Res 2012-156 - Laserfiche WebLink

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INTRODUCTION The San Marcos Revolving Loan Program is a program created as a city financial tool to stimulate economic growth to create or retain jobs within the city. The purpose of this initiative is to set up a revolving loan fund (RLF) to provide capital for private projects which would not be possible without such assistance. The RLF is funded by program income directly generated from the use of Community Development Block Grant and Texas Capital Funds which is a derivative of an original grant through the U.S. Department of Housing and Urban Development. For more information contact: City of San Marcos Community Initiatives Administrator 630 East Hopkins San Marcos Texas 78666 512 - 393 -8147 1hendrix(a�sanmarcostx.gov GOAL AND OBJECTIVE OF THE SAN MARCOS REVOLVING 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 business must create or retain jobs for residents of the City of San Marcos. 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) completes 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 City 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 -Round Rock -San Marcos MSA median income) issued by HUD. The low and moderate income limits are available from the City. ELIGIBLE APPLICANTS Eligible applicants must be existing or start -up businesses located within the City of San Marcos corporate limits. The applicant may be a for - profit or non - profit business. Additional eligibility requirements are found within this document. NOTE: Eligibility does not guarantee f u n d i n g of the loan. GAP FINANCING The RLF program is intended to be a gap financing tool. The applicant must document the "gap" or the need for funds. This includes documentation pertaining to other funding sources that it has tried to access and its inability to complete this project without RLF funds. 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 to make 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