COUNCIL AUTHORIZATION TO REQUEST A GRANT FROM THE ECONOMIC DEVELOPMENT ADMINISTRATION (eda) FOR: OPTION a - increase of $250,000 in funding for the City of Peoria Revolving loan fund; and/or option B: $50,000 match for a regional revolving loan fund.
Background: The City of Peoria has the opportunity to request additional funds for its Revolving Loan Fund (RLF) through the U.S. ECONOMIC DEVELOPMENT
ADMINISTRATION (EDA) grant process. Two requests, which are described below, are being brought before the Council for consideration.
OPTION A: The City would request a grant of $250,000 which would require a match of $250,000 according to the EDA guidelines. Staff would propose matching this request with funds that currently exist in the RLF. Utilizing RLF funds for the match would not restrict the use of the funds.
OPTION B: The Economic Development Council (EDC) has proposed creating a Regional RLF that would provide an additional layer of funding for businesses. Not only would a business be able to receive up to $150,000 from the City RLF and $150,000 from the County RLF, but would also be eligible for an amount from the Regional RLF. Under this program each community who desires to utilize the regional RLF would be required to contribute a match for the grant. The City would propose using $50,000 from our RLF for this match. The match for the Regional RLF grant request would no longer be in the City’s RLF, but would be transferred to the EDC Regional loan program.
Currently the balance of the City’s RLF is a little over $400,000, providing adequate funding for both matches. These matches would be required only in the event that the EDA approved a grant for either program. If no grant is approved, the City RLF will remain the same and the Regional RLF would not be created.
The City’s RLF is based upon job creation thereby creating jobs for the citizens of Peoria and surrounding communities. The RLF low interest loan has also proven to be a great incentive for new or existing businesses as they locate or expand within our City.
STAFF Recommendation: Apply for both Option A & B
Financial Impact: To date the City’s RLF has assisted 40 businesses in their efforts to move to or expand in our City. An increase in the RLF funds would allow the City to assist more businesses, create more jobs and bring increased revenue to the City. There is not additional financial charge to the City for the additional Federal funding.
NEIGHBORHOOD CONCERNS: N/A
Impact if Approved: If approved Staff will proceed with the request for EDA grant funds for these programs.
Impact if Denied: Continue to operate the RLF Program without the additional Federal funding.
EEO Certification Number: N/A
RELATIONSHIP TO THE COMPREHENSIVE PLAN: This proposed expansion assists in achieving both the vision and goals of the Comprehensive Plan as follows: Chapter 5 ECONOMICS--VISION: A HEALTHY, THRIVING ECONOMY; and GOAL: A.1. Create a favorable business climate. A1.1. Continue to identify financial incentives to attract and retain businesses.
Director of Economic Development