14-D
TO: Honorable Mayor and Members of the City Council
ATTENTION: Jeffrey L. Stewart, City Manager
FROM: Jim DellaLonga, Director of Economic Development
SUBJECT: Consideration and possible action to authorize the City Manager to suspend Chapter 5 of the Bellflower Business Assistance Program (Small Business Microloans).
DATE: June 12, 2023
EXECUTIVE SUMMARY
In July 2022, the City Council amended the Bellflower Business Assistance Plan to include a new Chapter 5 – Small Business Microloans. The Director of Economic Development recommends suspending Chapter 5 of the Plan. This will allow the Director to conduct research on potential entities that can vet, underwrite and make recommendations regarding program loan applicants to the program.
RECOMMENDATIONS TO CITY COUNCIL
1) Direct the City Manager to suspend Chapter 5 of the Bellflower Business Assistance Plan; or
2) Alternatively, discuss and take other action related to this item.
FISCAL IMPACT
None with respect to this action. Funds budgeted for the Chapter 5 of the Bellflower Business Assistance Plan are generally $50,000 per fiscal year.
DISCUSSION
Last July, the City Council amended the Bellflower Business Assistance Plan by adding Chapter 5 – Small Business Microloans. Recent experience with implementing Chapter 5 suggests that it would be more prudent for the City to identify and retain an organization that vets, makes recommendations, and underwrites applicants pursuant to the microloan program. Staff will be assessing various factors including but not limited to cost, turnaround time, experience, and credit assessment/loan underwriting principals. During this time, the City Manager will neither accept nor process any potential application submitted to the City pursuant to Chapter 5 of the Plan.