Agenda - 03-24-20; 6-a - Approval of Emergency Small Business Funding Program

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2 o Businesses will be required to provide tax returns. The maximum loan and grant combination available to a small business will be limited to three months of fixed operating expenses. o Loans will be repaid over a five (5) year term. No payments will be due during the first six months of loan origination. o No interest will be changed on loans. o Small business will agree to an auto-draft process for loan payments. FINANCIAL IMPACT: The Emergency Small Business Funding Program is funded using funds originally authorized in the Article 46 Sales Tax Fund for the Small Business Loan Program. Approximately $300,000 is available in this account. These funds will be used for the express purpose of making small business loans and grants to eligible businesses. SOCIAL JUSTICE IMPACT: The following Orange County Social Justice Goal is applicable to this item. • GOAL: ENSURE ECONOMIC SELF-SUFFICIENCY The creation and preservation of infrastructure, policies, programs, and funding necessary for residents to provide shelter, food, clothing and medical care for themselves and their dependents. ENVIRONMENTAL IMPACT: There is no Orange County Environmental Responsibility Goal impact associated with this item. RECOMMENDATION(S): The Manager recommends the Board approve the creation of the Emergency Small Business Funding Program and marketing of this program on the County's website, press release, and social media outlets to communicate available financial support to small businesses impacted by the coronavirus pandemic. The Manager further recommends that an Emergency Small Business Funding Program Committee composed of two representatives each from the Small Business Grant Committee, the Agricultural Grant Committee, and the Small Business Loan (SBL) Board make final determinations between April through June for both grants and loans and that County staff provide status reports to the Board.