Request for Committee Action
A briefing memo explaining the purpose, background, and impact of the requested action.
Small Business Lending Re-appropriation (RCA-2021-01246)
ORIGINATING DEPARTMENT
To Committee(s)
| # | Committee Name | Meeting Date |
|---|---|---|
| 1 | Business, Inspections, Housing & Zoning Committee | October 26, 2021 |
Action Item(s)
| # | File Type | Subcategory | Item Description |
|---|---|---|---|
| 1 | Resolution | Appropriation | Passage of Resolution re-appropriating funds for small business lending programs. |
Ward / Neighborhood / Address
| # | Ward | Neighborhood | Address |
|---|---|---|---|
| 1. | Not Applicable |
Background Analysis
Last year the City appropriated $2,000,000 in funds to assist in the restoration of properties reduced to rubble as a result of the civil unrest. That appropriation shifted existing appropriation in CPED’s departmental budget, $500,000 of which came from the City’s small business lending programs, e.g. 2% Loans.
Since that time, the City has worked with the identified property owners to remove debris and restore property to grade. The City did not need the full $2,000,000 to achieve these restorations and has $500,000 remaining that can shift back to fund the City’s small business lending program. The small business lending program has nearly exhausted its existing 2021 appropriation, in part because of the deployment of $1.5 million to support the George Floyd Square/38th & Chicago Forgivable Loan program. Currently there is a pipeline of eligible small business applicants that could receive a 2% Loan from the City this year if funds were available. Shifting the available $500,000 back to the small business lending program would allow these loans and the related business expansions to proceed.