AGENDA TITLE:
title
Adopt a Resolution Authorizing the City Manager to Execute Amendment No. 1 to the Agreement for Professional Services with California Capital Financial Development Corporation to Provide Additional Time to Perform Marketing, Underwriting and Administration of the Lodi Hometown Microloan Program (ED)
end
MEETING DATE:
November 20, 2024
PREPARED BY:
Luis Aguilar, Economic Development Director
recommendation
RECOMMENDED ACTION:
Adopt a resolution authorizing the City Manager to execute Amendment No. 1 to the Agreement for Professional Services with California Capital Financial Development Corporation to provide additional time to perform marketing, underwriting and administration of the Lodi Hometown Microloan Program.
body
BACKGROUND INFORMATION:
On November 15, 2023, by Resolution No. 2023-253, the Lodi City Council approved an Agreement for Professional Services with California Capital Financial Development Corporation for the underwriting and administration of the Lodi Hometown Microloan Program. The City Council also authorized an expenditure not to exceed $450,000 to fund the program. The Agreement was for a one-year term commencing on November 29, 2023.
The Lodi Hometown Microloan Program provides business loans of up to $50,000 to entrepreneurs and small business owners with ten or fewer employees who have experienced barriers to traditional sources of capital. These loans are available to applicants located within the Lodi City limits. The Lodi Hometown Microloan Program aligns with the City Council's Strategic Vision by providing economic growth opportunities to Lodi's small businesses.
There are two components to the Lodi Hometown Microloan Program; a fee-based approach and a leveraged capital approach. The fee-based approach provides $340,000 in City-funded capital, with principal and interest payments contributing towards a revolving loan fund for future business loans. The leveraged capital approach pro...
Click here for full text