Staff is requesting approval to recapitalize the Community Development Block Grant (CDBG) Revolving Loan Fund Guarantee (RLFG) loan program administered by the Small Business Assistance Corporation (SBAC) in the amount of $146,000 to sufficiently support existing and future guarantee loan commitments.

Additionally, staff is requesting authorization to amend program guidelines as follows: 1) lower the local reserve requirement for the guarantee funds from 35% to 10%, which would allow for additional lending capital and conform to the conservative reserve guidelines of mid-size banking institutions. The reduced requirement would allow for greater leveraging, ensure that participants are protected in default events, and provide additional funding opportunities to businesses and guarantee participants. 2) redefine the RLFG project area to include other priority corridors and incentive zones along with the Martin Luther King Jr. Boulevard and Montgomery Street corridors.
 

Approval