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Program uses county funds to encourage local lending
17 July 2010
by: Daniel Smith | YourHub.com
Article Contributed on: 7/15/2010 8:59:05 AM
LITTLETON -- An Arapahoe County investment partnership with local banks is helping existing small-to-medium-sized businesses grow in spite of the continued economic doldrums.
Treasurer Doug Milliken initiated the concept more than a year ago. It involves investing county funds in certificates of deposits at a half dozen local banks that promise to provide loans to county businesses at lower than market rates.
"In talking to businesses in the county, I found out that a lot of credit-worthy businesses couldn't get loans," he said. "It's part of the credit crunch, and partly the banks and partly the regulators of the banks and I thought I should do something here to solve that and get some money to businesses."
One of the companies helped by the program is IE Electric of Centennial.
President Gery Noonan said he formed the company with a partner and had about 15 employees originally, shrinking to about seven after the start of the economic downturn. Since the loan, he's been able to add eight employees.
"... Having that additional funding available has really made a difference for us - it allowed us to take a few jobs that we weren't sure we could take, and a few others came in after that, so we've been very fortunate the past few months," Noonan said.
With the help of the county program and a long-standing relationship with Colorado Business Bank, he was able to take advantage of the investment money available to help local businesses grow.
The line of credit of about $200,000 went mostly for personnel and some additional tools, Noonan said, and he now has an easier time paying bills.
"Easing up the banking regulations, I think, is going to help everybody," he said. "If we can get more money out there, it's going to put a lot more people back to work."
Milliken said he usually deposits money in the bank with an agreement that it will be made available to businesses looking to expand, or for continued operations.
"These are the people to who need the money," Milliken said. "They (banks) are closer to the ground and use their judgment on what is a safe investment and they take all the risk."
Milliken said there is no risk to the county with the money invested in the banks, and he's received no negative reaction from bankers either -- though some are still very conservative about making loans.
"I hope to put about $40 million by the end of the year," he said, noting current investments total about $25 million.
Milliken said it's rewarding to see positive ripples in a local economy stimulated by the investments.
"... This is why I wanted to do this -- it's gratifying to hear people are getting jobs and businesses can thrive ... it's the kind of really focused, local stimulus that helps directly the people who the money belongs to, in a sense."
For more information about the program, call the Treasurer's Office at 303-795-4550 or go to co.arapahoe.co.us.
Daniel Smith: 303-954-2671 or This e-mail address is being protected from spambots. You need JavaScript enabled to view it
Arapahoe County's 'stimulus' plan brings banks, small business together
09 June 2010
BY BRANDON JOHANSSON
The Aurora Sentinel
AURORA | In the year since Arapahoe County Treasurer Doug Milliken launched a program aimed at pumping county dollars into the local economy, area banks have doled out more than $18 million in loans to area businesses.
And, Milliken said, he hopes to put about $22 million more into area banks before the end of the year.
“It’s going very well,” Milliken said of the program, which he dubbed the “Arapahoe County Stimulus Project.”
Under the program, Milliken purchased certificates of deposit in a half dozen local banks with the expectation that the banks will provide loans to small and medium-sized businesses in Arapahoe County. Each CD purchase is protected by the Public Deposit Protection Act and fully collateralized to 102 percent, as well as secured by U.S. Treasury bonds placed in the ownership of the county, according Milliken.
Initially, the plan was to cap loans at $500,000. But Milliken said because of higher demand than originally expected, some of the loans have been for more, including at least one for about $700,000.
Arapahoe County Banking on Local Success
03 June 2009
By Brandon Johansson - The Aurora Sentinel
AURORA | Several local banks are each $5 million richer because of investments from Arapahoe County Treasurer Doug Milliken.
But there is a catch that comes with taking deposits of millions in taxpayer cash: Local banks have to loan the money out, and they can only lend it to local businesses.
"I am expecting job creation and business expansion to occur as a result of this program, which ultimately benefits our citizens and local businesses. In addition, there is full security to Arapahoe County, as well as a better financial return," Milliken said in a statement announcing the plan.
The plan is relatively simple: Milliken purchased certificates of deposit in local banks with the expectation that the banks will provide loans to small and medium-size businesses in Arapahoe County. Each CD purchase will be protected by the Public Deposit Protection Act and will be fully collateralized to 102 percent, as well as be secured by U.S. Treasury bonds placed in the ownership of the county, according to the statement.
CD buys aimed at helping businesses
01 June 2009
Denver Business Journal - by Renee McGaw
Doug Milliken, Arapahoe County treasurer, sits outside the Colorado Business Bank in Littleton. The county is buying CDs from the bank with the requirement they use the cash to make local business loans.
Last year, Doug Milliken watched Congress hammer out measures to boost bank lending, and doubted that much of that money would reach businesses in his county.
Stimulus Done Right
29 May 2009
Arapahoe County is investing its money in the community by buying $5 million in certificates of deposit from local banks. In return, those banks will have the capital to make loans to small businesses that have been hobbled by the credit crunch.
Of all the government stimulus programs I’ve heard about, this one is by far my favorite. Here’s why.
Most of the programs we hear about are not stimulus-minded at their core. I think stimulus has become a misused umbrella term for government expenditures, bailouts and control-heavy takeovers. There is a top-down, “here’s some money, don’t blow it” mentality to most of the programs you hear about on the national scene. There is a sense of throwing money at problems. I don’t like that.
This program, however, seems more like a business move. It’s mutually beneficial. It doesn’t cost taxpayers later on. It’s smart.
County Launches Economic-Stimulus Program
23 May 2009
In response to the continuing economic downturn, Arapahoe County Treasurer Doug Milliken has launched an economic-stimulus program to encourage local banks to invest in small and medium-sized businesses in the county.
The elected treasurer made the announcement May 20 in front of Littleton’s Colorado Business Bank, one of three financial institutions participating in the county investment program.
Milliken said he is using county money to purchase certificates of deposit in local banks with the expectation that the banks will in turn use the money to provide loans to businesses in Arapahoe County.
“I was very concerned that credit-worthy businesses were not able to get loans for working capital, to expand, to keep them in business,” the treasurer said. “... We’ve already started with $5 million in these three banks and already a big chunk of it has been loaned out to businesses.”