is the bank with good credit which is something that is not needed for this group for some reason. Why don’t they just start throwing cash out in the street downtown because it’s the same thing. Once again the taxpayers are left holding the bag for this stupidness.
Do you know what MWBE stands for? It’s not just a single race. White women (who disproportionally benefit from DEI initiatives) can get the loan guarantee as well. MWBE’s are historically marginalized groups that have been systematically denied access for centuries.
Our county budget was over $800 million. To say that $400K in a loan guarantee program (you may need to look up what that is), that will be used over the course of multiple years (at least 5) to support companies who may not be able to access capital for various reasons (most companies can’t get a loan if they have been in business less than 2 years), to say that is a lot of money, is just selfish and shows your lack of understanding. This is a nuanced topic that requires a higher level of thinking. I encourage you to educate yourself.
Also, they are using a CDFI (Community Development Financial Institution). These organizations typically help all people get equal access to capital. Contrary to the beliefs of the people on this page, getting a business loan can be harder than just applying, for ALL races.
Amanda just curious, how long have you worked in the mwbe office.
Your comment displays clear evidence of a bleeding-heart liberal. Accusing those who do not agree with you as being selfish and uneducated is an age-old way of shutting down debate. Name-calling with disparaging words no longer works. The MWBE discriminates using taxpayer money. Including White women does not make the MWBE program non-discriminatory. I would suggest a higher level of thinking on your part.
******
I know what MWBE stands for:
M ake W hite B oys E xit.
It is pure institutionalized racial and sex discrimination. I thought we were against that..?
Please, everyone, one important thing you must keep in mind…these are ELECTED REPRESENTATIVES!!!
These are people who hold their position by the grace of Guilford County citizens who went out and selected these people.
OUR tax dollars (or should it be called political payoff with OUR money) are going to be given to groups of people, some of whom are legitimate businesses, not because of what services they could provide but because of they are MWBE. Why not write into any contract a requirement that a select, reasonable number of subcontractors be MWBE. Let the onus be on the contractor, not the tax payer.
The single biggest problem with this sham is when, not if but when, these “businesses” default on these loans, it’s Guilford County taxpayers who take it in the fourth point of contact. Can you say “tax increase”? I knew you could.
Given their track record, do you really want the Board of Commissioners playing this kind of game with YOUR money?
The problem with electing county commissioners is district voting. There are voters in certain districts that will keep voting for the same candidates over and over regardless. The same is true of the Board of Education members. Dena Hayes has nothing to worry about. Her people will continue to vote for her. That is why term limits are needed. No more Skip Alston, Dena Hayes and grandmother, Kay Cashion.
That sounds great, but after 27 years as a commercial subcontractor, I must disagree. The original idea of MWBE was to ensure that MWBE contractors got an equal chance in the competitive bid process. Which, I am all for. The contract is still supposed to go to the lowest responsible bidder and if that was MWBE fine…..if they were not MWBE fine. It has now morphed from a guarantee of a fair and equal chance at a piece of the pie, to a guarantee of a certain percentage amount of the pie fair or not. The big problem is that the weight of that requirement almost always falls on a relatively small group of trades with the lowest barrier to entry. I was in one of those trades, and when business in the private sector is plentiful, why would I waste my time bidding on Guilford County or Greensboro projects? Because, even if I am the lowest, responsible bidder in a fair equal process, there is a good chance I will get shuffled out of the contract to achieve MWBE goals. It would be relatively easy to set up a blind bid system to ensure everyone gets a fair and equal shot which was the original intent. However, it is impossible to “guarantee” a percentage of MWBE participation without subverting the original intent of MWBE programs…..which is what is now happening. They have turned the original intent of this program on its head.
Nowhere in your comment do you address term limits. The same politicians who “turned the original intent of the program on its head” are the same politicians who created MWBE programs. When the original MWBE programs did not work as designed, the program was changed to try and make it work as Alston and others desired. This an unjust and prejudicial program sanctioned by Guilford County and the state of North Carolina. If the NC legislators wanted to enact a law that was fair to ALL North Carolinians, a bill ending all DEI and MWBE such programs would be enacted. Guilford County, City of Greensboro, and the City of High Point will never take such action. With Guilford County now lending money to private companies, which is unlawful, we will now be losing our tax money. If the MWBEs cannot get a bank loan because they are considered too risky, OUR tax dollars should not be used to make the same loan. Do not forget, this is not Skip Alston’s money; it belongs to the taxpayers.
We’re getting a wee bit carried away with the AI. Where’s Guilf-I-ord County?
I assumed that was a joke.
The idea is to guarantee work for financially un-qualified applicants at the expense and guarantee of the taxpayer. Get these clowns out, now!
Scott, I like your graphics department depiction of the new Norwegian bank, Guilfiord County Bank!!!
That says Guilfiord Gounty. It’s totally correct for our county though because our gounty commissioners have turned us into a freaking joke! This latest scam is just one more way for Skip away with your money Alston and Early to rob you blind Jones to pocket even more of our tax money! All of our commissioners are clowns. I used to respect Alan Perdue but he’s turned into them. All of them need to go!
This is such an improvement over “forgivable loans”. But, of course, I haven’t read the fine print. Does the borrower actually have to go out of business in order to invoke the loan guarantee? Or can the borrower just ask for it, like some borrowers just keep asking for (and seemingly getting) more forgiveness (and more loans)? Oh, by the way, does Durham County have or use “forgivable loans” like we do in Guilford County?
The fact that this is only available to a certain race of people to qualify for these loans is disgraceful and taking Guilford County taxes to back the loans. Generally, when you apply for a loan, a lender cannot base their decision on your race, color, religion, or sex (including sexual orientation and gender identity). This applies to most lenders, including companies that offer auto loans, student loans, and credit cards, among others.
” And everybody’s happy”…….well maybe not quite if you operate a business that submits competing bids for county contracts but is required to obtain your own funding. This is textbook favoritism.
I am a White male, small business owner with 2 employees I feel like i have been underutilized by Guilford County. Will I be considered for My taxpayer dollars as collateral for a loan. I will apply and if I get turned down, I’m going to sue for Racism. It’s time for this stupidity to end. If this was a White ran program skip and his minions would be standing on there heads screaming Racism
You’re right, GSO Man.
In 2024 America the only people who are subject to institutionalized discrimination are straight white men – the people who built this country (and who still keep it afloat).
Without us, the country would be like Africa – in every way.
Who wants to live in Africa?
Sounds like a great place for Big City maybe he could even become a king, I hear the bar for being king is kinda low over there
Africa is here, in Guilford County.
Defund the entire MWBE program immediately. This entire department together doesn’t have sense enough to get out of the rain. Every time someone from there opens their mouth, the taxpayers get bent over! Their math don’t be mathin’.
All such programs should be eliminated. They are government sanctioned discrimination. DEI is on the way out everywhere. About time.
In the early 2000s, it was “everyone should be able to buy a home”…even if they could not pay for it, we found out that was not true in 2008. For the last 15-20 years we were told, “Every person should get a degree, any degree regardless of the cost, because it will be a benefit in the end”. Of course, we are finding out right now that poor advice. So now it is “everyone should have their own business”. Three guesses on how this works out. It is easy to guarantee loans with other people’s money, especially taxpayer’s money, because unfortunately, there is never any real accountability. Just a shoulder shrug and off to the next great taxpayer-funded idea we go….yipeeee!!
Everyone is missing the hidden issue here. . .it’s not about a program to loan money. . . .it’s all about votes. They’re doing this to ensure they get the votes of the people who want loans. See how this works? It reminds me of the old saying. . .”a fool and his money are soon parted.”
I disagree that the loans are about votes. Skip Alston and his cadres already have the votes. This is pure and simple about government sanctioned reparations.
Exactly!