HomeMy WebLinkAboutRES 19-172RESOLUTION NO. 19-172
WHEREAS, in 1987, the City of Beaumont received a $500,000.00 grant from
the United States Economic Development Administration (EDA) to establish a Revolving
Loan Fund (RLF) Program; and,
WHEREAS, the EDA grant was matched with Community Development Block
Grant (CDBG) funds initially in the amount of $250,000.00; and,
WHEREAS, interest in the program has decreased and most applicants now
seek loans through the Lamar Small Business Development Center (Lamar SBDC) and
the Southeast Texas Economic Development Foundation (SETEDF); and,
WHEREAS, due to the decrease in the number of applications; and loans
awarded through the RLF Program, EDA is seeking to recover these funds; and,
WHEREAS, recent changes in rules controlling the CDBG portion of the program
has resulted in the City being responsible for the repayment of underperforming loans,
therefore, this portion of the program has been suspended; and,
WHEREAS, City Council is of the opinion that it is in the best interest of the
citizens of the City of Beaumont to remit the balance of $250,000.00 in EDA funds in the
City's Small Business Revolving Loan Fund (RLF) Program to the United States
Economic Development Administration (EDA) and to reallocate the CDBG portion to
other activities in the City's CDBG to be approved by the City Council at a future date;
NOW, THEREFORE, BE IT RESOLVED BY THE
CITY COUNCIL OF THE CITY OF BEAUMONT:
THAT the statements and findings set out in the preamble to this resolution are hereby,
in all things, approved and adopted; and,
THAT the City Manager be and he is hereby authorized to remit the balance of
the United States Economic Development Administration (EDA) funds in the amount of
$250,000.00 in the City's Small Business Revolving Loan Fund (RLF) Program to the
United States Economic Development Administration (EDA).
The meeting at which this resolution was approved was in all things conducted in
strict compliance with the Texas Open Meetings Act, Texas Government Code, Chapter
551.
PASSED BY THE CITY COUNCIL of the City of Beaumont this the 13th day of
August, 2019.
ayor cky Ames -