• Ongoing coronavirus / COVID-19 discussion: how is the pandemic affecting your community, workplace, and wellness? 🦠

    Working from home? So are we. Come join us! Cyburbia is a friendly big tent, where we share our experiences and thoughts about urban planning practice, planning adjacent topics, and whatever else comes to mind. No ads, no spam, no social distancing.

Economic development Municipal small business loans

Maister

Chairman of the bored
Staff member
Moderator
Messages
28,637
Points
71
I've been tasked with tracking down forms that cities use for small business loans. Does anyone know of any cities that do that, or where I could go to look for such forms (other than a bank)?
 

mendelman

Unfrozen Caveman Planner
Staff member
Moderator
Messages
13,887
Points
56
I've been tasked with tracking down forms that cities use for small business loans. Does anyone know of any cities that do that, or where I could go to look for such forms (other than a bank)?
Lakewood, OH (1st ring Cleveland suburb) just setup a grant fund/program. You should check that out. I'm it could be adaptable.

http://www.onelakewood.com/city-of-lakewood-announces-small-business-rent-relief-fund/

http://www.onelakewood.com/accordions/lakewood-small-business-grant-program/
 

bureaucrat#3

Member
Messages
56
Points
5
I looked at Lakewood's program as well. They use CDBG funds which we have some available, but we've not been able to get guidance that it would meet the program requirements. Seattle also has a program but the owners have to qualify as low-mod income, which I would think most of our business owners do not qualify for.
 

WSU MUP Student

Cyburbian
Messages
10,572
Points
46
I've been tasked with tracking down forms that cities use for small business loans. Does anyone know of any cities that do that, or where I could go to look for such forms (other than a bank)?
I didn't see this thread until just now. Are you still looking for examples? Our grant and loan deadline passed on Monday but I can send you copies of our applications if you still want them. Just send me your email address in a PM.
 

kjel

Super Moderator
Staff member
Moderator
Messages
12,477
Points
41
I looked at Lakewood's program as well. They use CDBG funds which we have some available, but we've not been able to get guidance that it would meet the program requirements. Seattle also has a program but the owners have to qualify as low-mod income, which I would think most of our business owners do not qualify for.
CDBG is tough to use for small business economic development activities. It's just a high risk activity and rarely ends well during HUD monitoring review or audit. The county received funding from the US Treasury and is using that for small business assistance since it has fewer requirements. HUD has been very slow to issue COVID related funding guidance, we're pouring the bulk of our COVID funding into short term rental assistance for LMI households.
 

bureaucrat#3

Member
Messages
56
Points
5
CDBG is tough to use for small business economic development activities. It's just a high risk activity and rarely ends well during HUD monitoring review or audit. The county received funding from the US Treasury and is using that for small business assistance since it has fewer requirements. HUD has been very slow to issue COVID related funding guidance, we're pouring the bulk of our COVID funding into short term rental assistance for LMI households.
We'll see how it goes. The powers that be wanted small business help with our funds, so we're trying it. The owner has to qualify for LMI and we're requiring an abundance of documents and records. I think most people either won't qualify (make too much) or they won't want to put in the effort. So far its moving much slower than our residential rental/utility assistance for LMI.
 

bureaucrat#3

Member
Messages
56
Points
5
I would add that we've had a main street facade grant program for a few decades that has always been successful. Its funded through CDBG funds and is a 50/50 match, but the limit is fairly low.
 

kjel

Super Moderator
Staff member
Moderator
Messages
12,477
Points
41
I would add that we've had a main street facade grant program for a few decades that has always been successful. Its funded through CDBG funds and is a 50/50 match, but the limit is fairly low.
Facade improvement programs are relatively easy to do with CDBG since the primary activity is construction related. It's other types of expenditures that become problematic due to lack of understanding and lack of adequate recordkeeping.

Qualifying business owners as LMI isn't as problematic as you think if you use the "IRS Form 1040 Adjusted Gross Income" definition of income rather than the more typical "24 CFR Part 5 Annual Income" as there are allowances for expenses and other deductions focusing on the NET income rather than gross like Part 5 does. We use this methodology with our lead hazard control program because we have a lot of two family homes in our housing stock and this gets more folks through.
 
Top