Res 2012-156 - Laserfiche WebLink

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Highlights of Proposed Changes to the City of San Marcos' Revolving Loan Fund Guidelines December 2012 1. Reduce the minimum loan amount to $10,000 from $25,000 and state that the maximum loan amount will be based on the available fund balance. 2. Change the definition of an Eligible Applicant to delete businesses located in the City's ETJ. 3. Remove "interest free loans for the purchase of land and depreciable property; new construction; and rehabilitation of commercial or industrial facilities and grants for eligible infrastructure" as eligible activities. This leaves the purchase of machinery and equipment and working capital as the only eligible activities. 4. Decrease the maximum amount of time to complete the project to one year (previously 2 to 3 years based on type of project activity funded). 5. Identify the City's current "Citizens Participation Plan" approved for the CDBG Program to be the controlling document for citizen participation for the RLF program. 6. Amend scoring values to ensure that smaller loan amounts may qualify for funding. 7. Revise the review /award process to allow the City Manager to approve applications that meet all program requirements and execute loan documents without taking the application to Council. 8. Council amended the proposed Guidelines to authorize an exemption for existing businesses located in San Marcos who do not fit the definition of a "start up company" to remove the requirement that matching leverage funds be provided at a rate of 50 cents for each one dollar borrowed. Businesses who utilize this exemption will be awarded the minimum points score of 15 under the leverage match category. 9. Council provided direction to staff to utilize all eligible RLF Program Administration funds to offset the cost of program oversight.