004 of 2020 - Budget Amendment No. 5 for Fiscal Year 2019-20; EDLF Program Created; Economic Development Emergency R 20-1
B 20-4
RESOLUTION NO. 4 OF 2020
Creation of Economic Development Emergency Loan Program
WHEREAS, on March 10, 2020, the Mayor issued a"Proclamation Declaring a Local
Emergency" in response to the global outbreak of COVID-19, which outbreak has potential to
severely affect the City's small business economy;
WHEREAS, Salt Lake City Corporation (the "City") desires to support small businesses
located in Salt Lake City during this emergency by creating a revolving loan fund referred to as
the Emergency Loan Program (the "ELP"),to be administered by the City's Department of
Economic Development (the"DED"); and
WHEREAS, DED recommends creating the ELP using the loan criteria and process set
forth on Exhibit A, attached hereto and incorporated herein (the"Program Terms").
NOW THEREFORE, BE IT RESOLVED by the City Council of Salt Lake City, Utah,
the following:
1. The Council approves the creation of the Emergency Loan Program,to be
administered pursuant to the Program Terms.
2. The Loan Program may operate until October 2020, at which time it will be
reviewed by the Council to determine if it is meeting its objectives and whether it shall continue.
3. The Council hereby authorizes the Mayor or her designee to negotiate and execute
any documents required to effectuate the Loan Program and any individual loan to a qualifying
business on the terms outlined in the Program Terms, and incorporating such other terms and
agreements as recommended by the City Attorney's office.
Passed by the City Council of Salt Lake City, Utah this qday of March , 2020.
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�1,?:...........',:G. 4s. SALT LAKE CITY COUNCIL
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'....q.'"-"-r----- v Chris Wharton(Apr 10,2020)
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0C4/ R ti-� Chris Wharton, Chair/// _21414..../N
dD CO I N: Approved as to form:
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Salt Lake City Attorney's Office
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v.,..___________
1001_
„Fry , CITY RECORDER Ifatherine Lewis, City Attorney
Date: 3/20/20
EXHIBIT A
LOAN PROGRAM TERMS
Loan Amount: $20,000
Term: 5 years
Interest Rate: 0%
Repayment Terms: Equal monthly payments of principal. Repayment
will commence approximately 90 days following
the subsidence of the COVID-19 outbreak and
following notice from the City.
Any write-off or loan forgiveness must be approved
by the City Council.
Eligible Borrowers: 1. Must have physical location within Salt
Lake City limits
2. Must have 50 employees or less
3. 25%of this funding shall be allocated to
businesses West of I15.
Guaranty: Loan is guaranteed by any owner holding 20%or
more interest in the ownership of the borrower.
Required information: 1. Application (to be developed by DED)
2. Financials: profit and loss, and balance
sheets from previous year
3. Business tax returns from previous year
4. Most recent month-end or quarterly
financial statement
5. Previous year's personal tax returns
6. Copy of Salt Lake City Business License
7. Copy of driver's license of government
issued ID
8. Signed W9 form
9. Copy of lease or mortgage statment
Loan Approval Process: An emergency loan committee will be created
formed to expedite the review and approval
process. The committee will consist of five
members: Department of Economic Development
(2),Business Advisory Board (1), Downtown
Alliance(1), and City Council (1). Loan committee
will meet as needed, which may include meeting
virtually to expedite the approval process. Loan
committee also has ability to approve less than loan
amount requested if appropriate.
Reports: DED will deliver reports to City Council monthly
showing the number of applicants, loans closed,
and fund status
Program Guidelines: DED will develop more detailed program
guidelines to achieve City objectives.