To: BOARD OF SUPERVISORS
From: Executive Office
Meeting Date: October 22, 2024
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Department Contact: |
Kelly Hansen |
Phone: |
707-463-441 |
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Department Contact: |
Xuyen Mallela |
Phone: |
707-463-4441 |
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Item Type: Consent Agenda |
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Time Allocated for Item: N/A |
Agenda Title:
title
Adoption of Resolution Approving Loan Forgiveness of the Remaining $84,829.42 Balance of Happy Rides, Inc.’s Community Development Block Grant (CDBG) Loan (PI-101) and Release of Lien on Personal Property, per the Terms of the County’s 2020 COVID-19 Business Assistance and Recovery Loan Fund Program
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Recommended Action/Motion:
recommendation
Adopt Resolution approving loan forgiveness of the remaining $84,829.42 balance of Happy Rides, Inc.’s Community Development Block Grant (CDBG) loan (PI-101) and release of lien on personal property, per the terms of the County’s 2020 COVID-19 Business Assistance and Recovery Loan Fund Program; and authorize Chair to sign same.
End
Previous Board/Board Committee Actions:
On May 19, 2020, the Board of Supervisors adopted Resolution No. 20-065 approving and authorizing the CEO to submit an application for funding and execute grant agreement and any amendments thereto to receive funds from the 2019-2020 funding year of the State CDBG grant program utilizing $300,000 in Program Income.
On December 8, 2020, the Board of Supervisors adopted Resolution No. 20-165 approving the use of and authorizing the CEO to submit an application to utilize CDBG program income for establishing and funding a Business Assistance revolving loan fund and execute any agreements associated with said loan fund. With said resolution increased the updated the Program Income funds in the amount of $500,000 for the purposes of establishing a business assistance revolving loan fund.
On December 5, 2023, the Board approved Resolution 23-191, authorizing the submittal of an amendment to Mendocino County's current CDBG Program Income Standard Agreement with Housing and Community Development (HCD) in the amount of $263,278.05.
Summary of Request:
The County of Mendocino applied for and received Community Development Block Grant (CDBG) funds from the State to create the Mendocino CDBG COVID-19 Business Assistance and Recovery Loan Fund Program. The program was designed to provide low-interest forgivable loans to small and medium-sized businesses in unincorporated areas of the county affected by the COVID-19 Shelter in Place (SIP) order. The program aimed to help businesses financially recover from the negative impacts of the pandemic. As a vital element of the program guidelines, loan balance forgiveness was provided to selected businesses meeting job creation and retention requirements. The measurement for meeting this requirement was based on the selected business creating and retaining one full-time equivalent job for every $35,000 loaned for two years, with 51% of the jobs being filled by low/moderate-income persons. This policy was included to encourage companies to retain employees during the COVID-19 recovery.
Happy Rides, Inc. received a loan (PI-101) of $105,000 on November 8, 2022, through the County's COVID-19 Business Assistance and Recovery Loan Fund Program. According to the loan terms, the borrower was required to create and retain one full-time equivalent job for every $35,000 borrowed for 24 months after the date the loan closed, and the loan balance forgiveness terms were included in the terms of Happy Rides, Inc. loan agreement if it met the stated job creation and retention requirements. The terms included creating three full-time equivalent (FTE) jobs, with 51% being filled by Target Income Group (TIG) members to meet the forgiveness element. Payments were required for the first 24 months of the loan. If all loan payments were made and jobs were created during the 24 months, the loan could be considered for loan balance forgiveness.
Community Development Services (CDS), the County’s subcontractor for this project monitored Happy Rides, Inc. loan progress and provided the County documentation that Happy Rides, Inc. has met the job retention requirement through payment records, payroll documentation, and employee self-certifications. It is CDS’s determination that Happy Rides, Inc. has provided the necessary documentation, paid the required 24 monthly loan payments, and retained the required jobs. Therefore, the business is eligible for loan balance forgiveness according to the terms of their loan agreement and release of the lien on the property purchased with the loan.
Alternative Action/Motion:
Provide alternate direction to staff.
Strategic Plan Priority Designation: A Thriving Economy
Supervisorial District: All
Vote Requirement: Majority
Supplemental Information Available Online At:
Fiscal Details:
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source of funding: CDBG Grant |
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current f/y cost: N/A |
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budget clarification: N/A |
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annual recurring cost: N/A |
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budgeted in current f/y (if no, please describe): N/A |
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revenue agreement: N/A |
AGREEMENT/RESOLUTION/ORDINANCE APPROVED BY COUNTY COUNSEL: Yes
CEO Liaison: Executive Office
CEO Review: Yes
CEO Comments:
FOR COB USE ONLY
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Executed By: Deputy Clerk |
Final Status: Item Status |
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Date: Date Executed |
Executed Item Type: item |
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Number: |
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