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• the request of other communities. Final action on service <br /> territory expansion rests with the SBA. <br /> NEEDS IN SHERBURNE COUNTY <br /> During its recent survey of manufacturing companies, the <br /> Sherburne County Economic Development Council found that small. <br /> businesses lack easy access to long term, low interest <br /> financing programs. Due to changing underwriting standards, <br /> lenders are requiring more equity into commercial loans . Some <br /> survey participants suggested that local banks needed to be <br /> more business-oriented and user-friendly. <br /> Presumably, a Certified Development Company, working with small <br /> businesses and local lenders, could address the needs <br /> identified in the manufacturer's survey. <br /> SUMMARY <br /> Economic development professionals throughout Sherburne County <br /> have discussed the merits of a certified development company at <br /> great length. Similar discussions have occurred with <br /> communities and advisory groups in neighboring Benton and <br /> Wright counties. It was concluded that creating a new 504 <br /> company would be cost prohibitive. A solution is to align with <br /> • an existing 504 company such as the CRDC. <br /> Issues which emerged from this discussion include: renaming the <br /> organization, expanded representation on the Board of <br /> Directors, and stock purchases-donations. For example, if <br /> territory expansion is approved, CRDC will likely be renamed; <br /> one suggestion is "Central Region Development Company" . More <br /> Directors from the expanded territory will be required for the <br /> Board. Lastly, stock is dominated by the original investors in <br /> 1978 and from persons that invested in subsequent years . <br /> To further encourage broader representation in the expanded <br /> CRDC, new stock sponsors are sought. Likely sponsors include <br /> EDA's, cities, banks, and utility companies. Each group is <br /> requested to purchase $1,000 worth of stock in the renamed (and <br /> reorganized) 504 company. This purchase would be payable only <br /> after SBA acts on the service territory expansion. <br /> ACTION REQUESTED <br /> Following a presentation by the CRDC Administrator, the EDA <br /> will be respectfully asked to purchase $1,000 (one thousand <br /> dollars) worth of stock in a Central Region Development Company <br /> which will serve an expanded territory of Sherburne County. <br /> This stock purchase will not occur until SBA approves a request <br /> 110 for territory expansion. <br />