Loading...
HomeMy WebLinkAboutExhibit ATHIS FILE IS A SUBSTITUTION. THE ORIGINAL FILE MAY BE SEEN AT THE END OF THIS DOCUMENT. CITY OF MIAMI NCORP 0RRTE0 18 80 DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT Small Business Emergency Loan Program FILE NO. 7376 EXHIBIT A SUB Business Emergency Loan Program ("SBELP") Lending Policies and Guidelines The City of Miami has established a Small Business Emergency Loan Program ("SBELP") Program in accordance with the goals and objectives outlined herein. The SBELP, will be administered by the City of Miami ("City") Department of Housing and Community Development ("HCD"), will be capitalized using Community Development Block Grant ("CDBG") funds authorized under 24 CFR 570. Background On March 1, 2020 the President of the United States declared a national emergency as a result of the Covid-19 pandemic. The State of Florida, by Executive Order 20-52, and the City of Miami State of Emergency required all non-essential businesses to be closed resulting in a loss of revenue and jobs to all types of businesses in the City of Miami. On March 27th, the President signed the Coronavirus Aid, Relief and Economic Security ("CARES") Act which included $350 billion for the Payroll Protection Program (PPP) to small businesses to provide them with operational support so they can maintain their business and continue to hire their employees through this period. The goal of the SBELP is to provide for-profit businesses with financial assistance to allow the business to retain their current low- and moderate -income employees during this crisis by providing assistance for expenditures that are not eligible (or in addition) to be paid under the Payroll Protection Program. Eligible Area The SBELP is available to businesses located within the boundaries of the City of Miami Loans are Evaluated Based on a Project's • Financial viability of business prior to February 15th, 2020 • Potential to retain jobs • Management quality • Ability to repay loan (if it becomes a loan) Eligible Use of Funds and Activities Loan funds can be used for: • Payment of Salaries • Payment of rent or mortgages for the business location • Payment of utilities • Insurance payments • Other Note: The program will allow for some minor repairs to the business. However, depending on the repair, it will take approximately 3-4 weeks before the Department can release any funds to the business or contractor. If the repairs involve any wall penetration with a tool, then it will trigger the Davis Bacon Act. Which will be individually discussed with the business and contractor if construction project occurs. Ineligible Use of Funds Funds cannot be used for the purpose of: • Paying off a creditor or creditors of the applicant who are inadequately secured and are in a position to sustain a loss. • Providing funds for distribution or payment to the owner, partners, or shareholder of the applicant. • Refunding a debt owed to a small business investment company. • Paying of any tax lien or liability. • Refinance loans made by other lenders. • Leasehold improvements • The funds cannot be used for expenditures already paid by another federal, state or local program. Eligibility Criteria A business may qualify for consideration provided it meets the following criteria: • Business is located within the boundaries of the City of Miami. Visit haps://www.miamigov.com/Government/District-MapFind-Your-Commissioner to confirm this. • Business is up to date with all its licensing requirements • Business and/or Principals demonstrate that financing is not otherwise available on terms or conditions that would permit completion and/or successful operation or accomplishment of the project activities to be financed. • Business is an equal opportunity employer. • Project impacts an adequate number of jobs, as defined by 24 CFR 209 (b)(1)(i), to be created and/or retained for low to moderate income people. • The business's ability to repay the loan, if applicable • Applicant must be willing to comply with all regulations, guidelines and policies as they relate to the program. Loan Criteria Job Retention: • At least fifty one percent (51%) of all jobs created or retained must be made available to low and moderate income persons as defined by HUD under Section 8. See updated income limits chart here: htlps://www.miamigov.com/Residents/Housing/Income-Limits-for- Housing_Applications Loan Amount Minimum: $5,000.00 Maximum: $20,000.00 • A HUD environmental review must be conducted and completed prior to disbursing funds. Loan Terms Repayment term shall be as follows: a) No payment will be required if jobs are retained for a minimum of 12 months, otherwise loan will be fully amortized for 5 years with no payment required in the first 12 months. b) Special Circumstances: Longer repayments may be considered on a case by case basis Interest Rates The interest rate for the program will be 1% per annum. Program Requirements: • Commercial Insurance Policies naming the City of Miami as loss payee in an amount acceptable to the City of Miami Risk Department. All policies shall provide the City with mandatory 30 days written notices in cases of cancellation or material change. • The City of Miami may impose late fees if the business does not pay on a timely manner. • If a business does not meet its minimum employment requirements, then the City shall call the loan payable within 30 days. Non -recommended Loans Loans will generally not be recommended for approval for the following reasons: • Applicant has already received funds from the PPP to pay for the same expenses; • If the loan will provide funds for speculation in any kind of property, real or personal, tangible or intangible; • If the applicant is a charitable institution or non-profit enterprise, except for cooperatives which carry on a business activity for the purpose of obtaining pecuniary benefit for their members in the operations of their otherwise eligible small business concern; • If the applicant is a newspaper, book publishing company, magazine, or similar enterprise; • If any of the gross income of the applicant, (or any of its principal owners) is derived from gambling activities, except for those small firms which obtain less than one third of their gross income from income or commission from the sale of official state lottery tickets under a state license; • If the purpose of the loan is to provide funds to an enterprise primarily engaged in the business of lending or investments or to any otherwise eligible enterprise for the purpose of financing investments not related or essential to the enterprise; • If the purpose of the loan is to finance the acquisition of real property or land; • If the Applicant and/or its principals are in default to the City of Miami; • If the Applicant and/or its principals have been debarred from doing business with federal, state, county or local governments; • If the proceeds of the loan will be used for moving an eligible business when the move is solely for the purposes of obtaining the benefits of borrowing from the SBELP Loan Approval Due to the emergency nature of this program, loans will be approved by HCD to ensure that the loan meets the terms of this policy and all CDBG regulations governing such activities. Loans will be approved on a first come, first ready basis. Appeals. Applicants can appeal decisions made by HCD, within five (5) business days of being notified by HCD, to the Department Director who will review the loan application and make a decision within 5 business days of receipt. SUBSTITUTE. CITY OF MIAMI DEPARTME CO INC ORP ORRTE0 18 86 OF HOUSING AND DEVELOPMENT Small Business Emergency Loan Program SUBSTITUTE. Business Emergency Loan Program ("SBELP") Lending Policies and Guidelines The City of Miami has established a Small Business Emergency Loan Pr gram ("SBELP") Program in accordance with the goals and objectives outlined herein. e SBELP, will be administered by the City of Miami ("City") Department of Housing and Co munity Development ("HCD"), will be capitalized using Community Development Blockrant ("CDBG") funds authorized under 24 CFR 570. Background On March 1, 2020 the President of the United States declared a tional emergency as a result of the Covid-19 pandemic. The State of Florida, by Executive O der 20-52, and the City of Miami State of Emergency required all non-essential businesses to b closed resulting in a loss of revenue and jobs to all types of businesses in the City of Miami. O March 27th, the President signed the Coronavirus Aid, Relief and Economic Security ("CARE ') Act which included $350 billion for the Payroll Protection Program (PPP) to small businesse to provide them with operational support so they can maintain their business and continue to hi their employees through this period. The goal of the SBELP is to provide for-profit businesses ith financial assistance to allow the business to retain their current low- and moderate-inco employees during this crisis by providing assistance for expenditures that are not eligibl (or in addition) to be paid under the Payroll Protection Program. Eligible Area The SBELP is available to businesses Loans are Evaluated Based • Financial viability of • Potential to retain jobs • Management quality, within the boundaries of the City of Miami a Project's prior to February 15th, 2020 • Ability to repay 1 (if it becomes a loan) Eligible Use of unds and Activities Loan funds canhe used for: • Pay ent of Salaries • P ment of rent or mortgages for the business location • ayment of utilities Insurance payments SUBSTITUTE. • Other Note: The program will allow for some minor repairs to the business. However, depending o the repair, it will take approximately 3-4 weeks before the Department can release any fund to the business or contractor. If the repairs involve any wall penetration with a tool, then it w' trigger the Davis Bacon Act. Which will be individually discussed with the business and c tractor if construction project occurs. Ineligible Use of Funds Funds cannot be used for the purpose of: • Paying off a creditor or creditors of the applicant who are a position to sustain a loss. • Providing funds for distribution or payment to the owner, applicant. • Refunding a debt owed to a small business investment c n • Paying of any tax lien or liability. • Refinance loans made by other lenders. • Leasehold improvements y secured and are in , or shareholder of the • The funds cannot be used for expenditures ready paid by another federal, state or local program. Eligibility Criteria A business may qualify for it meets the following criteria: • Business is located witbk the boundaries of the City of Miami. Visit ht s://www.miami ov.co ovemment/District-Ma Find -Your -Commissioner to confirm this. • Business is up to date th all its licensing requirements • Business and/or Pri ipals demonstrate that financing is not otherwise available on terms or conditions that ould permit completion and/or successful operation or accomplishment of the project ac ' ities to be financed. • Business is a equal opportunity employer. • Project im acts an adequate number of jobs, as defined by 24 CFR 209 (b)(1)(i), to be created /or retained for low to moderate income people. • The b iness's ability to repay the loan, if applicable • Ap icant must be willing to comply with all regulations, guidelines and policies as they r ate to the program. SUBSTITUTE. Loan Criteria Job Retention: • At least fifty one percent (51%) of all jobs created or retained must be made a ilable to low and moderate income persons as defined by HUD under Section 8. See up ted income limits chart here: ht s://www.miami ov.com/Residents/Housin /Inco e-Limits-for- Housing_Applications Loan Amount Minimum: $5,000.00 Maximum: $20,000.00 • A HUD environmental review must be conducted aid completed prior to disbursing funds. / Loan Terms Repayment term shall be as follows: a) No payment will be required if jobs are ret ed for a minimum of 12 months, otherwise loan will be fully amortized for 5 years wi no payment required in the first 12 months. b) Special Circumstances: Longer repayingfits may be considered on a case by case basis Interest Rates The interest rate for the program will be /T% per annum. Program Requirements: • Commercial Insurance Yolicies naming the City of Miami as loss payee in an amount acceptable to the City,9f Miami Risk Department. All policies shall provide the City with mandatory 30 days Yitten notices in cases of cancellation or material change. • The City of Miam/may impose late fees if the business does not pay on a timely manner. • If a business d96s not meet its minimum employment requirements, then the City shall call the loan pay e within 30 days. Non-recomolended Loans Loans will gnerally not be recommended for approval for the following reasons: •plicant has already received funds from the PPP to pay for the same expenses; • If the loan will provide funds for speculation in any kind of property, real or personal, tangible or intangible; SUBSTITUTE. • If the applicant is a charitable institution or non-profit enterprise, except for cooperz which carry on a business activity for the purpose of obtaining pecuniary benefit for members in the operations of their otherwise eligible small business concern; , • If the applicant is a newspaper, book publishing company, magazine, or similar enterprise; • If any of the gross income of the applicant, (or any of its principal owners) is dyfived from gambling activities, except for those small firms which obtain less than one ird of their gross income from income or commission from the sale of official stat ottery tickets under a state license; • If the purpose of the loan is to provide funds to an enterprise prim ily engaged in the business of lending or investments or to any otherwise eligible ente rise for the purpose of financing investments not related or essential to the enterprise; • If the purpose of the loan is to finance the acquisition of real prXperty or land; • If the Applicant and/or its principals are in default to the CiX of Miami; • If the Applicant and/or its principals have been debarred f om doing business with federal, state, county or local governments; • If the proceeds of the loan will be used for moving eligible business when the move is solely for the purposes of obtaining the benefits of orrowing from the SBELP Loan Approval Due to the emergency nature of this pro ram, any loan will be approved by a three -(3) member Loan Committee to be establi ed by the Director of Housing and Community Development to ensure that the to meets the terms of this policy and all CDBG regulations governing such activitie . Members of the Loan Committee will meet virtually within 72 hours of the receipt of completed application. Loans will be approved on a first come, first ready basis. Appeals. Applicants can appeal cisions made by the Loan Committee within five (5) business days of being notified by Oe committee to the Department Director who will review the loan application and maye a decision within 5 business days of receipt.