Report to Mayor and City Council
Tuesday, June 21, 2022
Consent
SUBJECT:
Title
CONSIDER RESOLUTION NO. 22-135, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARSON, CALIFORNIA, APPROVING (1) FORGIVENESS OF ALL LOANS GIVEN TO SMALL BUSINESSES IN RESPONSE TO THE COVID-19 PANDEMIC, (2) REIMBURSEMENT OF LOAN PAYMENTS ALREADY PAID, AND (3) FORM OF TERMINATION AGREEMENT TERMINATING LOAN DOCUMENTS USING AMERICAN RESCUE PLAN ACT OF 2021 FUNDS
Body
I. SUMMARY
On April 13, 2020, the Disaster Council approved a contract with the California Community Economic Development Association ("CCEDA"), a California non-profit organization, to quickly create and implement a focused business assistance program for Carson businesses, with a special emphasis on the COVID-19 response and accessing funding through federal programs offered through the Small Business Administration. At the same meeting, the Disaster Council considered the establishment of a $500,000 Small Business Loan/Grant Program ("Program"). On April 21, 2020, the City Council approved the establishment of the Program to assist small businesses in Carson withstand the economic impacts of the COVID-19 pandemic and associated lockdowns and appropriated the necessary funds.
On March 15th, 2022, City Council approved disbursement plan of $17.7 million in American Rescue Plan Act (ARPA) funds. In the plan, $765,000 was allocated for Small Business Loan Forgiveness and Loan Reimbursement, with the intention of forgiving all loans in the program. This report includes the resolution for the City Council to adopt to actually forgive the loans and making the findings of public purpose behind the forgiveness, and a description of the process staff would take to notify borrowers and work through the legal issues.
II. RECOMMENDATION
Recommendation
1. APPROVE Resolution No. 22-135, "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARSON, CALIFORNIA, APPROVING (1) FORGIVENESS OF ALL LOANS GIVEN TO SMALL BUSINESSES IN RESP...
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