Res 2002-217 - Laserfiche WebLink

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GOAL AND OBJECTIVE OF THE SAN MARCOS REVOL VING LOAN FUND The goal of the San Marcos Revolving Loan Program, as stated in the Housing and Community Development Act of 1974 (as amended), is "the development of viable communities. ..by expanding economic opportunities, principally for persons of low and moderate income." The objective of the program is to expand economic opportunities that create or retain jobs, principally for low and moderate income persons. The objective was contained in the Final Statement and was approved by the U.S. Department of Housing and Urban Development (HUD). This goal is fulfilled through the use of the San Marcos Revolving Loan Program. The business must create or retain jobs for Texans. In order to comply with the national goal of expanding economic opportunities for persons of low and moderate income, a minimum of fifty-one percent (51 %) or more of all the jobs created or retained by the proposed project (business) must be filled by persons who qualify as low and moderate income persons. The business must have each potential employee (created jobs) or each current employee (retained jobs) complete an income certification. The income certifications are used to determine if a minimum of fifty-one percent (51 %) or more of all of the jobs were filled by people who, for the most recent 12 months prior to their employment, had a total family income below the low and moderate income limits for the county where the project occurred. This determination is made by comparing the income certifications and the payroll information for every employee to the Section 8 limits (which equates to a family income of less than 80% of the Austin MSA median income) issued by HUD. The low and moderate income limits are available from the City. ELIGIBLE APPLICANTS Eligible applicants must be businesses located within the corporate city limits, the Extraterritorial Jurisdiction of the City of San Marcos NOTE: Eligibility does not guarantee the loan. GAP FINANCING The City is required to conduct an analysis to determine that the amount of Revolving Loan Program assistance is not excessive, taking into account both the actual needs of the business in making the project financially feasible and the extent of public benefit expected to be derived from the economic development project. The analysis of the business' needs includes evaluating the proposed project costs, verifying and maximizing all private sources of funding, determining the reason for the need for RLF assistance (financing gap ), determining the minimum amount of RLF assistance necessary to stimulate the business' investment, and pricing the RLF loan. The analysis of the extent of public benefit includes reviewing the number and types of jobs to be created/retained (in relation to the needs of low and moderate income and other persons who are likely to be employed or retained for employment), the other development which is likely to be stimulated in the area by the activity, the increase to the tax base including property, sales and income taxes in the area, or the increase in needed services which result from the activity.