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RESOLUTION R-2021-39: A RESOLUTION OF THE COUNCIL OF THE CITY OF NORMAN, OKLAHOMA, ADOPTING THE SMALL BUSINESS RELIEF PACKAGE GUIDELINES SETTING FORTH CERTAIN ELIGIBILITY AND RANKING CRITERIA, AND FOUR FUNDING PROGRAMS FOR WHICH GENERAL OBLIGATION BONDS ISSUED FOR ECONOMIC AND COMMUNITY DEVELOPMENT FUNDS OR FEDERAL FUNDING PROVIDED FOR SIMILAR PURPOSES MAY BE ALLOCATED.
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BACKGROUND: As the Novel Coronavirus of 2019 (COVID-19) spread into Oklahoma in the spring of 2020, many businesses experienced economic hardship due to a dramatic change in consumer habits, along with Gubernatorial and Mayoral Emergency Closure Proclamations and necessary modifications to operations. In June 202, Council adopted Ordinance O-1920-64 which refers to the voters the question of authorizing the issuance of General Obligation bonds up to $5,000,000 for “economic and community development” purposes.
Specifically, Council wanted to use the funding to address financial harm to local businesses, with a focus on marginalized communities and job retention and creation programs. In recognition that additional federal funding opportunities were being discussed in Congress at the time of the ordinance adoption, Council included language that specified that any federal funding awarded to the City or individual businesses for similar economic and community development purposes will offset the authorization set forth in the ordinance.
The proposition before the voters on August 25, 2020, as set forth by Ordinance O-1920-64, says that such funds will be issued in accordance with guidelines to be adopted by the City Council. The Economic Development Advisory Board (“EDAB”), a City committee, has developed guidelines as specified by Ordinance O-1920-64. These guidelines have been formally discussed by Council on two previous occasions.
DISCUSSION: As contemplated by Ordinance O-1920-64, guidelines have been developed for the expenditure of available funding for local economic and community development programs. Under the program developed by EDAB and reviewed by Council, funds administered under this program will be split among four funding programs: a low-interest Revolving Loan for Existing Organizations with 35 or less employees; a Small Business/Non-Profit Recovery Loan with 10 or less employees; a grant for organizations with less than 5 employees; and technical assistance or training programs.
Priority will be given to: minority-owned entities; organizations that were impacted by past or future restrictions on capacity or closed during the City’s “Healthier at Home” plan; organizations located in lower-income Census tracts; organizations that were not eligible or were denied funding from other program, businesses or start-ups with needs directly resulting from COVID-19; and entities that demonstrate the greatest negative financial impact resulting from COVID-19.
Ineligible entities will include: church or religious organizations; public or private schools; government entities or elected officials; financial institutions primarily engaged in lending; organizations engaged in political lobbying activities; political consultants; or organizations with outstanding business related liens, judgments, tax liens or with pending bankruptcy proceedings prior to March 13, 2020.
Resolution R-2021-39 adopts the Small Business Relief Package Program Guidelines.
RECOMMENDATION: The adoption of R-2021-39 is recommended.