REPORT TO THE CITY COUNCIL
July 25, 2019
FROM: WILMA QUAN, City Manager
Office of the Mayor & City Manager
BY: KELLY TREVINO, Economic Development Analyst
Office of the Mayor & City Manager
SUBJECT
Title
Approve the 2019 Administrative Plan for the City of Fresno's Revolving Loan Fund Program
Body
RECOMMENDATION
Staff recommends Council approve the Administrative Plan for the City of Fresno's Revolving Loan Fund Program and direct staff to submit it to the U.S. Department of Commerce, Economic Development Administration.
EXECUTIVE SUMMARY
In 1980, the U.S. Department of Commerce, Economic Development Administration (EDA), approved a grant to the City of Fresno to establish a revolving loan fund (RLF).
As part of the administration of this RLF, the EDA requires that the City of Fresno submit an updated administrative plan every five years that outlines how the RLF program will be administered, including the marketing and lending practices involved in keeping the program successful.
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 the grant funds resulting in a RLF balance of $499,250. Since then, the funding has grown to approximately $795,000 with around $144,000 currently available to lend.
The goal of the RLF is to provide financial assistance to businesses that, while credit worthy, are not able to obtain financing from the private sector. The RLF serves as a critical component of the City's efforts to improve the City's economy, reduce unemployment by assisting in the start-up of small businesses, enhance the economic base of the community and enhance the quality of life of its residents.
Since January 21, 1999, the City's RLF Program has been administered by Cen Cal (formerly known as Fresno Certified Development Corporation).
ENVIRONMENTAL FINDINGS
The approval of an RLF Administrative Plan is not subject to CEQA
LOCAL PREFERENCE
Lo...
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