Title
AN ORDINANCE AUTHORIZING THE CITY MANAGER TO ENTER INTO AN AGREEMENT WITH THE HUDSON COMMUNITY IMPROVEMENT CORPORATION FOR A COVID-19 SMALL BUSINESS RELIEF LOAN PROGRAM AND APPROPRIATING FUNDS THEREFOR.
Brief Description: This Ordinance will authorize the COVID-19 Small Business Relief Loan Program through the Hudson Community Improvement Corporation (HCIC).
Body
Legislative History
No legislative history for the loan program. Resolution 20-45 authorized the City Manager to implement a temporary small business utility relief program due to the COVID-19 pandemic.
Purpose & Explanation
The purpose of this ordinance is to establish a loan program to assist small businesses that have been significantly impacted by the COVID-19 crisis to re-open or replenish perishable inventory. To be eligible, a business must have 20 or less full-time employees (or full-time equivalents) or total annual business revenue of $2,000,000 or less for the most current fiscal year-end.
If adopted by Council, the City would grant up to $300,000 to the Hudson Community Improvement Corporations (CIC). The CIC would then loan out the money to eligible businesses. By law, the City is unable to make these types loans to private companies and therefore will utilize the CIC to facilitate the loan program.
There are two types of loans. The basic terms are as follows:
Part A:
- Purpose: provide cash to restock perishables (e.g. restaurants and grocery stores)
- Max loan amount: $10,000 per business
- Term: 3 years, 0% interest
Part B:
- Purpose: provide cash for general re-opening costs
- Max loan amount: $3,000 per business
- Term: 3 years, 0% interest
Legal Authority for Proposed Legislation
Pursuant to Charter Section 6.04, Contracts & Purchasing:
Competitively bid and advertised for two consecutive weeks; bid tab attached: [Yes/No/NA])
Joint or Cooperative Purchase Program
Professional Services
Other [provide explanation]
Fiscal Impact
Currently Budgeted (Account #, $...
Click here for full text