Loading...
HomeMy WebLinkAbout2020 CON South County Economic Development Corp (SCEDC) - Small Business LoansMEMORANDUM OF UNDERSTANDING THIS MEMORANDUM OF UNDERSTANDING ("Memorandum") is made and entered into as of the 16th day of June, 2020, by and between CITY OF NATIONAL CITY, a [municipal corporation of the state of California} (the "City"), with an address at 1243 National City Boulevard, National City, CA 91950, and SOUTH COUNTY ECONOMIC DEVELOPMENT COUNCIL, a California nonprofit corporation (the "SCEDC"), with an address at 780 Bay Boulevard, Chula Vista, CA 91910. CITY and SCEDC may be referred to individually as the "Party", or collectively, the "Parties". I. MISSION The Parties intend to collaborate on the distribution of up to $200,000 of the City's CARES Act funding. The City has asked the SCEDC to facilitate the distribution of such funds through loans to small businesses with in the City's jurisdictional limits, similar to the loan program administered by the SCEDC to assist restaurants in the South County. II. PURPOSE AND SCOPE The Parties intend for this Memorandum to provide the cornerstone and structure for any and all future contracts being considered by the Parties and which may be related to the program. III. OBJECTIVES The Parties shall endeavor to work together to develop and establish policies and procedures that will promote the program to distribute loans to small business in the City. IV. RESPONSIBILITIES AND OBLIGATIONS OF THE PARTIES The following are the services that the Parties are agreeing to provide for the loan program. SCEDC responsibilities will include: a. Distribution of the City's CARES Act funds up to $200,000 to small businesses within the City's jurisdictional limits pursuant to a loan program to be developed by the SCEDC in collaboration with the City. b. The loan program will be substantially similar to the program administered by the SCEDC and its Finance Committee to provide loans to restaurants in the South County impacted by the COVID-19 pandemic. c. The program will not allow loans to large businesses or any regional or national chains, as defined by the City of National City. 1 d. All loans will be forgivable under the same terms as Paycheck Protection Program ("PPP") loans administered under the CARES Act. e. SCEDC will utilize its existing loan documents for the loan program and such documents will be modified to reflect the terms of forgiveness consistent with PPP loans under the CARES Act. CITY responsibilities will include: a. Allow SCEDC to retain 5% of the principal amount of all loans made as a fee to offset the administrative costs. b. Pay 50% of the marketing/advertising costs to publicize the loans to the business community in the City. V. TERMS OF UNDERSTANDING The term of this Memorandum shall be for a period of 120 days from the date of this Memorandum and may be extended upon written mutual agreement of both Parties. VI. CONFIDENTIALITY The loan applications and all documents submitted for the purpose of evaluating whether applicants meet the requirements for receipt of the loan are confidential and shall be kept in the strictest of confidence by the parties of this MOU. Such documents are submitted by the applicants with the understanding that they are confidential and shall be exempt from disclosure under the Public Records Act. VII. LEGAL COMPLIANCE The Parties acknowledge and understand that they must be able to fulfill their responsibilities under this Memorandum in accordance with the provisions of the law and regulations that govern their activities. Nothing in the Memorandum is intended to negate or otherwise render ineffective any such provisions or operating procedures. The Parties assume full responsibility for their performance under the terms of this Memorandum. If at any time either Party is unable to perform their duties or responsibilities under this Memorandum consistent with such Party's statutory and regulatory mandates, the affected Party shall immediately provide written notice to the other Party and seek to resolve the matter in good faith. VIII. LIMITATION OF LIABILITY No rights or limitation of rights shall arise or be assumed between the Parties as a result of the terms of this Memorandum. 2 IX. NOTICE Any notice or communication required or permitted under this Memorandum shall be sufficiently given if delivered in person or by certified mail, return receipt requested, to the address set forth in the opening paragraph or to such address as one may have furnished to the other in writing. X. GOVERNING LAW This Memorandum shall be governed by and construed in accordance with the laws of the State of California. XI. AUTHORIZATION AND EXECUTION This Memorandum shall be signed by CITY and SCEDC as authorized by their respective Boards and shall be effective as of the date first written above. The CITY and SCEDC hereby agree to the terms, conditions and responsibilities of this Memorandum of Understanding for distribution and administration of small business loans program. CITY OF NATIONAL CITY SOUTH COUNTY ECONOMIC DEVELOPMENT COUNCIL (SCEDC) aulston �ames O'Callaghan City Manager President & CEO 3 RESOLUTION NO. 2020 - 124 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE CITY MANAGER TO EXECUTE A MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF NATIONAL CITY AND THE SOUTH COUNTY ECONOMIC DEVELOPMENT COUNCIL TO ADMINISTER SMALL BUSINESS LOANS TO SUPPORT THE RECOVERY OF LOCAL RETAIL OUTLETS AND RESTAURANTS DEVASTATED BY ECONOMIC IMPACTS FROM COVID-19 WHEREAS, the City Council accepted a Coronavirus Aid, Relief, and Economic Security ("CARES") Act Coronavirus Relief Fund ("CRF") allocation of $1,095,124 from the County of San Diego on June 2, 2020; and WHEREAS, City staff submitted an allocation plan for the funding which included $200,000 for the creation of an Economic Development Recovery Grants to Small Business Program; and WHEREAS, the intent of the program is to provide economic relief and assist at risk business rebound from the economic impacts of COVID-19; and WHEREAS, the City of National City is offering a no -interest loan to National City businesses that will be issued and serviced by the South County Economic Development Council (South County EDC); and WHEREAS, South County EDC will provide a one-time $5,000 no -interest loan with repayment due on April 1, 2021; and WHEREAS, the loan can be converted to a forgivable grant if certain criteria are met. NOW THEREFORE, BE IT RESOLVED that the City Council of the City of National City does hereby authorize the City Manager to execute a Memorandum of Understanding between the silty of National City and the South County Economic Development Council (SCEDC) to administer small business loans to support the recovery of local retail outlets and restaurants devastated by economic impacts from COVID-19. PASSED and ADOPTED this 16th day of June ,2020. ATTEST: q_4,(44r �iL/(.* R. Dal a, t Clerk Michael y APPROVED AS . 0 FORM Alejandra Sotelo Solis, Mayor Passed and adopted by the Council of the City of National City, California, on June 16, 2020 by the following vote, to -wit: Ayes: Councilmembers Cano, Morrison, Quintero, Rios, Sotelo-Solis. Nays: None. Absent: None. Abstain: None. AUTHENTICATED BY: ALEJANDRA SOTELO-SOLIS Mayor of the City of National City, California MICHAEL R. DALLA City Clerk of the City of National City, California By: Deputy I HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of RESOLUTION NO. 2020-124 of the City of National City, California, passed and adopted by the Council of said City on June 16, 2020. rpr City Cler of the City of National City, California By: Deputy CITY OF NATIONAL CITY, CALIFORNIA C z o20 - COUNCIL AGENDA STATEMENT MEETING DATE: June 16, 2020 AGENDA ITEM NO. 27 TEM TITLE: Resolution of the City Council of the City of National City authorizing the City Manager to execute a Memorandum of Understanding between the City of National City and the South County Economic Development Council to administer small business loans to support the recovery of local retail outlets and restaurants devastated by economic impacts from COVID-19. PREPARED BY: Brad Raulston, City Manager Lauren Maxilom, Management Analyst II DEPARTMENT: C APPROVED BY: ana eras Office EXPLANATION: The City Council accepted a Coronavirus Aid, Relief, and Economic Security (CARES) Act Coronavirus Relief Fund (CRF) allocation of $1,095,124 from the County of San Diego on June 2, 2020. City staff submitted an allocation plan for the funding which included $200,000 for the creation of an Economic Development Recovery Grants to Small Business Program. The intent of the program is to provide economic relief and assist at risk business rebound from the economic impacts of COVID-19. The City of National City is offering a no -interest loan to National City businesses. The loans will be issued and serviced by the South County Economic Development Council (South County EDC). South County EDC will provide a one-time $5,000 no -interest loan with repayment due on April 1, 2021. At that time, the entire loan amount will be due. The loan can be converted to a forgivable grant if certain criteria are met. See attached Memorandum of Understanding and loan requirements. FINANCIAL STATEMENT: APPROVED: Finance ACCOUNT NO. APPROVED: MIS The Finance Department will establish grant revenue and expenditure accounts upon receipt of funds from the County of San Diego. ENVIRONMENTAL REVIEW: N/A ORDINANCE: INTRODUCTION: FINAL ADOPTION: STAFF RECOMMENDATION: Adopt the attached resolution authorizing the City Manager to execute the letter of intent with South County Economic Development Council to administer a small business loan program. BOARD / COMMISSION RECOMMENDATION: N/A ATTACHMENTS: 1. Memorandum Of Understanding 2. Resolution 3. Loan Requirements MEMORANDUM OF UNDERSTANDING THIS MEMORANDUM OF UNDERSTANDING ("Memorandum") is made and entered into as of the 16th day of June, 2020, by and between CITY OF NATIONAL CITY, a [municipal corporation of the state of California} (the "City"), with an address at 1243 National City Boulevard, National City, CA 91950, and SOUTH COUNTY ECONOMIC DEVELOPMENT COUNCIL, a California nonprofit corporation (the "SCEDC"), with an address at 780 Bay Boulevard, Chula Vista, CA 91910. CITY and SCEDC may be referred to individually as the "Party", or collectively, the "Parties". I. MISSION The Parties intend to collaborate on the distribution of up to $200,000 of the City's CARES Act funding. The City has asked the SCEDC to facilitate the distribution of such funds through loans to small businesses with in the City's jurisdictional limits, similar to the loan program administered by the SCEDC to assist restaurants in the South County. II. PURPOSE AND SCOPE The Parties intend for this Memorandum to provide the cornerstone and structure for any and all future contracts being considered by the Parties and which may be related to the program. III. OBJECTIVES The Parties shall endeavor to work together to develop and establish policies and procedures that will promote the program to distribute loans to small business in the City. IV. RESPONSIBILITIES AND OBLIGATIONS OF THE PARTIES The following are the services that the Parties are agreeing to provide for the loan program. SCEDC responsibilities will include: a. Distribution of the City's CARES Act funds up to $200,000 to small businesses within the City's jurisdictional limits pursuant to a loan program to be developed by the SCEDC in collaboration with the City. b. The loan program will be substantially similar to the program administered by the SCEDC and its Finance Committee to provide loans to restaurants in the South County impacted by the COVID-19 pandemic. c. The program will not allow loans to large businesses or any regional or national chains, as defined by the City of National City. 1 d. All loans will be forgivable under the same terms as Paycheck Protection Program ("PPP") loans administered under the CARES Act. e. SCEDC will utilize its existing loan documents for the loan program and such documents will be modified to reflect the terms of forgiveness consistent with PPP loans under the CARES Act. CITY responsibilities will include: a. Allow SCEDC to retain 5% of the principal amount of all loans made as a fee to offset the administrative costs. b. Pay 50% of the marketing/advertising costs to publicize the loans to the business community in the City. V. TERMS OF UNDERSTANDING The term of this Memorandum shall be for a period of 120 days from the date of this Memorandum and may be extended upon written mutual agreement of both Parties. VI. CONFIDENTIALITY The loan applications and all documents submitted for the purpose of evaluating whether applicants meet the requirements for receipt of the loan are confidential and shall be kept in the strictest of confidence by the parties of this MOU. Such documents are submitted by the applicants with the understanding that they are confidential and shall be exempt from disclosure under the Public Records Act. VII. LEGAL COMPLIANCE The Parties acknowledge and understand that they must be able to fulfill their responsibilities under this Memorandum in accordance with the provisions of the law and regulations that govern their activities. Nothing in the Memorandum is intended to negate or otherwise render ineffective any such provisions or operating procedures. The Parties assume full responsibility for their performance under the terms of this Memorandum. If at any time either Party is unable to perform their duties or responsibilities under this Memorandum consistent with such Party's statutory and regulatory mandates, the affected Party shall immediately provide written notice to the other Party and seek to resolve the matter in good faith. VIII. LIMITATION OF LIABILITY No rights or limitation of rights shall arise or be assumed between the Parties as a result of the terms of this Memorandum. 2 IX. NOTICE Any notice or communication required or permitted under this Memorandum shall be sufficiently given if delivered in person or by certified mail, return receipt requested, to the address set forth in the opening paragraph or to such address as one may have furnished to the other in writing. X. GOVERNING LAW This Memorandum shall be governed by and construed in accordance with the laws of the State of California. XI. AUTHORIZATION AND EXECUTION This Memorandum shall be signed by CITY and SCEDC as authorized by their respective Boards and shall be effective as of the date first written above. The CITY and SCEDC hereby agree to the terms, conditions and responsibilities of this Memorandum of Understanding for distribution and administration of small business loans program. CITY OF NATIONAL CITY SOUTH COUNTY ECONOMIC DEVELOPMENT COUNCIL (SCEDC) Bradford Raulston James O'Callaghan City Manager President & CEO 3 National City Loan Requirements The City of National City is offering a no -interest loan to businesses in National City to provide some economic relief during these difficult times. The loans will be issued and serviced by the South County Economic Development Council (South County EDC). This infusion of funds is intended to assist National City small businesses during this national emergency. South County EDC will provide a one-time $5,000 no -interest loan with repayment due on April 1, 2021. At that time, the entire loan amount will be due. The loan can be converted to a forgive -able grant if the following criteria are met. Loan criteria is as follows: • Business must be located in National City, CA. • Business must be currently open for business and in compliance with current San Diego County guidelines. South County EDC retains the right to verify this. • Business must be an independent establishment and not part of a franchise or chain • Business owners may not have a financial interest in more than 3 other locations in San Diego County • Please submit a copy of a National City current business license • Owner must provide legal documents reflecting they have the authority to sign a promissory note • Owner must reside in San Diego County and have a California Driver's License and another document that shows proof of residency (for example, residential utility bill, membership card, etc...) • Owner must be willing to sign promissory note and complete an application • Owner will provide South County EDC with a documented proof of how the funds were used. South County EDC reserves the right to share that information. • For loan to be forgiven all monies must be spent and documented prior to December 31, 2020. Monies spent on business rent and utilities will be forgiven up to forty percent of loan amount. The remaining funds can be forgiven if spent on payroll related expenses before December 31, 2020. • Applicants must complete a W-9 IRS form Loan applications can be obtained and completed loan requests submitted via email to: SCEDC@SouthCountyEDC.com SCEDC South County Economic Development Council RESOLUTION NO. 2020 - RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE CITY MANAGER TO EXECUTE A MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF NATIONAL CITY AND THE SOUTH COUNTY ECONOMIC DEVELOPMENT COUNCIL TO ADMINISTER SMALL BUSINESS LOANS TO SUPPORT THE RECOVERY OF LOCAL RETAIL OUTLETS AND RESTAURANTS DEVASTATED BY ECONOMIC IMPACTS FROM COVID-19 WHEREAS, the City Council accepted a Coronavirus Aid, Relief, and Economic Security (CARES) Act Coronavirus Relief Fund (CRF) allocation of $1,095,124 from the County of San Diego on June 2, 2020; and WHEREAS, City staff submitted an allocation plan for the funding which included $200,000 for the creation of an Economic Development Recovery Grants to Small Business Program; and WHEREAS, the intent of the program is to provide economic relief and assist at risk business rebound from the economic impacts of COVID-19; and WHEREAS, the City of National City is offering a no -interest loan to National City businesses that will be issued and serviced by the South County Economic Development Council (South County EDC); and WHEREAS, South County EDC will provide a one-time $5,000 no -interest loan with repayment due on April 1, 2021; and WHEREAS, the loan can be converted to a forgivable grant if certain criteria are met. NOW THEREFORE, BE IT RESOLVED by the City Council of the City of National City does hereby authorize the City Manager to execute a Memorandum of Understanding between the City of National City and the South County Economic Development Council (SCEDC) to administer small business loans to support the recovery of local retail outlets and restaurants devastated by economic impacts from COVID-19. PASSED and ADOPTED this 16th day of June, 2020. Alejandra Sotelo Solis, Mayor ATTEST: Michael R. Dalla, City Clerk APPROVED AS TO FORM: Angil P. Morris -Jones, City Attorney Date: CONTRACT TRANSMITTAL FORM (Attach as cover sheet to Documents dropped off to City Clerk's Office) oG lea 5/r40ea0 From (Dept.): G V: Y M A!z N 91 Submitted by (First & Last Name): E 6 WA G V M e �Z F, Vendor: $Ou.cN GOVµ%Y F,CONON�C QicNF,�,OQN'ENt CAN NEOG G\V `$) Resolution: C ES) / NO Resolution No. (if applicable): .Z0 eZ,0 - ‘'A 0 2 3 4 Originals Provided to City Clerk (circle quantity) Department ha Vendor ha Duplicate Original Copy Duplicate Original F,-tAiti 60 No vr,v.s00?,