Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Finance topic
No spam. Unsubscribe anytime.
Council to consider resolution releasing USDA oversight of revolving loan fund
Summary
Staff told council USDA has offered to relinquish federal interest in the city’s revolving loan fund seeded by a 2015 $99,000 grant; staff will place a resolution on the next regular meeting agenda to accept the release and manage the fund locally.
City planning staff told the Committee of the Whole that the city’s revolving loan fund (RLF), originally seeded by a $99,000 USDA Rural Business Development Grant in 2015 plus $40,000 from local banks, has been revolved and USDA has offered to release federal oversight. John Oliphant said release would return governance of the remaining fund (about $185,000) entirely to the city and would remove federal review of individual future loans.
Oliphant described the RLF as gap financing intended to help projects that cannot fully access private capital; historically two loans used the fund and both have been repaid. He told council the city would continue to be responsible for ensuring loans meet RLF criteria and said staff will return a resolution for council approval on the next regular meeting agenda. Council members asked about the city’s exposure in case of future defaults and staff said there is always risk but that the city has procedures and would be second in line behind bank financing in most RLF arrangements.
Council expressed no objections to placing the resolution on the next agenda.
