Legislative Matter

Miami-Dade Legislative Item
File Number: 131219

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Clerk's Official Copy

File Number: 131219

File Type: Resolution

Status: Adopted

Version: 0

Reference: R-482-13

Control: Board of County Commissioners

File Name: EST LINE OF CREDIT BONDING ASSISTANCE BUSINESS ENTERPRISE

Introduced: 6/10/2013

Requester: NONE

Cost:

Final Action: 6/18/2013

Agenda Date: 6/18/2013

Agenda Item Number: 11A9

Notes:

Title:

RESOLUTION DIRECTING THE MAYOR OR MAYOR’S DESIGNEE TO PREPARE AND ISSUE A WRITTEN REPORT TO THIS BOARD WITHIN SIXTY DAYS OUTLINING A PLAN TO REINSTITUTE THE LINE OF CREDIT FOR THE LOAN ASSISTANCE PROGRAM AND TO ESTABLISH A LINE OF CREDIT FOR THE BONDING ASSISTANCE PROGRAM AS PART OF THE COMMUNITY SMALL BUSINESS ENTERPRISE PROGRAM AND REPORT ANNUALLY TO THE BOARD IN ORDER TO EVALUATE THE SUCCESS OF THESE PROGRAMS

Indexes:

COMMUNITY SMALL BUSINESS ENTERPRISE BOARD

Sponsors:	Audrey M. Edmonson, Prime Sponsor
	Lynda Bell, Co-Sponsor
	Barbara J. Jordan, Co-Sponsor

Sunset Provision: No

Effective Date:

Expiration Date:

Registered Lobbyist:

None Listed

Legislative History
Acting Body	Date	Agenda Item	Action	Sent To	Due Date	Returned	Pass/Fail

Board of County Commissioners	6/18/2013	11A9	Adopted				P
REPORT:	The foregoing proposed resolution was read into the record by County Attorney Robert Cuevas It was moved by Commissioner Edmonson that the Board adopt this resolution as presented. The motion was seconded by Commissioner Bell, followed by discussion. Commissioner Edmonson noted she proposed this item because she understood that the County had an open line of credit for the existing Loan Assistance Program that just needed to be activated. She asked if this was correct. Ms. Jennifer Moon, Budget Director, Office of Management and Budget, noted in the past, and based on the deposits in the County’s banks, there was a program to offer loans to small businesses, but this program was suspended several years ago. She said that the Administration needed to find a way to reinstate it and address the issues associated with it. She explained that the item asked the Administration to propose a line of credit related to those loans, and a bonding plan, as well. Commissioner Edmonson noted all she was asking was for the Administration to report back on what could be done in order to reinstate the line of credit and establish a bonding program for small businesses. Commissioner Jordan asked to be listed as a co-sponsor of this item. In response to Commissioner Jordan’s question as to why the program was suspended, Ms. Moon noted she did not know exactly, but there were some issues with the use of the program. Responding to Commissioner Jordan’s question as to whether there was money in the program to guarantee the line of credit, Ms. Moon said there was not, noting the guarantee was the dollars on deposit with the banks. Commissioner Jordan said she was glad that Commissioner Edmonson requested that a funding source be identified for the bonding program, because the County had issues with it in the past. She recalled that because the County was the guarantor in 2005, when the County started the program, there was a $300,000 loan made that was defaulted on and the County had to repay that loan to Continental Bank. She said she wanted to ensure that the plan included a mechanism to protect the County, because at the time, the intent was to make the banking community a part of the bonding process. She said she wanted to express this concern because when the loan was defaulted on, instead of recapturing the funds from the entity that received it, they had to come from the County Departments’ General Fund. Commissioner Jordan stressed that she wanted to ensure that the County, as the guarantor of the lending program, would be protected in the future. She also stated that it was advisable that the County activate the line of credit, because she understood that the Administration was continuing to pay a fee to keep the line of credit open. She said that she wanted the Administration to propose a program with built-in mechanisms to protect the County. She suggested that the check be made out to the vendor and the lender for payback purposes. Chairwoman Sosa noted she shared Commissioner Jordan’s concerns, and recalled the problems that the South Florida Regional Planning Council had in the past with line of credits issued to small businesses. She asked Deputy Mayor Alina Hudak to ensure that the written report requested in this item indicated which small businesses received loans from this program in the past, when the loans were received, and whether these businesses had any difficulties repaying the loan or had defaulted on the loan. She also asked that this program include measures to protect the County in the event a business defaulted on the loan. Commissioner Edmonson said she agreed that mechanisms for protecting the County should be built into the plan. She noted she understood that only one small business out of many had defaulted on a loan, which was common with banks. She stressed that this was an excellent program that was already in existence; and in any case, the County was spending $10,000 per year to keep the line of credit open. Hearing no further discussion, the Board members proceeded to vote on this resolution as presented.

County Attorney	6/10/2013		Assigned	Alex S. Bokor

Legislative Text

TITLE
RESOLUTION DIRECTING THE MAYOR OR MAYOR�S DESIGNEE TO PREPARE AND ISSUE A WRITTEN REPORT TO THIS BOARD WITHIN SIXTY DAYS OUTLINING A PLAN TO REINSTITUTE THE LINE OF CREDIT FOR THE LOAN ASSISTANCE PROGRAM AND TO ESTABLISH A LINE OF CREDIT FOR THE BONDING ASSISTANCE PROGRAM AS PART OF THE COMMUNITY SMALL BUSINESS ENTERPRISE PROGRAM AND REPORT ANNUALY TO THE BOARD IN ORDER TO EVALUATE THE SUCCESS OF THESE PROGRAMS

BODY
WHEREAS, this Board has enacted a Community Small Business Enterprise Program which includes both financial assistance for working capital for small businesses in the form of a Loan Assistance Program (�Loan Assistance Program�) and bonding assistance to small businesses in the form of a bonding assistance program (�Bonding Assistance Program�); and
WHEREAS, the purpose of the Loan Assistance Program is to encourage and promote small business participation in County construction projects by assisting small businesses in obtaining necessary capital to participate in such projects; and
WHEREAS, the purpose of the Bonding Assistance Program is to encourage and promote small business participation in County construction projects by assisting small businesses in fulfilling County bonding requirements; and
WHEREAS, a line of credit based on the County�s deposits was previously identified for the Loan Assistance Program, but has not been utilized to date; and
WHEREAS, a line of credit based on the County�s deposits should be identified and established for the Bonding Assistance Program; and

WHEREAS, opening lines of credit in support of both the Loan Assistance Program and the Bonding Assistance Program will provide opportunity for, and is of great significance to, the small business community,
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF MIAMI-DADE COUNTY, FLORIDA, that the Mayor of Mayor�s designee is hereby directed to prepare and issue a written report to this Board within sixty days outlining a plan to reinstitute the line of credit for the Loan Assistance Program and to establish a line of credit for the Bonding Assistance Program as part of the Community Small Business Enterprise Program and report annually to the Board in order to evaluate the success of these programs.