Laserfiche WebLink
EXHIBIT A <br />LAKEWOOD -SBA SMALL BUSINESS PERFORMANCE GRANT <br />PROGRAM <br />SCOPE AND PROCESS OF THE PROGRAM <br />PURPOSE: <br />• To foster and accelerate small business entrepreneurship through startups and expansions <br />within the City of Lakewood ( "City'); thus promoting the growth of these businesses and <br />creating new jobs for the community. <br />• To provide funds to attract or maintain small businesses, including, but not limited to, those <br />businesses that need to close a financing gap due to its lack of sufficient cash resources to <br />qualify for conventional bank financing, by providing these entrepreneurs with a performance <br />grant in the form of a forgivable loan (i.e. Performance Grant), as well as providing technical <br />assistance from a program- dedicated, SBA - certified Small Business Development Center <br />(SBDC). <br />With a performance grant/forgivable loan from the Lakewood - Cuyahoga Credit Enhancement <br />Fund, coupled with technical assistance from the SBDC, the combined assistance is <br />structured to achieve an SBA - guaranteed bank loan for the small business. <br />DESCRIPTION OF THE BASIC PROGRAM: <br />• The qualifying small business borrower (the "Borrower ") provides the City with a detailed <br />description of its start -up business plan or expansion project (the "Borrower's Project "). <br />• The business will be required to identify the 10% equity that it will be contributing to the <br />Borrower's Project. <br />• The City will assist the business in applying to a bank for an SBA guaranteed loan for the <br />Borrower's Project. <br />• The Lakewood - Cuyahoga Credit Enhancement Fund will provide cash in the form of a <br />performance grant /forgivable loan (the "Performance Grant ") for 15% of the Borrower's <br />Project cost up to a maximum amount of $50,000. <br />• The remaining amount (i.e. 75 %) will be provided through an SBA - guaranteed bank loan. The <br />City's performance grant/forgivable loan is subordinated, put on standby, and forgiven over a <br />specified period. <br />• The Borrower is also required to obtain technical assistance through the Small Business <br />Development Centers as coordinated by the Urban League of Greater Cleveland. <br />The Borrower is required to provide the following information to the City on each job created and <br />retained: <br />■ Rate of pay (hourly wage and usual number of hours worked per week; <br />10 of 17 <br />