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Home My WebLink About2020-R-6A COVID-19 Response Services-Sustainable Local Small Business Loan Program RESOLUTION NO. 2020-R- 1 BEFORE THE COMMON COUNCIL FOR THE CITY OF JEFFERSONVILLE, INDIANA COVID-19 RESPONSE SERVICES- SUSTAINABLE LOCAL SMALL BUSINESS LOAN PROGRAM AN EMERGENCY ORDINANCE ESTABLISHING THE PROCEDURE AND PROCESS FOR THE EXPENDITURE OF FUNDS APPROPRIATED FOR THE PURPOSE OF PROVIDING SMALL BUSINESS LOANS TO CONTRIBUTE TO THE SUSTANABILITY OF LOCAL BUSINESSES NECESSARY AND DIRECTLY RELATED TO THE COVID-19 PANDEMIC WHEREAS, the City of Jeffersonville (the "City") operates, maintains, oversees and is responsible for the budgeting, appropriation and payment of claims to insure the services, safety, well being and of the citizens of Jeffersonville; WHEREAS, the COVID-19 virus is a pandemic that has increased the necessity and need of the City's private business sector as well as those employed by those businesses and impacted by those businesses. ; WHEREAS, the City's tax revenues are derived from many sources. However, among the most significant are property tax revenues and Local Occupational Income Tax revenues. WHEREAS, if local, small business are unable to pay their mortgage or rent upon their storefronts' and are unable to remain operational and pay wages to their employees, the ability of the City to collect those essential revenues from property taxes and income taxes will be eliminated. THEREFORE, it is in the best interest of the City to engage in every effort possible to continue to breathe life into the local, small business community. In order to do so, the City has determined that it is economically feasible to appropriate Two Hundred and Fifty Thousand Dollars ($250,000) to be used for the purpose of granting forgivable loans to support forward-facing public businesses hardest hit by the COVID-19 crisis. These businesses are defined as locally owned and operated sit-down restaurants, bars, entertainment venues, boutiques, retail, salons and barbershops. This is not an exhaustive list however, it is an illustrative list of those businesses that this legislation is intended to assist. 1 HENCE, the in order to effectuate this program and to insure that it is operated in a fair and transparent manner the City SHALL partner with One Southern Indiana and THEY shall be bound by the process and procedure as set forth in the attached EXHIBIT "A" and entitled: Jeffersonville Sustains- PROJECT and TIMELINE. NOW, THEREFORE, BE IT ORDAINED by the Common Council of the City of Jeffersonville, Indiana, as follows: 1. That the Council shall appropriate TWO HUNDRED AND FIFTY THOUSAND DOLLARS ($250,000) from what is commonly referred to as the City's RAINY DAY FUND. 2. The initial amount of ONE HUNDRED EIGHT THOUSAND SEVEN HUNDRED AND FIFTY DOLLARS ($108,750) shall be distributed to One Southern Indiana. This shall represent One Hundred Thousand Dollars ($100,000) for the initial payment of loans to those eligible businesses and Eight Thousand Seven Hundred and Fifty ($8,750) payment to One Southern Indiana for administration of the sustainable loan program. 3. The balance of One Hundred and Fifty Thousand ($150,000) shall remain in the City's funds until that time that it is determined that there is a necessity to utilize these additional funds to provide loans to additional eligible applicants. 4. The One Southern Indiana, subsequent to the exhaustion of the first One Hundred Thousand Dollars ($100,000) shall immediately submit a claim for additional funds to the Jeffersonville City Clerk (hereinafter "Clerk") for the amounts necessary to fund eligible loans. The Clerk, upon verification of the claim, shall submit a request for the Controller to issue the check to One Southern Indiana pursuant to the procedure adopted pursuant to attached Exhibit"A". 5. The Controller shall be authorized to remit payment for these claims immediately in accordance with the procedures adopter heretofore in matters deemed emergency matters related to the necessities created by the COVID-19 crisis. PROCESS AND PROCEDURE FOR REQUESTING FUNDS FROM THE COVID-19 RESPONSE APPROPRIATION: A. Those eligible and interested local business shall submit themselves to the process as set forth in attached "Exhibit "A"". 2 B. Upon approval of eligibility pursuant to Exhibit "A" the claims submitted SHALL be paid directly to the entities approved. C. After ANY claim has been submitted to the Clerk, the Clerk shall, in a regular and timely manner as agreed upon, submit same to the City Controller for issuance of a check to the entity approved. This Resolution shall be in full force and effect from and after its passage and approval. VOTED YES: VOTED NO: Ma b1.t) _S(Oleci a-Inca 47'4.3+ • Resolution No. 2O O-R- (,P presented by me as Clerk to the Mayor of said C City of Jeffersonville at '2 05pm. on this day of May , 2020. Lisa Gi I, City CI k Resolution No. 2020-R- pr v d and sig d by me at m. on this t day of tMO.), , 202 . _ ..------ Mike Moore, ayor 3 � �� _ Akt�� _�� °~~ « «� Jeffersonville Sustains_ PROJECT and TIMELINE Jeffersonville Sustains Loan Program isa forgivable loan program created tm support those forward- facing pub|icbusinessmshanJemthit bw the COV|D+19 crisis: locally owned and operated sit-down restaurants, bars, entertainment venues, boutiques, retail, salons and barbershops. For further delineation, see eligibility guidelines onapplication. 8igib|ebus|nensmsrnustbe "brickandnnortar°andbwab|etoshovvanexisting and current lease agreement, building loan agreement, or building ownership. Businesses that have received funds from the forgivable loan program initiated in March 2020 by and between the Caesars Foundation of Floyd County, the Community Foundation of Southern Indiana, and One Southern Indiana (called the COVID- 19 Small Business Emergency Forgivable Loan program) are not eligible. Due to the emergency nature of the COVID-19 pandemic and its increasingly negative economic impact on small businesses in Jeffersonville, the loans in this program will become forgivable should the business remain open through the life mf the loan. Forgivable loans would be available for businesses uptm $5"000. Recipients will begin repayment in October 2O2O, paying $lOO per month.The payments will be made through December 3O31. At that time, and with all guidelines met, the remainder of the loan will be forgiven. In the interest mftime and efficiency,the processes for application, loan approval and loan closing will be streamlined and, as much as possible, virtual. Funds will be awarded based on demonstrated need and must be used exclusively for overhead expenses for up to 2 months(i.e., rent, utilities). In addition to funds being awarded to cover overhead expenses, the applicant may also apply for a$250/full-time employee stipend to be passed through to the employees.Applications are required to include supporting documentation to demonstrate need 0.e., rental/mortgage agreement, utility bills),The Jeffersonville Sustains Committee will determine funding eligibility and will review applications and require documentation explaining the need and proposed use of funds from the business oxxner/n\. The Jeffersonville Sustains Committee reserves the right to offer a lesser amount based upon application, need and funds available for lending. Initial Contribution Jeffersonville City Council—$250,000, restricted to Jeffersonville businesses Partners One Southern Indiana —loon management, administrator, vehicle for lending City of Jeffersonville—in/tio/funder , Recouved PnmzmmmnFmndUnR Repayments will be collected from loan recipients via ACH (as set up during the loan closing process). Funding recouped by 1si, either through partial or total loan repayment, shall be kept inafund available for disbursement to Jeffersonville Businesses in the event of a future State ofEmergency declared by the President or Indiana Governor. =V Timeline Program Guidelines and 04/30 Owen, Maples, White, Burns Documentation Initial Funding Dedicated by City Day 1 City Council Council Funding Transferred to 1si Day 2 City/isi Loan Review Committee Convened Day 2 City/lsi Press Release Sent Out Day 2 (7:00 a.m.) Suzanne, Wendy, City Council Application window opens Day 2 (7:00 a.m.) Lisa and Matt H. Applications received and Day 2—Day 8 Lisa and Matt H. catalogued for processing Application window closes Day 8 (5:00 p.m.) Lisa and Matt H. Committee begins review, Lisa and Loan Review Day 9—Day 12 discussion and votes Committee Applicants are notified Day 13 Lisa and Elizabeth Funds dispersed Beginning Day 13-18 Elizabeth Press Release Sent Out Day 19 (7:00 a.m.) Suzanne, Wendy, Council Who is Eligible? • Small, Forward-facing public businesses hardest hit by COVID-19 crisis o Small, locally owned businesses(sit-down restaurants, bars, entertainment venues, boutiques, retail, salons) o Businesses operating within Jeffersonville, Indiana o Businesses with less than 50 FTEs(full time employees) Who is Not Eligible? • Businesses that have received funds from the forgivable loan program initiated in March 2020 by and between the Caesars Foundation of Floyd County,the Community Foundation of Southern Indiana,and One Southern Indiana (called the COVID-19 Small Business Emergency Forgivable Loan program)are not eligible • Business with established drive-thru service as a part of their normal operation • Businesses with more than 50 FTEs(full time employees) • Businesses outside of Jeffersonville, Indiana • Businesses owned by,or in a partnership agreement with, a member of the Jeffersonville City Council. Review Committee Applications shall be received and reviewed by 1si. Final review, discussion,and vote shall be taken prior to funding loans by the Jeffersonville Sustains Committee. • The Jeffersonville Sustains Committee to consist of 3 appointment from Jeffersonville City Council, 2 appointments of isi Executive Committee 1h ..li ', H In li Z 1 - Q 0 a W H O �/ i , be CC 1 J ‘41 a LU ti CC qQ 0 A W c4 o 1 v 0 U. UJ 4.0 k�XX C 1 00 in O O O (NI /7 I U.S o CC N CCm W z J C MW- Z N flflh z p Z 0 0 0 0 0 0 0 0 CC _# L L L L L L L L-' - � c°7. fl. a. o. aaaa Z W C C C C C C C C C D H