Title
Charlotte Community Capital Fund
Action
Action:
A. Authorize the City Manager to execute a contract with Self-Help Credit Union to extend the City's participation in the Charlotte Community Capital Fund for an additional one-year and six months term to extend its expiration to June 30, 2020, and
B. Authorize the City Manager to approve additional programmatic changes including but not limited to future terms, fund administrators, and other administrative adjustments consistent with the purpose of the Fund.
Body
Committee Chair:
James Mitchell, Economic Development
Staff Resources(s)
Tracy Dodson, Economic Development
Eric B. Nelson, General Services
Explanation
* On February 24, 2003, City Council approved the creation of the Charlotte Community Capital Fund (Fund) to help small businesses in the Charlotte region gain access to capital that is otherwise unavailable through conventional lending.
* On September 3, 2003, the City Manager executed an Allocation of Services and Duties Agreement (Agreement) with Self-Help Credit Union (Self-Help), a local non-profit community development lender and Fund administrator.
* The Fund was capitalized with loans of $500,000 from the City, and $1,479,480 from private and non-profit investors, including The Knight Foundation, Time Warner Cable, Piedmont Natural Gas, and several banking institutions.
* Fund oversight is provided by the Charlotte Community Capital Fund Operating Committee (Operating Committee) of original Fund investors, including two appointments by the Mayor and City Council.
* Funds are not used as direct business loans; rather, funds are used as an 85 percent guarantee for business loans made by Self-Help.
* Loans are typically used for equipment and inventory purchases and to support working capital needs.
* The Fund serves small businesses in Mecklenburg, Cabarrus, Rowan, Union, Anson, Gaston, and Lincoln counties.
* On April 28, 2014, Council authorized the City Manager to extend the Agree...
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