HomeMy WebLinkAboutResolutions - No. 2023-253RESOLUTION NO. 2023-253
A RESOLUTION OF THE LODI CITY COUNCIL AUTHORIZING THE
CITY MANAGER TO EXECUTE A PROFESSIONAL SERVICES AGREEMENT
WITH CALIFORNIA CAPITAL SMALL BUSINESS FINANCIAL DEVELOPMENT
CORPORATION, A CALIFORNIA PUBLIC BENEFIT NONPROFIT
CORPORATION, DBA CALIFORNIA CAPITAL FINANCIAL DEVELOPMENT
CORPORATION, TO IMPLEMENT UNDERWRITING AND ADMINISTRATION
OF THE HOMETOWN MICROLOAN PROGRAM; AND FURTHER
AUTHORIZING THE EXPENDITURE
WHEREAS, the Lodi City Council has adopted economic development strategic initiative
No. 2B to develop greater economic development opportunities for Lodi entrepreneurs and
businesses; and
WHEREAS, the Lodi City Council expressed interest in the development of a Hometown
Microloan Program to help create conditions of economic growth for persons and small
businesses with ten or fewer employees and who have experienced barriers to traditional
lending; and
WHEREAS, microlending is distinct from traditional lending in that it involves smaller
loan amounts, shorter terms, less stringent underwriting requirements, and greater loan
monitoring; and
WHEREAS, microloans are usually funded through a network of nonprofit, community-
based organizations and are meant to provide funding to women, low-income, veteran, and
minority entrepreneurs and small business owners who are unable to readily access capital in
other ways; and
WHEREAS, while nonprofit microlenders are mission -based, microlender interest rates
and fees must cover the cost of capital and support operating costs; and
WHEREAS, the Lodi City Council recognizes that providing loan capital, buying down
interest rates, and paying loan fees to a nonprofit microlender will create affordable,
low -interest -rate loans and reduced fees to benefitting Lodi -based businesses; and
WHEREAS, over eighty percent of all Lodi businesses have nine or fewer employees,
and they would be able to utilize a microloan program.
NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby
authorize the City Manager to execute a Professional Services Agreement with California
Capital Small Business Financial Development Corporation, a California public benefit nonprofit
corporation, dba California Capital Financial Development Corporation, to implement
underwriting and administration of the Hometown Microloan Program; and
BE IT FURTHER RESOLVED that the Lodi City Council does hereby authorize the
expenditure in an amount not to exceed $450,000 from Account Number 36510102.75028.; and
BE IT FURTHER RESOLVED, pursuant to Section 6.3q of the City Council Protocol
Manual (adopted 11/6/19, Resolution No. 2019-223), the City Attorney is hereby authorized to
make minor revisions to the above -referenced document(s) that do not alter the compensation
or term, and to make clerical corrections as necessary.
Dated: November 15, 2023
I hereby certify that Resolution No. 2023-253 was passed and adopted by the City
Council of the City of Lodi in a regular meeting held November 15, 2023 by the following votes:
AYES: COUNCIL MEMBERS — Bregman, Craig, Nakanishi, and Mayor Hothi
NOES: COUNCIL MEMBERS — None
ABSENT: COUNCIL MEMBERS — Yepez
ABSTAIN: COUNCIL MEMBERS — None
OLIVIA NASHED
City Clerk
2023-253