Several years ago, Guilford County government purchased the former BB&T building in downtown Greensboro, which now houses, among other government services, the Register of Deeds Office and a health gym used by county employees.
However, on Thursday, Nov.21, at the Board of Commissioners’ last meeting, the commissioners voted to start a bank – loaning out taxpayer money to small start-up businesses and hoping that those businesses will pay the money back.
If not, the county’s taxpayers are out of luck.
The goal is to make it easier for businesses that can’t get funding through ordinary financial channels to get money from Guilford County taxpayers. The new Guilford County bank will loan that money out to businesses and county officials will keep their fingers crossed that those businesses will pay the money back.
The motion passed on an 8-to-1 vote at the Nov. 21 meeting, with Republican County Commissioner Pat Tillman being the only no vote after Tillman asked staff if the county would be liable for loans that businesses don’t pay back – and finding out that the answer was yes.
It may have hit Tillman that, if someone is coming to you to borrow money to start a business because no one else will loan it to them, then maybe that’s not the person you want to be loaning money to.
The program was brought to the commissioners by Guilford County Minority and Women Business Enterprise Department Director Shaunne Thomas.
She came to the board with the idea earlier in 2024, and, back then, many commissioners seemed skeptical of the wisdom and even the legality of using county funds to offer business loans to private sector businesses with the chance that those businesses might fail and the county might lose the money.
However, the details must have been worked out sometime during 2024 because, last week, the overwhelming majority of commissioners approved the move.
According to program information provided to the commissioners regarding the project, “Access to capital has been identified as a barrier for economic growth for Small Business Enterprises. Guilford GAINS [the new program] is designed to improve the small business access to capital and contracting opportunities with Guilford County firms and stimulate the economy through the empowerment of entrepreneurial efforts which are expected to increase the population, taxable property, employment, or business prospects within Guilford County.”
The “Guilford GAINS Fund” will be administered by Carolina Small Business Development Fund and will operate under a loan guarantee program that will provide access loans to small businesses by offering loans ranging from $25,000 to $75,000.
The Carolina Small Business Development Fund is a Community Development Financial Institution with the stated mission of “fostering economic development in underserved communities.”
Though the county’s MWBE Department works primarily to increase the county’s use of minority and women-owned businesses, Thomas said when asked after the meeting that male and non-minority-owned businesses would be allowed to apply for the start-up capital as well.
To start and fund the program, Guilford County has now established a $400,000 fund made up of taxpayer money. Of course, there are administrative fees as well – in this case, the county is paying $50,000 annually to the non-profit to administer the money – bringing the total cost of the contract to $550,000. That money will now flow into the private sector where a small business borrowing the money may or may not succeed.
The November 21 vote by the commissioners approved a three-year contract award with an administration fee of $50,000 a year and a guaranteed loan amount of $400,0000 for a total contract of $550,000 with the vendor Carolina Small Business Development Fund.
While commissioners discussed the idea quite a bit earlier this year in a work session, there wasn’t much discussion on the matter before the board voted to adopt the measure last Thursday night.
Written materials arguing for the move stated that “Small businesses in Guilford County have been adversely impacted by economic conditions caused by a pandemic, supply shortage, and significant inflation,” and noted that the funds appropriated by the Guilford County Board of Commissioners will be “for the purpose of stimulating the economy through the empowerment of entrepreneurial efforts which are expected to increase the population, taxable property employment, or business prospects within Guilford County.”
The Carolina Small Business Development Fund – which will get the $50,000 a year for administering the program – is a 501(c)(3) non-profit entity as well as a certified community development financial institution with a stated mission of “fostering economic development in underserved communities by providing capital, business services, and policy research to support small businesses.”.
Acting as a service provider for Guilford County, that group will administer the program using the $400,000 as guaranteed loan funds from the county’s taxpayers. The non-profit will get $150,000 over the initial three years of the program.
In Guilford County, the term ‘minority’ appears to refer exclusively to blacks. The plan involves providing loans to minority-owned businesses, which are mostly black-owned. Will this result in mostly black females receiving priority over white or females trying to start a business? Why does the Minority/Women Business Enterprise(MWBE) definition exclude white or white females? Is this not reverse racism? This is a bad idea and will fail. The ultimate decision will come down when the discrimination lawsuits hit Guilford County and its commissioners. No one should be able to get a loan based on the color of their skin or their gender. I thought we were moving forward with civil rights in America.
Non minority business ownwere are eligible to apply.
“…ELIGIBLE to apply” and will be given equal to consideration is two different things.
BINGO!
These are the people that voted against the dog day out program at the Guilford county animal Shelter to continue due to lack of funds. They don’t mind pissing away our money on the loan that will not be paid back at the expense of our poor unfortunate animals that will be euthanized more because of this program ending. These people that voted yes for this should be run out of office they have no conscience.
Fortunately, this week, the county did find $100,000 to give to the animal shelter and though the county is terminating the employe who has run the dogs day out program, the shelter director has said that the shelter will continue that program in some form.
I’m curious about the county gym for county employees. Is there a membership or a user fee or is the upkeep borne by the taxpayers?
Normally I would say that as an amenity that is offered by many large businesses, having a gym for county employees is a good way to retain talent that may otherwise look for work in the private sector. But not if they keep coming up with idea like this so-called bank.
Sounds like Black Backscratching to me…at tax payers expense. Who in their right mind would lend money under very questionable circumstances of it not being repaid? The taxpayer being screwed again and Guilford County citizens continue to vote these people into office.
The money will be available to minority and non minority businesses alike.
See my previous answer
How and where does one apply?
How do someone apply?
Please don’t be so naive. They are just saying this to save themselves from a law suit. What about men?
110%
I cannot offer words suitable for printing in a public publication. The same goes for what I could say to them in one of the County Commissioner meetings. I do suspect that this money laundering scheme is illegal. What did the County Attorney advise, or did they ask?
While it may be legal to do this and has been done by other jurisdictions, I believe that any responsible government would not take on a project like this. Thank you Commissioner Tillman for standing firm and voting against this. Just another hair-brained idea by a board that is not good for tax paying citizens, and another chance to watch money go out with little chance of any return. Obviously the board doesn’t care, it’s not their money. I wonder if the citizens will ever wake up and vote this group of clown Commissioners out of office. This is truly an insane idea !!
This is a way to force taxpayers to give money to deadbeats whose credit is so poor they can’t get approved by the banks. They don’t pay their bills, or pay back their loans, so their credit is rubbish.
And there’s a reason this travesty is initiated by the MWBE people. “Minorities” have much worse credit.
I remember the article from earlier and half believed it was a joke. Is there any hope that some power greater than I that can stop this?
We all know how this will turn out. The county taxpayers will be paying for these loans. There is a reason the small business cannot get a loan. They are a bad risk. Why don’t we just throw the money up in the air for whoever can catch it. These people that are pissing away our taxpayers money need to go. That’s ok because we can just raise property taxes again for the money lost. RIDICULOUS!!
The commissioners who voted in favor of this should voluntarily cover the losses out of their own funds.
I agree with you up to the word “voluntarily”. Take that word off the table.
A few years ago, didn’t they push for minority restaurants to locate in Downtown Greensboro, and then increase taxes on those same businesses? Sounds like a scheme to me. Skip sure does have his hands in all these pockets
Finally, at least one member of the Board of Commissar…I mean Commissioners is starting to show a willingness to stand up for the people who put them there. Where are the rest?
I agree with the proposal that loans that don’t get paid back come out of the Board’s salary, which is whole other point of discussion. When I served a Town Councilman I did so without pay and even twice voted AGAINST a motion to accept a stipend. I was there to work for the citizens because I care about my town, not the money.
What is described here is a $50,000 annual payment for three (3) years going to a nonprofit that receives its funding from government primarily and whose president makes an annual salary of over $205,000. So, let’s see. The Carolina Small Business Development Fund out of Raleigh is funded with taxpayer money and is now charging Guilford County taxpayers $150,000 to what essentially is a plan to give away $400,000 in taxpayer money that will actually be grant money to MWBE recipients. Oh, yes, of course, White men can apply. Was that part of Guilford County Minority and Women Business Enterprise Department Director Shaunne Thomas’ program when presented to the commissioners? The program reminds me of the federal student loan program that Obama’s administration took over from banks. A valid speculation of the takeover was so student loans could be forgiven.
Our government should not be in the lending business. Here, Raleigh, or Washington.
If you don’t have the cash to start a business, and you can’t get a bank loan, why should the taxpayer be on the hook?
I was self-employed from 1976 until 2022. All from my resources alone. Sometimes, I borrowed money from banks, and paid them in full. I made money, and I lost money. It turned out OK, but the main thing is that worked only for my customers, not The Man. It’s called free enterprise, I call it freedom.
Well done, Miller!
The WEF Elitists and the statists resent the independent small businesses because they can’t control them. That’s why they forced Mom & Pop hardware stores to close during COVID, but allowed the Home Depots to stay open.
Freedom is anathema to these people. It obstructs their plans for total control.
You can bet your sweet bippy that our local govt is in smoky & sweaty back rooms conjuring up more spend-a-thon projects while they can.
This kind of sounds like the 40-year-old baby mama of a five with six baby(yes six explain that) daddies who’s a year-round full-time student who doesn’t hold down a 8:00 to 5:00 job. I wonder if those loans are ever get repaid? And I wonder once these Commissioners are out of office and those loans are still open and have failed are they going to be held personally responsible and financially responsible for paying the loans back for such a poor decision.
That baby momma is more powerful than you here hence your discontent.
You sound like the deadbeat baby daddy
16 year relationship, I’m 38 married for none of your business. We just have all the power here to say that shouldn’t be offensive.
No one should ever be offended by truth
Not sure what power you are talking about
Democrats thought they were in control and had all the power before the election too. How did that work out
Who is “we”, BigCity?
BigCity, am I understanding your comment to be that because of your presumed “Black power,” your choice of a “baby momma” lifestyle is no longer offensive? Do you equate bad choices with power? Strut your stuff, but bad choices always equate to a loss of power. Baby mommas are a drain on society. Believe what you want but baby mommas are not looked upon favorably Why do Blacks have a problem with moral compasses?
I think this Guilford County Bank is ideal for high risk Minority businesses considering all the new construction and business opportunities in Downtown Greensboro. Do Skip and Rogers have a stake in building the new Sheriff’s Office and other projects? How many family members and close friends will benefit?
I wonder if this will work out to be a “forgivable loan” program, like some we have seen in the past offered to favored Greensboro causes? In theory, it might be a workable idea, like incentive payments or tax concessions offered to new or expanding businesses. But they generally come with strings, and it doesn’t sound to me like these loans will. At least it is only a modest amount of money (so far)…
Yep!
When the Left wants to give away our money they declare it just a loan – which will stimulate the economy, etc, etc, – and a few years later they cancel it (“forgive it”) so the taxpayer gets shafted in the end.
It’s a gift to their voters.
In the Third World we call this what it is : corruption.
I know I have already commented on this nonsense but then I just remembered that the county just cancelled the dog day out program for the Guilford County animal shelter. The reason for this was lack of money to have a full time employee with benefits. How dare these people give money away that will surely be a loss for every taxpayers at the expense of these poor animals. I think we should get together to open another shelter for these poor animals and apply for a loan. But wait I won’t qualify because I am white and have good credit. The people in our government that approved this nonsense should be run out of office.
Fortunately, the county late last week gave an extra $100,000 to the animal shelter and the director said that the program will continue in some form despite the termination of the employee who has been running it.
Incrementalism Scott, the nose of the camel. At some point there will be a “study” that will determine the program needs to be shut down.
take the red pill .
That study will cost us $250K
And once again the Fox raids the Chicken Coop! What is going to happen when we run out of Chickens? Unfortunately, you can’t fix stupid! Guilford County Voters deserve what and whom they have voted for! If I had a dollar for every dollar wastefully spent and or lost by an irresponsible Skip Alston and the Guilford County Board of Commissioners, I would be a wealthy person!
The mental “gymnastics” required to approve this program is very impressive. I thought, well, maybe we could compare this to the corporate incentives offered to attract large corporations to relocate or expand operations locally. Micro loans have worked wonders in other countries to life people out of abject poverty. So this has the earmarks of another government well intentioned “program” with high probability of failure, but possibly better than welfare. Stay tuned for the results.
$50,000 to run a $400,000 dollar program. Are they charging interest on the loans? To recoup the cost of administration they should be charging 12.5 % . Once the $400,000 has been loaned will the county add additional funds to be loaned?
Bad idea; and remember that the $400,000 8s just the beginning….
Very reckless handling of taxpayer money! More important to me would be a reduction in property taxes!
Reminds me of the old saying. . . .”A fool and his money are soon parted.”
The problem here is many in the “minority” community can’t get loans due to their poor history of paying it back. . .and on time.
If I could live anywhere other than Geekboro, I would do it. . .but wife says no, so she’s better than the alternative.
The Underground Railroad Bank – Better Call Skip.
Slavery never existed in Greensboro so this representation is not apt
You don’t know a lot about Greensboro history do you. Factually true, slavery as such never existed here but a lot of people in power were slavery supporters. Go back to school, get educated
I would like to read the transcript of Guilford County Minority and Women Business Enterprise Department Director Shaunne Thomas’ program presentation to the commissioners to learn who she stated would be eligible to apply.
The county eventually posts all meetings on the county’s website and I think also the county’s Facebook page. You can view her presentation there once it is up.
Your key word there is “eventually” I would like to know WHO determines when.
They raised our taxes for this crap?
I see another snake hole as Pat Tillman sees!!
Didn’t Freddie Mac and Fannie Mae loan money to people not qualified for other loans? How did that work out?
Someone do something about all that voted for this
Use the money to fund a business to pick up leaves. The business uses the money to buy back the leaf trucks. The city hires the business to pick up the leaves. The taxpayers save money on leaf collection. Win-Win
JQP, we don’t count. we are just the peons that they fleece.
The other question you should be asking is where is OUR representation on the Board. From what I’m seeing, only one person, Pat Tillman, seemed to care about us, the taxpayers
Liberals are more apt to be engaged in politics. . .for their own benefit. Conversely, Conservatives are more apt to be engaged in the private sector. See how this works?
JJOE is right. Control freaks and bossy people who crave control over others are drawn to government (and the political Left).
Normal well adjusted people who just want to live and let live have no interest in bullying others.
This explains why you see the most odious people as petty bureaucrats, police, and politicians.
I would add that lazy people are drawn to government jobs; no worry about being fired for incompetent work.