HomeMy WebLinkAbout2020-09 EDARCommission Graves introduced the following resolution:
EDA RESOLUTION NO.2020-09
RESOLUTION APPROVING ESTABLISHMENT OF THE SMALL BUSINESS
EMERGENCY FORGIVABLE LOAN PROGRAM
WHEREAS, the Economic Development Authority of Brooklyn Center, Minnesota (the
"EDA") was created pursuant to Minnesota Statutes, sections 469.090 through 469.1082 to
exercise its powers to promote and protect economic development within the City of Brooklyn
Center ("City"); and
WHEREAS, the spread of COVID-19 and the resulting emergency declarations and
emergency orders issued by the Governor have created a great deal of uncertainty and has
dramatically impacted local businesses, particularly small businesses; and
WHEREAS, the City has a large number of micro businesses, many owned by
immigrants and people of color, that are a critical part of the economic vitality of the City and, as
the EDA discussed at its May 4, 2020 work session, are the businesses that have been hit
particularly hard by this emergency; and
WHEREAS, EDA staff prepared and presented a memo, which is incorporated herein by
reference, ("Staff Memo") at the EDA's May 11, 2020 meeting that set out the details of a
proposed Small Business Emergency Forgivable Loan Program ("Loan Program"); and
WHEREAS, it is consistent with the goals of the EDA, and is within its powers, to
establish the proposed Loan Program in this extraordinary time to assist small businesses to
remain in operation and maintain its employees to help protect the City's economy and reduce
unemployment.
NOW, THEREFORE, BE IT RESOLVED, by the Economic Development Authority of
Brooklyn Center, Minnesota Board of Commissioners as follows:
1. The EDA hereby establishes the "Small Business Emergency Forgivable Loan
Program" as provided in this Resolution. The EDA authorizes a total of $150,000 to
be used for the Loan Program, with individual loans of up to $3,000,
2. The Loan Program shall be structured in accordance with the provisions proposed in
the Staff Memo.
3. The Executive Director and EDA staff are hereby authorized and directed to do each
of the following regarding the Loan Program:
a. Prepare an application, forgivable loan agreement, policy and guidelines, and
such other documents as may be needed;
b. Receive applications and determine eligibility;
c. Enter into such agreements on behalf of the EDA as may be needed;
d. Distribute loans to eligible small businesses;
e. Communicate with the loan recipients as needed to determine if they are
eligible to have the loan forgiven and, if not, to collect the unforgiven portion
of the loan with interest; and
f. Take all other actions, and execute such other documents, as may be needed to
implement and carry out the Loan Program and the intent of this Resolution.
May 11, 2020
Date
The motion for the adoption of the foregoing resolution was duly seconded by Commissioner
Elliott
and upon vote being taken thereon, the following voted in favor thereof:
Butler, Elliott, Graves, and Ryan
and the following voted against the same:
None
whereupon said resolution was declared duly passed and adopted.