(A) There is established the Working Capital Loan Program which may be utilized by existing primary sector businesses to provide short term loans using a businesses' inventory and accounts receivable as collateral.
(B) The Working Capital Loan Program shall be administered by the Department. In the course of the administration, the Department shall:
(1) Provide outreach to existing primary sector businesses, pre-screen applications and provide technical assistance to applicants;
(2) Make available to existing primary sector businesses an application which can be analyzed in a quantitative manner by the Department to determine eligibility and merit for a loan;
(3) Review such applications and present recommendations to the Board for approval or denial of Working Capital Loans;
(4) Maintain all records including, but not limited to, applications for assistance, metrics necessary to describe the program's responsiveness, the number and size of local businesses assisted and the amount of monies distributed; and
(5) Perform monthly reviews of successful applicants which shall track the number of employees, status of inventory, income and expense, aging accounts receivable and any change in financial position.
(C) Existing primary sector businesses that are successful in their application under the Working Capital Loan Program shall be eligible for a loan which equals the lesser of $1,000 for each employee or 70% of eligible accounts receivable. At no time shall the maximum loan amount exceed $25,000.
(D) Monies provided under the Working Capital Loan Program may not be used for any of the following purposes:
(1) To pay any type of personal debt;
(2) To pay delinquent taxes of any kind;
(3) To purchase real property; or
(4) To purchase stocks, bonds or similar investments.
(E) Repayment of monies disbursed under the Working Capital Loan Program shall occur immediately after the existing primary sector business receives payment on its eligible accounts receivable. In the event that such payments towards eligible accounts receivable are not received, then the Department shall provide to the existing primary sector business a repayment plan.
(F) The Department reserves the right to fix an interest rate on monies during the repayment period. Such rate shall not exceed two percentage points below prime; however, if prime falls below 4% then the maximum interest rate allowable shall be 2%.
(Ord. 6578, passed 4-27-09)