Approval of a Resolution to Authorize the City Manager to Request to Defederalize the City’s RLF Award #04-39-04101, and to execute an “Agreement to Release” the EDA Federal Interest in the Revolving Loan Fund consistent with the requirement of the Reinvigorating Lending for the Future Act (Pub. L. 116-192). The Reinvigorating Lending for the Future Act (the Act) authorizes EDA to release its federal interest in certain RLF awards that have operated satisfactorily for seven years beyond disbursement of grant funds.

The Economic Development Administration is in receipt of the City of Savannah’s recent request to defederalize the EDA RLF which was approved by Council on November 9, 2023. The initial request included multiple economic development strategies that aligned with the Coastal Georgia Comprehensive Economic Development Strategy and priorities outlined in the City’s 5-Year Housing and Community Development Plan. However, for the purpose of requesting defederalization, the EDA requests the City limit the scope of use to operating the City’s Small Business Development Program’s Revolving Loan Fund. Limiting the scope of use requires a new resolution approved by council; therefore, a second resolution requesting approval to defederalize the EDA RLF was added to the January 25, 2024 agenda to meet the EDA requirement.

The City of Savannah received the Financial Assistance Award from EDA in 1995 in the amount of $750,000 with a share of cost in the amount of $250,000 from CDBG funds for a total of $1,000,000. The federal funding provided by this Award and the City’s CDBG 25% match are used to capitalize a RLF to promote business development; to encourage business growth and economic opportunity, the RLF program offers below-market working capital and fixed asset financing to independently owned and operated for-profit small businesses and entrepreneurs located in the target area. The City operates the RLF Project in accordance with the RLF Plan due every 5 years with the most recent submission in November 2023, approved by EDA.

Approval