Title
Public Hearing to Approve Economic Development Appropriations For a Small Business Continuity Program in the Amount of $460,000
Body
Council Priorities: Create an Environment to Promote Economic Development Opportunities and Job Creation
Department: CMO
Council District: All
Public Hearing: Yes
Advertising Date/By: April 9, 2020/City Clerk
Contact 1 and Phone: Larry Davis 373-2002
Contact 2 and Phone: David Parrish 373-2002
PURPOSE:
To conduct a public hearing to consider authorization for City participation in a Small Business Continuity Program to be administered by Piedmont Business Capital.
BACKGROUND:
The City will partner with Piedmont Business Capital to provide a small business continuity program. The program will deploy small-dollar 0% interest loans (loans will include a market based interest charge to be funded from other non-City sources) from $5,000 - $10,000 depending on need with all payments deferred for the first 90-days on 48 to 60-month terms. Data will be collected and evaluated from businesses demonstrating COVID-19 related decline in profitability. Support services will be provided to counsel businesses through the changing landscape of commerce as a direct result of this virus. $400,000 will be allocated for the loan fund with $60,000 supporting administration of the program.
Pursuant to North Carolina General Statues Section 158-7.1, a public hearing is required to allocate funding for this program.
BUDGET IMPACT:
The funds for this program are already included in the appropriated budgets for the General Fund, Economic Development Fund, and Water Resources Fund. No additional funds will be required for this program, but budget adjustments will be necessary to move necessary appropriations to the correct accounts.
RECOMMENDATION / ACTION REQUESTED:
City Council is requested to adopt the attached resolution as ratification of previously adopted resolution #94-20 confirming the City’s participation in the Small Business Continuity Program.