A. Goals: Salt Lake City Corporation uses the Economic Development Loan Fund ("ED Loan Fund" or "EDLF", formerly known as Revolving Loan Fund) to increase employment opportunities, stimulate business development and expansion, encourage private investment, promote economic development, enhance neighborhood vitality and commercial enterprise in Salt Lake City (SLC), while maintaining the corpus of the EDLF in a sufficient manner to perpetuate the goals of the program (collectively "goals").
B. ED Loan Fund Program: The Economic Development (ED) Division under the supervision of the Department of Community and Economic Development (CED) administers the Economic Development Loan Fund, develops and administers loan evaluation tools, and tracks the projects participating in the ED Loan Fund Program.
C. Maintain And Review: The ED Loan Fund Executive Order and Program guidelines shall be reviewed at least every six (6) months and reported to the CED Director and/or Review Committee by the ED Division, including an analysis of the ability to maintain the corpus of the fund at sustainable levels, including reporting on the balance of outstanding loans, available balance, total assets, defaults and delinquencies, and projections of at risk loans and the overall sustainability of the fund and/or recommendations to changes to improve the sustainability of the fund, as well as the impact on neighborhoods and City objectives and effectiveness of applications, calculators or tools created to administer the Loan Fund. The ED Division shall also review and present one such review to the Administration and City Council at least annually.
D. Legislative Resolution: The processes and criteria governing the administration of the ED Loan Fund are primarily set forth by the City Council through legislative resolutions. If any conflict exists between these administrative rules and a current legislative resolution, then the legislative resolution will control.
E. Loan Eligibility: Loan eligibility is set forth in the "Loan Criteria" passed by the City Council and more details can be found in the loan application and loan procedures. Generally, to obtain a loan through the ED Loan Fund, proposed loan projects must be financially viable and a legal and properly zoned use. Proceeds of the loan must be used for legitimate business uses, and the business must be within the corporate limits of Salt Lake City or to assist business relocation or expansion into the City. The applicant may be a for profit business or a revenue producing venture of a nonprofit organization. Nonprofit applicants must use loan proceeds as part of a venture, program or project that independent of charitable contributions to the nonprofit creates sufficient cash flow from the venture so as to adequately cover EDLF debt.
F. Additional Loan Fund: The ED Division may determine that additional economic development finance options or loan products are prudent to further the goals and objectives of the City and/or the EDLF. In which case, the ED Director or Loan Committee may forward a recommendation to the Director of CED to seek the City Council's approval to create a new loan category, use of funds, etc., in order to support the purpose of an additional loan or finance product. Such request may include, but not be limited to, additional loan funds, amending use of funds or loan criteria guidelines based on the nature of the risks and opportunities associated with the proposal; the request may be short term in duration or phased out after a certain project period, or run long term, concurrently, and complementary to the EDLF. (2019 Compilation)
A. Loan Committee: The ED Loan Fund Loan Committee (the "Loan Committee" or "committee") is comprised of voting and nonvoting members. A quorum of the committee exists when a simple majority of the committee's voting members are present or vote. However, loan approvals or denials can only be made when a minimum super majority of seven (7) committee evaluations/scores are submitted (see dropping highest and lowest scores in loan evaluation set forth in subsection 59-2-4B of this chapter). The Loan Committee shall approve or deny loans and determine loan amounts, write off loans, determine exceptions to administrative and program rules within the parameters of the loan criteria as approved by the City Council, and approve forbearance and waive fees for more than one year.
1. Voting Members: Voting members are appointed by the Mayor or designee and include the following, or their equivalent and/or designated alternates, which may be appointed simultaneously to act as a voting member in case of an absence:
a. SLC CED Director of Finance;
b. SLC Director of Economic Development;
c. SLC employee, representative at large;
d. SLC representative from the Mayor's or Council's Office;
e. SLC representative from the Division of Housing and Neighborhood Development (HAND);
f. Community representative from the SLC Business Advisory Board (BAB);
g. Community investment representative (non-City employee: mission driven investor or lender, CRA manager, etc.);
h. Community business technical assistance (TA)/entrepreneurship representative (non-City employee: business resource, counseling, college/university, educator, etc.);
i. Community banker (non-City employee, business lending background).
Note: Appointment of members should be considered based on:
Background in economic or community development;
Financial analysis experience (through education or job);
Experience as entrepreneur or private business operator;
Familiarity with the policies and goals of Salt Lake City;
2. Nonvoting Members: Nonvoting members may contribute to committee discussions, but they shall have no voting power and may not cast a vote in connection with any matter that comes before the committee for decision. The following City employees are nonvoting members of the committee:
a. Economic Development Manager/Loan Administrator;
b. Senior City Attorney;
c. Small Business Manager or ED Facilitator;
d. Loan Fund Loan Officer/Analyst;
3. Meetings: The Loan Committee shall set a calendar of scheduled meetings for each calendar or fiscal year. The Chair may call for special committee meetings, modify scheduled meeting times or cancel scheduled meetings if no loans are ready to be presented by providing reasonable notice to affected parties and committee members, and may allow any committee meeting or votes to be conducted electronically.
B. Chair, Officers And Loan Fund Administrator: The Mayor or designee shall appoint a Chair to call for and conduct Loan Committee meetings and assist the Loan Fund Administrator with loan presentations and summaries, including to the Review Committee and other duties as assigned by the Director of CED or ED. The Loan Fund Administrator shall be an employee of the ED Division with duties assigned by the Director of ED and carry out other reasonable duties as requested by the Loan or Review Committees, subject to the Director of ED's supervisory approval. The Mayor or designee may appoint any other officer, such as Vice Chair, Treasurer, Secretary, etc.
C. Review Committee: The CED Director may form a Review Committee. If formed, the duties and procedures of the Review Committee are set forth below. Upon approval or denial of all loans, the Loan Committee will deliver to the Review Committee a summary of the Loan Committee's decision to approve or deny a loan, along with a summary of the loan application. The Review Committee's primary function is to approve loans that were denied by the Loan Committee, or reject or modify loans approved by the Loan Committee, including waiving collateral or personal guarantee requirements. Such approval or denial must take place within five (5) business days of the loan summary being presented to the Review Committee and must be approved by a majority of the Review Committee. If no action is taken by the Review Committee within said five (5) business days, the action taken by the Loan Committee shall become effective. Voting members of the Review Committee, if formed, shall consist of the SLC Directors of: 1) Community and Economic Development (CED); 2) Redevelopment Agency (RDA); and 3) Housing and Neighborhood Development (HAND), or their deputies. The Director of CED shall appoint the Chair, or appoint him or herself as Chair. Nonvoting/ex officio members shall include the CED Finance Director, ED Director and Loan Fund Administrator.
D. Appointment And Removal: All appointments to the Loan Committee shall be made by the Mayor or designee (e.g., CED Director) upon nominations by the nonvoting members of the Review Committee. All non-SLC employee appointees to the committee shall serve for a maximum of five (5) years. All committee appointees may be removed by the Mayor or designee, with or without cause, at any time. (2019 Compilation)
Loading...