HomeMy WebLinkAboutcover memoCITY OF MIAMI, FLORIDA
INTER -OFFICE MEMORANDUM
TO :
FROM :
The Honorable and
bers of e,.Gity Co
Jo:( rriola
Ci anager
DATE:
SUBJECT:
REFERENCES:
ENCLOSURES:
AUG 2 3 2004
FILE :
Transfer of CDBG funds from
Small Business Opportunity
Center, Inc., District 3 & 4 to
CAMACOL Loan Fund, Inc.
City Commission Meeting
July 22, 2004
RECOMMENDATION:
It is respectfully recommended that the City Commission adopt the attached Resolution,
with Attachment(s) authorizing the transfer of Community Development Block Grant
(CDBG) funds from the Small Business Opportunity Center, Inc. (SBOC), District 3 in
the amount of $50,000 and District 4 in the amount of $45,000, for a total amount of
$95,000, and allocating said funds to CAMACOL Loan Fund, Inc. for the purpose of
administering a small business loan program.
BACKGROUND:
Resolution No. 04-378 adopted on June 10, 2004 appropriated $400,000 for Economic
Development to Small Business Opportunity Center, Inc. As a major component of
Economic Development, obtaining access to capital continues to be an integral to growth
and job creation to our City's small business entrepreneurs.
According to a market study conducted by Roslow Research Group, there is a significant
need for lending services in the Miami area, most specifically micro lending.
The study found that:
• There are 77,500 micro enterprises (businesses with five or fewer employees) in
Miami, many of which are owned by women and minorities.
• 88 percent of these micro entrepreneurs have never received a bank loan because
they have poor or no credit history, or are intimidated by a lengthy approval
process.
• Existing micro lenders in the Miami -Dade area are serving only 0.5 percent of
micro entrepreneurs.
The Latin Chamber of Commerce of the United States, known as CAMACOL, is a very
well respected Hispanic organization in the State of Florida and one of the largest
chambers of commerce within the nation. They are involved in a wide spectrum of
projects and services encompassing as part of its membership small minority business
owners, CAMACOL Loan Fund, Inc. is one of the few lending institutions making loans
with their own funds to high risk businesses, charging low interest rates and working with
loan applicants to ensure their success.
Our funding assistance will enable CAMACOL Loan Fund, Inc. to obtain additional
funding from Miami -Dade County to make these loans.
It is recommended that the City Commission adopt the attached Resolution, with
Attachment(s), authorizing the transfer of CDBG funds from SBOC, District 3 & 4 for a
total amount of $95,000 and allocating said funds to CAMACOL Loan Fund, Inc. for the
purpose of administering a small business loan program.
The proposed Resolution does not have a budgetary impact on the General Fund.