Res 2002-217 - Laserfiche WebLink

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*Selection Procedures - The Revolving Loan Program applications are reviewed by the City Manager after they have been scored by staff of the City of San Marcos. The City Manager shall make recommendations to the City Council for final award. The application and selection procedures consist of the following steps: (1) Each potential applicant must submit a complete application to the City of San Marcos CDBG Coordinator. (2) Upon receipt of an application, the City staff will perform an initial review to determine whether the application is complete and whether the activities proposed are eligible for funding. In those instances where the City staff determines that the application is either incomplete or that the activities are ineligible for funding, the application is returned to the applicant to complete. The City will then conduct a review of each complete application to make threshold determinations with respect to: (A) the financial feasibility of the business to be assisted based on a credit analysis; (B) the strength of commitments from all other public and/or private investments identified in the application; (C) whether the use of Revolving Loan Funds is appropriate, as defined below, to carry out the project proposed in the application. i. the business can raise only a portion of the debt and equity funds necessary to complete the project. A gap between sources and uses exists and Revolving Loan Funds fill the gap; ii. the business cannot raise any portion of the debt necessary to complete the project; however, the other funds/Revolving Loan Fund ratio must not be less than 1 :1. A gap between sources and uses exists and Revolving Loan Funds fill the gap, or; iii. the business can raise sufficient debt and equity to complete the project, however, the cost of such debt cannot be serviced by the business or the costs of such debt cannot be serviced in order for the business to achieve a rate of return comparable to industry standards. (D) whether there is evidence that at least 51 % of the permanent jobs created or retained will benefit low and moderate income persons. (3) The City staff generates scores on selection criteria related to leverage ratio, cost per job, community fit, and project feasibility. Scores on factors in these categories are derived from information provided by the applicant. An applicant must receive at least 60 points out of a possible 100 points to be considered for funding. An applicant that receives at least 60 points on such criteria may be invited to send a representative to make a presentation to the City Council. The following is an outline of the selection criteria used by the City for the selection of projects under the Revolving Loan Fund. (A) Leverage Ratio (Maximum Points 30) The all other funds/RLF ratio must not be less than 1 :1. For the 1:1 match, all other funds are defined as all other sources of funds for the project as reflected on the Sources and Uses of Funds Form, with the exception of any other HUD monies. HUD money includes program income. Refinancing of other funds may be included as leverage on a case-by-case basis (if the refinancing provides more favorable terms for the borrower). Refer to the following program requirements for