Proposed Ordinance - 9/15/2022SALT LAKE CITY ORDINANCE
No. _____ of 2022
(Ordinance approving the deferral of Emergency Loan Program loans)
WHEREAS, on March 10, 2020, the Mayor issued a “Proclamation Declaring a Local
Emergency” (“Proclamation”) in response to the global outbreak of COVID-19 (“Pandemic”).
WHEREAS, on March 24, 2020, Salt Lake City Corporation (the “City”) created a
revolving loan fund referred to as the Emergency Loan Program (the “ELP”) via Resolution No.
4 of 2020 to provide financial relief for small businesses located in Salt Lake City in response to
the Pandemic’s adverse economic impacts; and
WHEREAS, the City, via Resolution No. 4 of 2020, adopted certain loan criteria and
processes to govern the ELP (the “Program Terms”); and
WHEREAS, the ELP, administered by the City’s Department of Economic Development
(the “DED”), provided one million dollars in funding to fifty-two Salt Lake City businesses and
nonprofits in amounts ranging from $5,000 up to $20,000; and
WHEREAS, pursuant to the Program Terms, the repayment of the ELP loans was set to
begin 90 days after the Proclamation ended on May 7, 2021; and
WHEREAS, the repayment of the loans was additionally deferred from August 7, 2021,
to December 31, 2021 in response to ongoing adverse economic impacts arising from various
coronavirus variant outbreaks in the Pandemic during the fall; and
WHEREAS, economic recovery for small businesses continues to be unsteady, with Salt
Lake City businesses in retail, food/beverage services, hospitality, arts, entertainment, and
recreation industries continuing to face financial stress due to the Pandemic’s lingering impacts,
such as variant spikes, global supply chain issues, increasing inflation, and labor shortages; and
WHEREAS, these continuing adverse impacts may further strain the financial condition
of the City’s small business ELP loan recipients; and
WHEREAS, the City deeply values its local, small business community, and wishes to
relieve the economic pressure on ELP loan recipients to permit them additional time for a full
and robust economic recovery; and
WHEREAS, a deferral of the ELP loans until December 31, 2024, in line with the ARPA
expenditure deadline, would provide ELP loan recipients the opportunity to more fully recover
from the adverse impacts brought by the Pandemic.
NOW, THEREFORE, be it ordained by the City Council of Salt Lake City, Utah, that:
SECTION 1. Deferral of ELP loans until December 31, 2024. The City Council hereby
authorizes the deferral of repayment of the ELP loans until December 31, 2024. The City
Council authorizes the Mayor to negotiate and execute amendments to the loan agreements and
any other relevant documents necessary to evidence this deferral, including incorporating such
other terms and agreements as recommended by the City Attorney’s office.
SECTION 2. Effective Date. This ordinance shall become effective on the date of its first
publication.
Passed by the City Council of Salt Lake City, Utah, this ______ day of
_____________________, 2022.
Dan Dugan, Council Chair
ATTEST AND COUNTERSIGN:
______________________________
CITY RECORDER
Transmitted to Mayor on _______________________.
Mayor's Action: _______Approved. _______Vetoed.
______________________________
MAYOR
______________________________
CITY RECORDER
(SEAL)
Bill No. ________ of 2022.
Published: ______________.
APPROVED AS TO FORM
Salt Lake City Attorney’s Office
Date:
Sara Montoya, City Attorney
September 14, 2022