A beleaguered city program that provides loans to small and minority businesses is getting a fresh start.
Just over a year ago, an Office of Inspector General report detailed how the Access to Capital program wasn’t being utilized because of mismanagement.
The program that had provided more than $2.7 million in capital since being created in 2005 had not granted a loan since 2012, leaving $932,000 sitting on the shelf.
There had been no loan requests and the financial caretaker of the program backed out. Oversight fell through the cracks and the program remained dormant.
A bill filed this week would reboot it with a new program manager and recommitment from several of the city’s independent authorities, which provide a share of capital for the venture. Additionally, the bill reallocates the $932,000 that sat unused.
Kirk Wendland, the city’s office of economic development director, said the program basically restarting is a step in the right direction.
Small businesses, he said, often have trouble getting big banks to do microloans for their pursuits and a program like Access to Capital can help fill that need.
The city in recent months issued a request for proposals for the new program manager, but Wendland said not many responded.
However, the company awarded oversight is a well-respected leader in the field, he said.
Accion is a global nonprofit with a mission to make affordable financial services worldwide through offering microfinancing institutions. It’s the leading microlender in Florida with more than $18 million invested in local small businesses since 2003, according to a legislative fact sheet.
The company also works with 65 businesses in Duval County.
Last year, some independent authorities sought their money back from the program because it wasn’t being used.
For example a loan pool for the program had $75,000 from both JEA and the Jacksonville Transportation Authority and $50,000 from the Jacksonville Port Authority.
Much of the remaining $1.2 million loan pool the inspector general report highlighted came from the former program manager’s nonprofit entity.
The bill filed this week includes agreements between the city and the three authorities to continue using the funds for the small business program.
“We’re excited about it,” said Wendland of getting the program back on track. “The whole goal is to get more small business activities out there.”
A reboot could end up doing just that.
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