Title
Human Services Department requesting conceptual approval to submit one or more Economic Development Block Grant Over-The-Counter Component application(s) to the California Department of Housing and Community Development for up to $2,500,000 for one-year grant(s)or up to $5,000,000 for two-year grant(s) to make loans to employer(s) for an eligible activity resulting in the creation or retention of permanent jobs or to developer(s) to construct infrastructure improvements necessary to accommodate the creation, expansion or retention of a business that will create or retain jobs.
FUNDING: Federal EDBG Grant Funds
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Fiscal Impact/Change to Net County Cost: There is no additional cost beyond staff time associated with the application process. County match requirements for each application will be determined based on the program or project selected. Leverage for the grant(s) will be primarily owner equity and private funds obtained by the identified business(es).
Background:
Reason for Recommendation:
The 2009-10 Economic Development Block Grant (EDBG) Over-The-Counter (OTC) Notice of Funding Availability (NOFA) provides grants of up to $2,500,000 for a one-year grant or up to $5,000,000 for a two-year grant. The grant funds would be used to provide loans to one or more businesses in the unincorporated area of El Dorado County. Eligible loan activities include construction, equipment purchase, working capital, land acquisition, on-site improvements, start up costs and loan guaranties. The County would also have the potential to use grant funds to install publicly owned infrastructure and off-site improvements in support of a business. The final grant amount would be determined based upon the loan amount necessary to assist each identified business with meeting their start up or expansion goals. The EDBG Program requires that a business create one full-time equivalent position for every $35,000 in EDBG OTC funds borrowed. The amount as well as re...
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