Haralson County discusses closing revolving loan fund and returning balance to State of Georgia

Haralson County County commissioners reviewed a proposed resolution to close a revolving loan fund established in 1998 and to ask the Development Authority to return the remaining loan balance to the State of Georgia.

County staff said the fund was created in 1998 by a sole commissioner in partnership with the Development Authority and the State of Georgia to provide economic-development loans, but it has not been used in recent years. The state has directed that the county close the fund and return the remaining balance so the county will be in compliance with the revolving loan fund rules.

The matter drew discussion about how much of the fund is actively loaned. Gary Broadstreet, chair of the Development Authority, said the authority has three loans currently paying on time and that the remainder of the funds have been sitting unused. Broadstreet said the Development Authority voted at its last meeting to return the idle funds to the state because it is difficult to meet state requirements and to make new loans from the fund.

County staff requested the board consider a resolution to formally close the fund and to ask the Development Authority to return the balance to the State of Georgia. No motion, second or formal board vote on the resolution is recorded in the transcript.

Discussion points included the history of the fund, the practical difficulty of complying with state requirements for new loans, and the Development Authority’s prior vote to return funds. Commissioners did not take a formal vote during the work session; the item remained under consideration.

The board moved on after the discussion; any formal action or vote would need to be recorded at a later meeting.