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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.
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ADOPTED: March 7, 1995
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