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File #: ID 24-1488    Version: 1 Name:
Type: Action Item Status: Passed
File created: 10/25/2024 In control: City Council
On agenda: 11/7/2024 Final action: 11/7/2024
Title: Approve the Second Amendment to extend the term of the Agreement for Administration of City of Fresno Revolving Loan Fund Program for six months to May 31, 2025, with Cen Cal Business Finance Group, Inc., a California Non-profit Corporation.
Sponsors: Economic Development Department
Attachments: 1. 24-1488 Second Amendment, 2. 24-1488 Original Agreement
REPORT TO THE CITY COUNCIL


FROM: MICHAEL ROGERS, Assistant City Manager
Office of Mayor and City Manager

BY: KELLY TREVINO, Assistant Director
Economic Development Department

SUBJECT
Title
Approve the Second Amendment to extend the term of the Agreement for Administration of City of Fresno Revolving Loan Fund Program for six months to May 31, 2025, with Cen Cal Business Finance Group, Inc., a California Non-profit Corporation.

Body
RECOMMENDATIONS

Staff recommends Council authorize this Second Amendment to the Agreement with Cen Cal Business Finance Group, Inc., to allow the extension of the term of Administration of the City of Fresno Revolving Loan Fund Program to May 31, 2025.

EXECUTIVE SUMMARY

The City of Fresno (City) currently has a 5-year agreement with Cen Cal Business Finance Group, Inc. (Cen Cal) to administer the City's Revolving Loan Funds (RLF) Program (Program). This Agreement went into effect on November 22, 2019, and will expire on November 21, 2024.

Staff is currently in the process of drafting a Request for Proposals (RFP) for future administration of the Program. That RFP is expected to be released within the next 30 days. This extension serves to provide the additional time necessary to release the RFP, gather and review responses and bring a new agreement to Council for review and approval. That process is anticipated to take approximately four to six months.

BACKGROUND

The City of Fresno Economic Development Department currently has two revolving loan funds established under the Program with monies 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.

The goal of the Program is to provide financial ass...

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