Dane County  
Minutes - Final Unless Amended by  
Committee  
Community Development Block Grant (CDBG) Commission - Loan  
Review Team Subcommittee  
Consider:  
Who benefits? Who is burdened?  
Who does not have a voice at the table?  
How can policymakers mitigate unintended consequences?  
Thursday, May 30, 2024  
1:00 PM  
Hybrid Meeting: Attend in person at the City of Sun  
Prairie Town Hall  
A. Call To Order  
Meeting was called to order at 1:03pm with a quorum present.  
Staff Present: Joanna Cervantes, Cindy Grady, Michelle Bozeman  
3 - JEREMIAH DEGOLLON, GODWIN AMEGASHIE, and TAYLOR BROWN  
Present  
B. Consideration of Minutes  
03-14-2024 CDBG - LOAN REVIEW TEAM MINUTES  
2024  
MIN-017  
Attachments: 3-14-24 CDBG LRT Minutes  
Motion was made by Brown and seconded by Amegashie to approve the  
3-14-2024 meeting minutes. No discussion and no opposition. Motion passed  
unanimously.  
C. Reports to Committee  
COMMERCIAL REVITALIZATION REVOLVING LOAN FUND  
2024  
RPT-014  
Attachments: CDBG - CRLF - Loan Manual - 8.13.2013 with Appendices  
ECONOMIC DEVELOPMENT REVOLVING LOAN FUND  
2024  
RPT-015  
Attachments: ED-RLF-Manual (1)  
MICROENTERPRISE BUSINESS LOAN  
2024  
RPT-016  
Attachments:  
Microenterprise Business Loan Program- Policies and Procedures  
Manual- FINAL (approved by CDBG Commission 02.16.17)  
Cindy Grady indicated that paper copies of the Loan Manuals were mailed to the Loan  
Review Team subcommittee members, so they could review them prior to the meeting.  
There was discussion on whether the loan funds are federalized and how closely we need  
to follow the wording in the manuals. Joanna Cervantes mentioned that at one time the  
funds were federalized, but no longer are. Cindy Grady is engaging in conversations with  
finance and accounting personnel to determine loan account balances, and to confirm if  
the funds are de-federalized.  
D. Action Items  
LITTLE CARDINALS ACADEMY LOAN MODIFICATION REQUEST  
2024  
ACT-006  
Attachments: RLF letter 4-2024  
Cindy Grady gave an overview of the Little Cardinals Academy loan (Economic  
Development Loan). The business has not been able to make 6 payments in the last  
year, and is currently in default. Grady spoke to the borrower, who submitted a letter  
asking that the April and May payments be reduced to $150.00 each month. The CDBG  
team consulted with the County Corporation Counsel, and determined that a reduced  
payment is better than no payment.  
Staff suggests that borrowers formally submit a request to the CDBG team asking for a  
loan modification. Staff can then use discretion on whether a loan modification should  
be considered, and make a recommendation to the LRT and CDBG Commission.  
Chair Brown suggested that the borrower provide additional information to staff as needed  
(e.g. letter requesting reduced payments, additional collateral, new payment plan, and  
other application components if necessary).  
Chair Brown made a motion to allow CDBG staff to use their discretion to  
approve loan modifications for up to 6 months; longer loan modification requests  
need the approval of the LRT and CDBG Commission. Motion seconded by  
DeGollon. Motion passes unanimously by voice vote.  
MICROENTERPRISE BUSINESS LOAN MANUAL  
2024  
ACT-007  
Attachments:  
Microenterprise Business Loan Program- Policies and Procedures  
Manual- FINAL (approved by CDBG Commission 02.16.17)  
The Loan Review Team discussed possible edits to the MBL manual, which included  
clarifications to the Applicant Eligibility section (FTE definition, loan amount, number of  
employees, physical location of business) and making the manual more readable (like a  
checklist). Other items to consider incorporating into the manual are a statement to  
encourage Minority & Women Owned Business applicants, create a Frequently Asked  
Questions (FAQs), an online application, and examples of approved loan projects.  
LRT would like to see loan applications include a 2-page summary of the business plan;  
and have a third-party vendor conduct thorough loan reviews and underwriting. They would  
also like to require that proof of insurance is submitted to the CDBG staff annually for  
the life of the loan.  
Chair Brown suggested that staff look at what other agencies are doing with Revolving  
Loan Funds, and to examine the matching funds section, loan size (increase), length of  
loan, and no repayment for six months should be reduced. Other language changes and  
edits were suggested by the LRT members.  
There was no action to be voted on. Staff will provide draft with edits of the MBL manual  
at the next LRT meeting.  
This resolution was not acted on  
REVIEW AND EDIT LOAN MODIFICATION SECTION IN MANUALS (SEE  
PAGE 38 IN ED-RLF MANUAL)  
2024  
ACT-035  
The LRT discussed the loan modification section in the manuals. Loan modification  
requests by borrowers may include, with staff discretion: letter of intent and new payment  
plan by borrower; additional personal collateral; and a new application and underwriting.  
Borrowers may also incur fees and penalties as a result of staff time, underwriting, and  
other fees.  
The LRT determined that any new loans will not be eligible for forgiveness.  
Motion was made by Chair Brown and seconded by Amegashie that loan  
forgiveness is no longer option for the Microeconomic Business Loans; and will  
not be considered for the other loan programs. Staff can approve a temporary  
loan modification for up to 6 months for any existing loan. Motion passes  
unanimously by voice vote.  
E. Future Meeting Items and Dates  
Staff will have draft of changes to MBL manual and loan modification section  
Staff will provide Information on loan funding streams  
Next meeting is Monday, June 24, 2024, Sun Prairie City Hall, 300 E. Main Street.  
F. Public Comment on Items not on the Agenda  
None.  
G. Adjourn  
Motion was made by Amegashie and seconded by DeGollon to adjourn the  
meeting at 2:28pm. Motion passed by voice vote.