To: Board of Supervisors
From: County Administrative Office
Agenda Section: Consent
Vote Requirement: Majority
SUBJECT:
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Headwaters Fund Board Recommendation to Increase Funds Available to Arcata Economic Development Corporation to $6,000,000
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RECOMMENDATION(S):
Recommendation
That the Board of Supervisors:
1. Approve the recommendation from the Headwaters Fund Board for a Fourth Amendment to the Lender Agreement with the Arcata Economic Development Corporation, dba North Edge Business Financing.
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STRATEGIC PLAN:
This action supports the following areas of your Board's Strategic Plan.
Area of Focus: Core Services/Other
Strategic Plan Category: 9999 - Core Services/Other
DISCUSSION:
On July 17, 2025 the Headwaters Fund Board (HWFB) met in a special meeting to consider a request from the Arcata Economic Development Corporation, dba North Edge Business Financing (North Edge) for further funding for participation in loans through the Headwater Fund Revolving Loan Fund.
On June 4, 2024, your Board approved an amendment to the Lender Agreement with North Edge, which increased the amount of funding available to them for matched participation loans, from the previously established limit of $3,500,000, to $5,000,000. Since that time, North Edge has obligated all but $300,000 of the remaining funding and are seeking an increase of $1,000,000, to an aggregate limit of $6,000,000.
Loans serviced by North Edge are done under the rules established in the Revolving Loan Fund program manual and codified through the Master Participation and Lender Agreements. Lenders have authority to draw up to $800,000 per borrower, without needing additional HWFB or Board of Supervisors approval, and to lend those funds with a 1:1 match, unless otherwise recommended through the HWFB.
By making additional funding available to the community through participation loans, the County of Humboldt directly contributes to the financial institutes and practices ...
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