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)
Item 17 Report from City Manager Recommendation to approve the Revolving Loan Fund Program Administrative Plan required by the Economic Development Administration and adopt resolution authorizing the Economic Development Commission to designate three of its three of its members as the Revolving Loan Fund Committee responsible for administering the program under the plan citywide. Okay. There's a motion any Second Amendment to have. Councilman Price, did you have a question on the staff report on this or. Is there a staff report? Sure. Mike Conaway. Mayor, members of the city council. This item relates to an update of the revolving loan fund program administrative plan, which is required on a periodic basis by the Economic Development Administration and the establishment of a new r l p loan committee within the new Economic Development Commission. So as background, access to capital has always been kind of challenging for small and minority owned businesses, and in 1987, the city established its first loan program to address this issue. And since then, the city has been able to leverage its funding capacity through collaboration and partnerships with local banks, advantaged Certified Development Corporation and the National Development Council. The Revolving Loan Fund has been in place since 2001 with seed money from the Economic Development Administration, Community Development BLOCK Grant funds and enhanced with RDA funds. And since since its inception, the program has facilitated 52 loans totaling $4,256,000, with $1,000,000 currently outstanding and about 1.3 million available for programing. And most recently, the Department of Economic and Property Development assisted in the funding of a small business loan of $95,000 to beachy cream to expand and relocate its organic ice cream sandwich business from Santa monica to Long Beach. So since the demise of the redevelopment agency, this program has somewhat of been suspended for a certain period of time with the establishment or reestablishment of the Economic Development Commission. We're looking forward to referring this program to that commission so we can jump start it again and start engaging with our small business community. Catch them in. Appraisal? Yes. So what types of programs are improvements can businesses receive this loan for? Is there a limitation? Councilmember Price, members of the City Council, these are traditionally focused on three locations that would be for assets, for working capital and for inventory. So machinery, essentially machinery, equipment assets are inventory and working capital as well. We steer clear of construction loans as it triggers prevailing wage. And we limit our loans to $95,000 through the revolving loan fund, through the committee. And then anything over $1,000 comes to the city or $100,000 comes to city council. Is there any room for expanding the uses that would qualify under the loan? And I know you said you're excluding construction, but I know that there used to be years ago loans that allowed them to re face the facade or risk in their particular business, location or storefront. Is it possible that that could be included in this? That's absolutely included. That's correct. Okay. And how do we notify businesses of this opportunity when a new business applies in the city of Long Beach? Do we give them any materials or information about this? We have we do have handout materials. Our marketing efforts have been somewhat hamstrung in the last 18 months to two years. We have engaged the Grow America Fund group to assist in our marketing and assist in the processing of applications. We're hopeful that our partnering with Grow America and other funding agencies will allow us to market this more under the city of Long Beach. So right now it's mostly handout material. But as we start to engage in the economic and Property Development Department, we'll start bringing these these tools to the forefront. Great. Thank you. Thank you. And Mr. Conway and Mr. West, will you make sure to add this? I mean, this one is one of the great things that we do, obviously, at the city. I know we're going to be having an economic development study session that was being planned here in the next couple few weeks. Let's make sure that there's this is part of that discussion as well as as well as all the other programs that we provide business and then the marketing efforts that we're and how we're letting business know of what we're doing as well. Okay. There's a motion on the floor. I have some speakers. Does the maker of the motion want to say anything for Mr. Andrews or want to go down the speaker's list? Okay. Councilmember Austin. Thank you. I just had a really one one question regarding the roll off committee and how would that be selected and how would they be selected? When we meet with the Economic Development Commission tomorrow, they will be selecting a chair and a vice chair and we will be bringing back to that commission, hopefully at their subsequent meeting or request for them to select the relief committee meetings. Members, I'm sorry. There is some guidelines as to who should be included on that relief committee. And typically it would involve one local business owner, another member with commercial lending experience, hopefully with a local bank. And those two requirements are a requirement of the revolving loan fund administrative plan. And then the third member can be essentially who the commission selects. So it'll be a three member, our committee. Okay. I see that that it's going to be a three member committee. And I think it says that they have business or related experience in areas such as banking, accounting, education, trade, tourism, law, technology, real estate or manufacturing. It's pretty broad. Pretty broad. And I think our Economic Development Commission pretty much reflects that. Thank you. Thank you, Councilwoman Margo. I just wanted to thank the members of the community and the lending organizations that I'd met with recently and their enthusiasm for this exciting program. So thank you. Thank you. Public comment, which we would probably comment on this one or yet? I don't think so. In a public comment case saying none, please cast your votes. Motion carries seven zero 18. Item 18 Report from City Manager and Financial Management Recommendation to enter into four agreements for as needed space planning services in an aggregate amount not to exceed 500,000 over a three year period. Citywide.