Approval of a Resolution to Authorize the City Manager to Adopt and Execute the City of Savannah’s updated Economic Development Administration Revolving Loan Fund (EDA RLF) Administrative Plan, to execute a 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.  Defederalizing the RLF will allow RLF award funds to be used for broader economic development purposes that carry out the economic development purposes of the Public Works and Economic Development Act of 1965, as amended.

On January 27, 2021, the City received notification of the option to defederalize the EDA RLF Award. EDA determined that (1) more than seven years have passed since the final EDA disbursement to the City of funds under the Award, (2) the City has complied with the terms and conditions of the Award, and (3) the City proposes to use the Award Funds for one or more activities that continue to carry out the economic development purposes of the Public Works and Economic Development Act.

The City of Savannah received a Financial Assistance Award from Economic Development Administration (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 Revolving Loan Fund (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 August 2021, amended April 2023, currently pending EDA review and approval.

Approval