Miami-Dade Legislative Item
File Number: 200989
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File Number: 200989 File Type: Resolution Status: Adopted
Version: 0 Reference: R-557-20 Control: County Commission
File Name: CORONAVIRUS CREATE LOAN FUND FOR SMALL BUSINESS CDFIS Introduced: 5/20/2020
Requester: NONE Cost: Final Action: 6/2/2020
Agenda Date: 6/2/2020 Agenda Item Number: 11A2
Notes: Title: RESOLUTION APPROVING TERM SHEET FOR A GRANT AGREEMENT WITH THE DADE COUNTY FEDERAL CREDIT UNION (“DCFCU”) TO PROVIDE AN AMOUNT NOT TO EXCEED $25,000,000.00 IN FUNDS FROM THE 2020 CORONAVIRUS AID, RELIEF, AND ECONOMIC SECURITY ACT (“CARES ACT”) TO DEVELOP AND IMPLEMENT, IN COLLABORATION WITH LOCAL COMMUNITY DEVELOPMENT FINANCIAL INSTITUTIONS, A REVOLVING LOAN PROGRAM TO ASSIST LOCAL MICRO-BUSINESSES AFFECTED BY THE CORONAVIRUS DISEASE 2019 (COVID-19) PANDEMIC; AND DIRECTING COUNTY MAYOR OR COUNTY MAYOR’S DESIGNEE TO NEGOTIATE AND EXECUTE THE GRANT AGREEMENT AND TO PROVIDE REPORTS
Indexes: CORONAVIRUS
  LOAN
  SMALL BUSINESS
Sponsors: Eileen Higgins, Prime Sponsor
  Daniella Levine Cava, Co-Sponsor
  Jose "Pepe" Diaz, Co-Sponsor
  Barbara J. Jordan, Co-Sponsor
  Jean Monestime, Co-Sponsor
  Dennis C. Moss, Co-Sponsor
  Rebeca Sosa, 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 6/2/2020 11A2 Adopted P

County Attorney 5/20/2020 Assigned Michael J. Mastrucci 5/26/2020

Legislative Text


TITLE
RESOLUTION APPROVING TERM SHEET FOR A GRANT AGREEMENT WITH THE DADE COUNTY FEDERAL CREDIT UNION (“DCFCU”) TO PROVIDE AN AMOUNT NOT TO EXCEED $25,000,000.00 IN FUNDS FROM THE 2020 CORONAVIRUS AID, RELIEF, AND ECONOMIC SECURITY ACT (“CARES ACT”) TO DEVELOP AND IMPLEMENT, IN COLLABORATION WITH LOCAL COMMUNITY DEVELOPMENT FINANCIAL INSTITUTIONS, A REVOLVING LOAN PROGRAM TO ASSIST LOCAL MICRO-BUSINESSES AFFECTED BY THE CORONAVIRUS DISEASE 2019 (COVID-19) PANDEMIC; AND DIRECTING COUNTY MAYOR OR COUNTY MAYOR’S DESIGNEE TO NEGOTIATE AND EXECUTE THE GRANT AGREEMENT AND TO PROVIDE REPORTS

BODY
WHEREAS, coronavirus disease 2019 (COVID-19) is an infectious disease caused by severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2), a novel coronavirus that was first identified in December 2019; and
WHEREAS, as of May 26, 2020, the total number of confirmed cases of COVID-19 worldwide is over 5.5 million, with more than 1.7 million of those in the United States; and
WHEREAS, on March 9, 2020, Governor Ron DeSantis issued Executive Order No. 20-52 declaring a state of emergency for the entire State of Florida as a result of COVID-19; and
WHEREAS, on March 11, 2020, Mayor Carlos A. Gimenez declared a state of emergency for Miami-Dade County as a result of COVID-19; and
WHEREAS, the disease has since spread globally, and on March 11, 2020, the World Health Organization officially declared COVID-19 a pandemic; and
WHEREAS, to help curb the spread of COVID-19, many state and local governments throughout the country ordered non-essential businesses to close and strongly urged residents to be safer at home; and
WHEREAS, consequently, many small businesses, and in particular micro-businesses, are now facing a dire threat to their survival, and an increasingly large number of employees have been laid off or furloughed; and
WHEREAS, indeed, more than 36 million Americans have filed for unemployment since March, 2020; and
WHEREAS, to help blunt the impact of the economic downturn set in motion by the COVID-19 pandemic, the United States Congress passed, and on March 27, 2020 President Donald Trump signed into law, H.R. 748, the “Coronavirus Aid, Relief, and Economic Security Act” (the “CARES Act”); and
WHEREAS, the CARES Act is a $2 trillion stimulus package which provided, among other things:
* one-time checks of $1,200 to Americans earning a certain income;
* $349 billion in loans to small businesses (the “Paycheck Protection Program” or “PPP”);
* $17 billion of assistance to companies deemed crucial to national security;
* grants of $25 billion for passenger air carriers, $4 billion for air-cargo carriers, and $3 billion for certain contractors; and
* a $150 billion Coronavirus Relief Fund for local governments; and
WHEREAS, the CARES Act requires that the payments to local governments from the Coronavirus Relief Fund only be used to cover expenses that:
* are necessary expenditures incurred due to the public health emergency with respect to COVID–19;
* were not included in the budget most recently approved as of March 27, 2020 for the state or local government; and
* were incurred during the period that begins on March 1, 2020, and ends on December 30, 2020; and
WHEREAS, on April 16, 2020, the Small Business Administration (SBA) reported that it had exhausted all funding provided by the CARES Act for the PPP; and
WHEREAS, accordingly, the United States Congress passed, and on April 24, 2020 President Donald Trump signed into law, H.R. 266, the “Paycheck Protection Program and Health Care Enhancement Act of 2020” which authorized an additional $310 billion in funds for the PPP; and
WHEREAS, community development financial institutions (CDFIs) are specialized financial institutions that work in market niches that are often underserved by traditional financial institutions, typically very small, low income, minority-owned micro-businesses; and
WHEREAS, CDFIs supply tools needed by underserved communities to become self-sufficient through access to credit, capital, training, and technical assistance, and provide commercial loans and investments to small businesses in economically distressed markets; and
WHEREAS, these services, coupled with more flexible lending guidelines, can often make the difference between success and failure for many micro-businesses; and
WHEREAS, the public health emergency caused by COVID-19 has had an immediate and serious economic impact in Miami-Dade County, particularly on the many very small, low-income, minority-owned micro-businesses that did not receive assistance from the PPP or similar federal and state programs; and
WHEREAS, according to a 2018 report from Florida International University’s Metropolitan Center, there are over 66,000 micro-businesses in Miami-Dade County, defined as those with less than 10 employees, or about 81 percent of all private establishments; and
WHEREAS, micro-businesses are a significant driving force of the local economy in Miami-Dade County; and
WHEREAS, this Board is concerned about the short-term and long-term economic impacts of the COVID-19 pandemic to these micro-businesses in Miami-Dade County; and
WHEREAS, access to capital is a persistent challenge for micro-businesses in Miami-Dade County; and
WHEREAS, the Dade County Federal Credit Union (“DCFCU”) is a Florida not-for-profit financial institution based in Miami-Dade County that provides a wide array of banking services with a community focused approach; and
WHEREAS, to assist in the economic recovery of micro-businesses, this Board desires the County Mayor or County Mayor’s designee to negotiate and execute a grant agreement with DCFCU to provide $25 million in CARES Act funds to develop and implement, in collaboration with local CDFIs, a revolving loan program to assist local micro-businesses impacted by the COVID-19 pandemic,
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF MIAMI-DADE COUNTY, FLORIDA, that:
Section 1. The foregoing recitals are adopted as if fully set forth herein.
Section 2. This Board approves the term sheet attached hereto as Exhibit 1 (“Term Sheet”), for a grant agreement (“Agreement”) with the Dade County Federal Credit Union (“DCFCU”) in an amount not to exceed $25,000,000.00 in CARES Act funds for DCFCU to develop and implement, in collaboration with local CDFIs, a revolving loan program to assist local micro-businesses impacted by the COVID-19 pandemic.
Section 3. This Board directs the County Mayor or County Mayor’s Designee to negotiate and execute the Agreement with DCFCU. The Agreement shall include terms that are consistent with those set forth in the Term Sheet and such other customary grant provisions in County grant agreements, including, but not limited to, provisions related to the Florida Public Records Act and the County’s right to audit, review and monitor the expenditure of the grant funds.
Section 4. This Board directs the County Mayor or County Mayor’s Designee to provide a written report within 30 days, and every 30 days thereafter, detailing the status of the negotiations of the Agreement with DCFCU until an Agreement is executed. If an Agreement cannot be negotiated and executed with DCFCU, then the report shall explain the reasons for such. The completed report(s) shall be placed on an agenda of the Board pursuant to Ordinance No. 14-65.



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