HomeMy WebLinkAbout2020-18 EDARPresident Elliott introduced the following resolution and moved its adoption:
EDA RESOLUTION NO.2020-18
RESOLUTION AUTHORIZING USE OF CARES ACT FUNDS FOR PAST
EXPENSES FROM FORGIVABLE LOAN PROGRAM AND PROVIDING FOR
LOAN FORGIVENESS
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, on May 11, 2020, the EDA established its COVID-19 Small Business
Emergency Forgivable Loan Program (the "Program") to assist small businesses located in the
City of Brooklyn Center, Minnesota which have experienced economic hardship as a result of the
COVID-19 public health emergency; and
WHEREAS, in establishing the Program, the EDA designated up to $150,000 from its
Economic Development Authority Fund as the source of funding for loans under the Program and
has expended $68,500 in Program loans; and
WHEREAS, subsequent to creation of the Program by the EDA, Governor Tim Walz
authorized the allocation by the State of Minnesota (the "State") to local governments, including
the City, of funds provided by Congress through passage of the Coronavirus Aid, Relief, and
Economic Security Act (the "CARES Act") to provide funding to states and local governments to
.over costs associated with the COVID-19 public health emergency, including for assistance to
small businesses to reimburse the costs of business interruption and other costs associated with the
COVID49 public health emergency ("Funds"); and
WHEREAS, the City Council of the City has allocated a portion of the Funds to reimburse
the EDA for prior Program expenses; and
WHEREAS, expenditures relating to the Program are necessary in connection with a public
health emergency caused by the COVID-19 pandemic, which were incurred on or after March 1,
2020, and were not accounted for in the Authority's regular budget in place as of March 27, 2020,
and therefore are permissible expenditures of Funds under the CARES Act; and
WHEREAS, the loan agreements signed by borrowers pursuant to the Program contained
criteria that, if met, would result in the loan being forgiven following application the EDA; and
WHEREAS, the EDA has expended all Program funds, no additional loans will be made
pursuant to the Program, and the EDA has determined to forgive all outstanding loans issued
pursuant to the Program.
NOW, THEREFORE, BE IT RESOLVED, by the Economic Development Authority of
Brooklyn Center, Minnesota Board of Commissioners as follows:
1. The City has allocated $68,500 to the EDA to reimburse the EDA for qualified
forgivable loans previously provided to small businesses through the Program and to
pay other expenses related to the Program, including but not limited to administrative
costs, all in accordance with federal and state guidelines for expending the Funds.
2. The outstanding balance of the loans issued pursuant to the Program shall be forgiven
in an amount not to exceed $68,500.
3. The Executive Director and EDA staff are hereby authorized and directed to take all
other actions, and execute such other documents, as may be needed to implement and
carry out the Program and the intent of this Resolution.
November 9 2020
Date
The motion for the adoption of the foregoing resolution was duly seconded by Commissioner
Ryan
and upon vote being taken thereon, the following voted in favor thereof.
Butler, Elliott, Graves, Lawrence -Anderson, Ryan
and the following voted against the same: None
whereupon said resolution was declared duly passed and adopted.