Speaker 0: Okay. Great question, Kerry. Then moving on to 39, please.
Speaker 4: Report from economic development. Recommendation to execute all necessary documents to amend the EDA Revolving Loan Fund to create the Long Beach Emergency Microenterprise Loan Program to assist local microbusinesses impacted by COVID 19 citywide.
Speaker 0: Okay. This is a report from staff. Yes. Jon Kate Blair, director of economic development, will give the staff report. Yeah. Good evening, Mayor and members of the city council. This is a really good, positive change. In response to the current emergency, we've operated a revolving loan fund program since the Los Angeles riots of 91. We established that fund in partnership with the Economic Development Administration, a federal agency with an initial $1 million grant. Over the last 30 years, we've made $10 million worth of loans off of that initial $1 million grant for this particular emergency. We've asked the Economic Development Administration to change this program and in the terms to allow us to make a much smaller $10,000 and less loans. We've also changed some of the terms for repayment so that small businesses will have up to seven years to repay these $10,000 loans. This allows the city council to make a lot more loans to local small businesses with five employees or less. Typically, these are the businesses that are unable to secure SBA loans. The bigger loan programs that you've been hearing about and fills an important gap for both for profit and nonprofit micro businesses in the city of Long Beach . So we're asking for your approval to modify what's called the Economic Development Administration Plan. This will occur during the period of the emergency. After this funding is loaned out, of course, we'll seek repayment. We'll provide technical assistance to the borrowers and hope that we don't experience a lot of loan losses and see the revolving loan fund be capitalized at the end of the term. So with that, I'll end my report and happy to answer any questions. Thank you, Governor Richardson.
Speaker 2: Thank you, Mr. Mayor. And I want to start by thanking John. We have had a lot of conversation about this, but I think it's important that as we first of all, as we look at the different sectors of response and there's a lot of support, federal response for, you know, credit worthy businesses and this is already happening that these are, in fact, the things that really make a difference. This action is also in alignment with the city council economic relief package this week. One of the items that we asked to come back from the road to see just how we would quickly we understand the economic impact that that's taking place on our businesses. And I think that the way that we're approaching this as Microsoft flight mode makes a lot of sense, either by five employees or fewer. And even we think we've really been be concerned about the hard time that the folks to deal with are readily available messengers of many of our vulnerable communities, as you know, from from the beta, you know, and what we've been doing. Those are the people we need working with. And they're all having a very difficult time. By late, House staff will work to find ways to make this program more accessible, more flexible and more responsive. I like that there's no theme. I like the image, the format. I love the cap on interest rate. That's one half percent. All of these modifications make sure that we remove barriers to make sure that makes sure that this actually ends up in the hands of the businesses and not the. And I'm happy to make this motion.
Speaker 0: Thank you. Customers. And they have.
Speaker 1: Thank you. And there I would like to second this motion. I, I absolutely love the idea of converting an existing and successful program to meet the demands of this crisis that we're in right now. So I'm in full support of this program. Thank you for stopping to start placing your office, for being innovative and quick thinking and and remembering those businesses that are not contracted by our SBA loans. So thank you. And I'm happy to step into of them.
Speaker 0: Thank you. Councilman Austin.
Speaker 2: Thank you. I'm happy to support with as you know, there are many small businesses in my district and throughout the city that are really, really hurting at this point. And this type of initiatives actually brings, I think, help and hope for those businesses that are that are really taking it hard with this effort, home shutdown that we're experiencing. And so I'm happy to say that this.
Speaker 0: Thank you. And Councilmember Pearce.
Speaker 1: Theme, happy to support, happy to give props to the Economic Development Department. And John, I know that we had a good conversation about this on Friday. And I just want to highlight, you know, whenever people are applying for these grants at the state level or the federal level, it has been so frustrating for so many of our business owners. But the feedback I've gotten from the Second District businesses that have applied and been approved for grants or loans through the study is about how helpful our staff has been, how quickly they got a response. And so the more that the city is able to be nimble and provide these opportunities for our constituents, I think the better. You know, I think there's a definite role for for the federal government to play. But really in Long Beach, what I've heard is just that we are really setting the model for how to be nimble and how to make sure that we're doing things in a way that makes sense to the everyday user. And so, again, just really proud of the work that you guys are doing during this difficult time. So I'm happy to vote yes.
Speaker 0: Thank you. And that concludes public comment. I'm sorry, I can't comment on this item. So, Madam Clerk, roll call vote, please.
Speaker 4: District one.
Speaker 1: Hi.
Speaker 4: District two.
Speaker 1: I.
Speaker 4: District three. High District four.
Speaker 2: By.
Speaker 4: District five.
Speaker 1: I.
Speaker 4: District six. By District seven. So District eight. High District nine, high ocean carries.
Recommendation to authorize City Manager, or designee, to execute all necessary documents to amend the U.S. Economic Development Administration (EDA) Revolving Loan Fund, to create the Long Beach Emergency Microenterprise Loan Program to assist local micro businesses impacted by the COVID-19 pandemic during the emergency declaration period.  (Citywide)