8948-17 Authorize Agreement to Operate the Small Business Performance Grant Program

Home Browse Search

• Whether or not the job provides access to health insurance and other benefits; • Whether or not the job provides access to a retirement savings plan; • The race of the person holding the job (retained) or newly hired for the job (created); and • The race of the business owner. TO APPLY, A SMALL BUSINESS MUST DEMONSTRATE /PRESENT THE FOLLOWING: • That the primary operating location of the business is within the city limits of Lakewood; • The name(s), contact information, and principal owner(s) of the Borrower; That annual sales of the business /Borrower do not exceed the established SBA size standards; A detailed description of the Borrower's Project, the cost of the Borrower's Project, sources & uses of project funding, and the number & types of jobs to be created or retained. The Borrower's Project may include start -up operations, working capital, the purchase of machinery & equipment, property or building renovation /expansion; and • The completed Application Form to the City (see Attachment 1 to Exhibit B). TO QUALIFY FOR A PERFORMANCE GRANT A SMALL BUSINESS MUST: • Demonstrate that at least 10% equity from the Borrower is available for the Borrower's Project; • Receive technical assistance (business plan instruction) through the Urban League of Greater Cleveland SBDC; • Qualify for an SBA 7(a) or SBA 504 guaranteed bank loan; and • Commit to meet the City's Forgivable Loan Criteria (see Attachment 1 to Exhibit B). PROCESS: The City will provide a commitment letter to the small business borrower stating that the business is eligible for the Program and a Performance Grant contingent upon completion of the business plan and /or technical assistance provided by the SBDC as coordinated by the Urban League of Greater Cleveland, verification by a participating lender or a certified development company of the Borrower's 10% equity, and the approval of an SBA loan through a participating lender or by a certified development company. A copy of the commitment letter will go to the County, the Urban League of Greater Cleveland, the SBA and the participating bank. If it is a 504 loan, a copy will go to Growth Capital Corporation. 2. Provided the Borrower completes the business plan and /or technical assistance requirement and is approved for either an SBA 7(a) or 504 loan, the City will enter into a forgivable loan agreement with the Borrower that states the Borrower's commitment to the Borrower's Project and the dollar amount of the Borrower's Project, as well as the fact that the Borrower will be II of 17