Council told Hope Credit Union will not finish loan program; $2M–$3M re-obligated as grants to speed spending

Jennifer Anderson, speaking for staff, told the council that Hope Credit Union — which had been administering a small-business recovery loan program — informed the city it cannot disburse the remaining funds. "Hope Credit Union came to us and said that they wouldn't be able to get the rest of the funding out," Anderson said, and staff proposed re-obligating the remaining dollars into grants to ensure the money is spent before federal/state deadlines.

Anderson said $225,000 of administrative funds had been paid to Hope Credit Union and roughly $75,000 had been disbursed in loans; the remainder of that $225,000 is still with the city unless undisbursed loans proceed. Staff described converting roughly $2 million of the remaining balance to direct grants, with eligibility restricted to businesses that were in operation before Feb. 15, 2020, and not to startups. "Anyone who receives these funds...must get all of their financials put in order first," Anderson said; staff plan to provide accountant assistance through a one-stop small-business service so applicants can complete tax filings and profit-and-loss statements required for award.

Councilmembers asked for the original administration contract with Hope and a full program document describing award sizes and guidelines; staff said those documents will be provided. Council also discussed timetables tied to spending deadlines referenced in the transcript (November/December deadline dates were discussed by council during Q&A). No formal vote to re-obligate funds was recorded in the work session transcript; staff indicated the city will bring program documents and contract materials back to the council for approval and for any required administrative transfers.