Community Vitality Center Board Minutes

April 28, 2010
ISU Memorial Union, Room 3512, Iowa State University, Ames IA

Members Roll Call; 16 present

Staff and Guests in attendance - 3

Craig Downs, Bill Menner, Sandra Burk, Dan Otto, Mark Edelman phone pm, Michael Hudak

Meeting called to order by Carol Smith at 10:05 AM.  Minutes from the Jan 26th, 2010 Board meeting were distributed and Smith asked for comments or corrections.  Motion made by Rick Morain and seconded by Mark Hamilton to adopt minutes as presented.  No further discussion, motion carried unanimously.

Craig Downs presented an overview and an update on Iowa MicroLoan.  All borrowers are current although one did have a bad check in April that has since been fixed.  SBA TA monies will total $247,500; 2/3 ($158,000) are recovery dollars and must be spent by Sept. 30th.  The IFMCV Board has authorized 1.25 FTE of TA staff.  The TA monies will be used to focus on accounting and client quick books software adoption for improved financial management practices.   This is something that several of the business incubation and microlending intermediary do for clients but is not currently being done by coaches.  Of 17 outstanding loans, only two have quarterly and year-end financials submitted.  The goal is to apply 75% of the TA money to current clients and 25% to Affiliates for training and coaching.    Downs said that he will be meeting with Andrea Giles from SBA during the AEO meeting in May.  The SBA TA monies are paid out as reimbursement for expenses.  Bill Menner asked about the shortness of the time frame and if the new position was just to be a five month contract.  There is the possibility that IFMCV can carry over the FY10 SBA monies and not have a reduction in the FY11 grant.  There was also mentioned as a caution to get written waivers of any policy and not just rely on assurances and waivers given verbally.   Hamilton asked if the TA monies could be used to create permanent training videos.  Downs said that could be a use and that would be a way to get a training library or purchase training videos that are already produced. 

Downs reviewed the status of the IA Legislature’s SOS Bill.  Iowa MicroLoan may likely be the administrator of that program.  Downs and Mark Edelman have been meeting with Bret Mills of IDED to discuss the writing of the rules.  The program would start 8/1/2010 and end 3/31/2011, just six months.  There would be $5 Million in funds to be disbursed and there is 2% allowed for administration which is $100,000.  The SBDCs are involved as well.  There will have to be a very expedited application process in order to disburse the money that quickly.  There will have to be additional staff to handle this and a web site will be crucial for this as well.  The legislation was designed to address problems with access to credit by small businesses.  The loans can go to businesses with as many as 35 employees with amounts for $2,500 to $50,000 and a maximum interest rate of 3.9%.  Morain noted that this top rate was lower than that for Iowa MicroLoan.  Downs said that there was nothing in the legislation giving a process for denials and so that will have to come in the rules.  There could be a lot wider approach in this program than in Iowa MicroLoan.  Rand Fisher asked about whether there could be a provision for a “buydown” for the Iowa MicroLoan program since the interest rate was lower.  That would provide a modest improvement of the Iowa MicroLoan terms.  Downs was not sure if such would be allowed under the bill or rules at this time, but would raise the issue as part of proposed rules allowing cofinancing for conventional lenders.   Deb Houghtaling asked about any provisions for TA in this.  Downs said that there was none, it was just a capital plan.  All interest generated from the loans would go back to the state. 

Smith asked Board members to give reports and updates.  Roxanne Carish reported on loan activity for the REC.  Hamilton reported on philanthropy activity.  There is not enough professional staff in the field to focus on endowment building.  Jim Erb discussed the usefulness of a community foundation’s strategic planning committee.

Menner gave an update on USDA issues.  Regionalism, renewable energy, and broadband are among the priorities.

Dan Otto and Michael Hudak gave a presentation on the tax facts project funded by CVC.  It is now online with data available for counties and communities.  They demonstrated the online functions and how the web site works.  Erb suggested using a focus group to work with Otto and Hudak to do a more in-depth use and review of the web site and the data and how to suggest using it and what revenue categories to emphasize.  Otto said that the intended audience would be towns smaller than 25,000 because those larger than that usually had professional staff to do and help with these data and such issues.  Ed Raber moved and Hamilton seconded to appoint a group to assist with the tax data.  Motion carried.  Houghtaling, Erb, Hamilton, Morain, and Raber were appointed by Smith.

Meeting break for lunch.

Edelman reported by phone from Washington, D.C. on the rural summit meeting he had attended in the morning.  Issues of importance are infrastructure, broadband, renewable energy, business development and lending to businesses. 

Philanthropy issues were discussed by the board.  There is an electronic version of the Council of Foundations report.  Perhaps Angie Dethlefs-Trettin could be invited to a future CVC meeting.

Raber moved to adjourn.  Motion carried.  Meeting adjourned at 1:45 P.M.