REPORT TO THE CITY COUNCIL
FROM: GEORGEANNE A. WHITE, City Manager
Office of Mayor and City Manager
BY: KELLY TREVINO, Assistant Director
Economic Development Department
SUBJECT
Title
Approve the award of an agreement with Cen Cal Business Finance Group, LLC, for a period of 10 years to administer the City of Fresno Revolving Loan Fund (RLF) Program (RFP No. 12500029)
Body
RECOMMENDATION
Staff recommends Council approve the award of an agreement with Cen Cal Business Finance Group, LLC, for a period of 10 years to administer the City of Fresno Revolving Loan Fund (RLF) Program (RFP No. 12500029).
EXECUTIVE SUMMARY
The City of Fresno Economic Development Department currently has two Revolving Loan Funds (RLF’s) established with funds from the Economic Development Administration of the United States Department of Commerce (EDA). The original “LEGACY” RLF, which has been in existence since 1980, has a current balance of approximately $760,000, with $80,000 available to lend. The “CARES” Act RLF, established in 2020, has a current balance of approximately $640,000, with $100,000 available to lend.
On December 11, 2024, a Request for Proposals (RFP) was released to solicit proposals to administer these funds and a total of two (2) proposals were received. These proposals were evaluated by an evaluation committee with the goal of awarding a contract to the proposal that provides the best value for the City. The proposal submitted by Cen Cal Business Finance Group, LLC (Cen Cal) was determined to provide the best value. It is therefore staff’s recommendation that Council approve a new 10-year agreement with Cen Cal to administer the RLF.
BACKGROUND
In 1980, the EDA approved a $600,000 Grant to the City of Fresno to establish a RLF. In 1989, the EDA deobligated $100,750 of those grant funds resulting in an RLF balance of $499,250. Since then, the funding has grown to approximately $760,000 with around $80,000 available to lend.
In 2020, the EDA awarded a CARES Act Non-Competitive RLF in the amount of $830,000 with the primary goal of assisting in alleviating the sudden and severe economic distress and dislocation caused in the City by the coronavirus pandemic. During the first two (2) years of this RLF, the funds could only be used to assist businesses who had been impacted by the pandemic. Now that the two (2) year performance period has passed, these funds are loaned under the same administrative guidelines as the original EDA RLF. The CARES Act RLF has a current balance of approximately $640,000 with $100,000 available to lend.
The goal of the RLF Program is to provide financial assistance to businesses that, while credit-worthy, are not able to obtain financing from the private sector. The RLF Program serves as a critical component of the City’s efforts to diversify and enhance the economic base of the community and the quality of life for its residents.
Since January 21, 1999, the City’s RLF Program has been administered by Cen Cal. The current agreement will expire on May 31, 2025. Over the past 25+ years, Cen Cal has consistently demonstrated their ability and commitment to conform to all City of Fresno and EDA requirements
The two (2) proposals received were evaluated based on a number of factors including: responsiveness to the RFP, costs to the borrower, ability to meet scope of service requirements, organizational capacity and experience of staff, and EDA RLF Reporting Ratings. The evaluation committee determined that the proposal submitted by Cen Cal was superior overall as it was clearly and concisely responsive to the RFP, was most cost effective to the borrower, and demonstrated the organizational capacity to most effectively and efficiently meet all stated service requirements. This includes a lending team with the collective lending experience and expertise needed to accurately process loan applications, provide vital technical assistance, and conform to all reporting and other requirements to maintain the quality and integrity of the loan portfolio.
ENVIRONMENTAL FINDINGS
This item is not a project as defined by the California Environmental Quality Act Guidelines Section 15378.
LOCAL PREFERENCE
Local preference was not implemented because this item does not include an award of a service or construction contract.
FISCAL IMPACT
The administrator’s compensation for services is derived from income generated through the granting and collecting of loans. These fees are either collected from the borrower or the RLF income generated. There is no fiscal impact to the City of Fresno.
Attachments:
Bid Evaluation
Committee Report
DRAFT RLF Administration Agreement with Cen Cal Business Finance Group, Inc.