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HomeMy WebLinkAbout9345OA 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 Z 85 RESOLUTION NO. 9,345 A RESOLUTION AUTHORIZING APPLICATION FOR A CVBG SECTION 108 LOAN AND OTHER PROCEDURES TO ESTABLISH AND el. WHSREA.S, U.S. Department of Housing and Urban Development (HUD) regulations pursuant to Section 108, Title I, Housing and Community Development Act of 1974, provide for CDBG recipient Cities to borrow funds for economic development with future CDBG grants as the sole collateral; and WHEREAS, subject to suitable funding and negotiation of an Agreement with a nonprofit lending agency to administer such a program consistent with the City's interests, the Board desires to initiate a program to advance development of small businesses which will employ low- income citizens or operate in and provide services to low- income neighborhoods, or both. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE CITY OF LITTLE ROCK, ARKANSAS: SECTION 1. The City Manager is authorized to submit to HUD an application for Section 108 Loan Guarantee assistance in the amount of $1,000,000 to establish a fund for economic development loans to help start or expand small businesses which will provide jobs for low- income workers or employment opportunities and services in redevelopment areas, or both; to issue notes as needed for such financing, if the Section 108 Guaranteed Loan is approved and suitable arrangements are negotiated for management of such a fund; and to draw from the balance in the CDBG Letter of Credit in keeping with applicable federal regulations, funds not immediately required for other budgeted activities in order to provide short -term interim financing for such purposes pending receipt of Section 108 loan proceeds from regular scheduled issuances of loan notes. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 r m m r m ADOPTED: March 7, 1995 N • mky • �r � 71 C �h