Even though Nevada City’s small business assistance program yielded no loans to its more than 100 prospective applicants, City Manager David Brennan praised it for benefitting 52 people who attend its dozens of classes.
In 2008, the city garnered a $300,000 community development block grant to foster a business and microenterprise assistance loan program and classes for business startups. Only $64,123 was spent — $22,500 was reimbursed to the city for staff time on the program and more than $41,500 was used for subconsultant expenses for marketing and business class materials.
The loan program was to help get funding to people who generally would not get bank approval, said David Nelson, who oversaw the program and helped write applications for loans.
A rigorous application and stringent low-income parameters also played a part in applicants’ denials by SEDCorp, which served as the underwriter and the subgrantee of the program to Nevada City.
With much of the program framework in place and a pool of interested applicants already eyed, the city plans to use another $500,000 grant for similar purposes, with the hope of more successful outcomes, Brennan noted.
A discussion on the transfer and maintenance of Pioneer Cemetery to the Nevada Cemetery District was pulled from Tuesday’s agenda and is likely to be rescheduled to an April meeting, Brennan said.