Title
Charlotte Community Capital Fund Support
Action
Action:
A. Approve the use of up to $2,000,000 from the Coronavirus State and Local Fiscal Recovery Fund for the establishment of Charlotte Community Capital Fund for the development and implementation of a sustainable capital access program in support of empowering small businesses and entrepreneurs with financial opportunities that foster growth and prosperity in partnership with the Mayor's Racial Equity Initiative, Bank of America, Ally, Truist, and Atrium,
B. Authorize the City Manager, or his designee, to negotiate and execute a contract for up to $2,000,000 with Scale Link for the operation, administration, and management of the fund currently named the Charlotte Community Capital Fund, and
C. Authorize the City Manager, or his designee, to execute, amend, and renew contracts and other documents as needed to complete this transaction.
Body
Staff Resource(s):
Julia Martin, City Manager's Office
Steven Coker, Charlotte Business Inclusion Office
Explanation
* This request is to approve the use of American Rescue Plan Act (ARPA) funds to partner in the establishment of a Capital Access Fund.
* The Charlotte Community Capital Fund (C3) is being established to address challenges faced by small businesses, with a focus on MWSBEs, specifically:
- Access to Capital: Small businesses face significant obstacles in accessing capital, particularly from traditional financial institutions. Key reasons include lower credit scores, net worth, and lack of assets, leading to reduced chances of securing business loans.
- Struggle to Thrive: Due to the difficulty in obtaining necessary funding, many businesses often find it challenging to grow and establish themselves in their respective industries. The inability to access capital can hinder their growth, job creation, and economic impact in the City of Charlotte.
* The role of C3 includes:
- Bridging the Gap: The Charlotte Community Capital Fund (C3) plays a cruci...
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