TITLE
Recommendation to approve the Revolving Loan Fund Program Administrative Plan (Plan) required by the Economic Development Administration; and
Adopt resolution authorizing Economic Development Commission to designate three of its members as the Revolving Loan Fund Committee responsible for administrating the Revolving Loan Fund Program under the Plan. (Citywide)
DISCUSSION
In March 2001, the City Council authorized an application to the Economic Development Administration (EDA) for $1 million in grant funds to establish a Revolving Loan Fund (RLF) to benefit small and minority businesses in the City. This application was approved by the EDA and the City accepted grant funds in September 2001. The City has since used EDA funds plus local matching funds to augment the RLF to assist local businesses in expanding and creating/saving jobs.
Through active participation and partnership with the local Small Business Development Center (SBDC), National Development Council (NDC), local banks, and Certified Development Corporations (CDCs), the City has developed effective tools for economic development planning, coordination, and cooperation and easy access to conventional loans. Most recently, the City has expanded its partnership with Long Beach City College to provide access to capital for eligible candidates participating in the Goldman Sachs 10,000 Small Businesses initiative.
The EDA requires that the City approve and adopt, from time to time, an updated Revolving Loan Program Administrative Plan (Plan) governing the administration of various EDA loan programs. The Plan also requires the formation of an RLF Committee to oversee and administer the RLF Program. The current RLF Loan Committee was selected in 2009 by the former Redevelopment Agency Board. The three-member Loan Committee consists of a member of the former RDA Board, a local business owner, and a banker active in commercial financing. With the dissolution of redevelopment statewide, this co...
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