TITLE
Recommendation to authorize City Manager, or designee, to execute all documents necessary to enter into an agreement with Grow America Fund, Inc., a nonprofit organization, for the purpose of continuing various business loan programs administered by Grow America Fund, Inc., and to promote the City’s business assistance loan programs, in an annual amount not to exceed $75,000, for a period of one year, with the option to renew for two additional one-year periods, at the discretion of the City Manager. (Citywide)
DISCUSSION
On May 20, 1997, the City Council authorized the City Manager to execute an agreement with Grow America Fund, Inc., for the purpose of establishing a business loan program known as the Grow Long Beach Fund (Fund). The program became operational on June 1, 1997, and was supported by the Redevelopment Agency (RDA) until its dissolution by the State of California in 2012. In recent years, the Fund and associated administrative costs have been supported by the Economic Development Department, via grants and other one-time budget savings identified as needed
The National Development Council (NDC) is a nationwide, private nonprofit corporation designated as a Small Business Lender and is qualified to serve as a Small Business Administration (SBA) 7(a) lender. The Fund is operated as a subsidiary of the NDC. Since 1997, the NDC has provided underwriting services for the City’s small business loan programs including the Long Beach Emergency Loan Program (ELP), which was recently established to assist Long Beach businesses with the COVID-19 pandemic economic impact.
Continued City participation in the Fund offers Long Beach businesses access to the SBA 7(a) loan program and an array of other critical services not available to high-risk borrowers from the for-profit lenders. City funds are leveraged four-to-one by Fund dollars, through secondary market sale of the SBA guaranteed portion of each loan. The SBA guarantees up to 75 percent o...
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