City of Columbus - File #: 2187-2023

• File #: 2187-2023
• Version: 1
• Type: Ordinance
• Status: Passed
• File created: 7/12/2023
• In control: Small & Minority Business Committee
• On agenda: 7/31/2023
• Final action: 8/2/2023
• Title: To authorize the Director of the Department of Development to enter into a grant agreement with Freedom Equity, Inc. in an amount up to $1,500,000.00 for a micro loan program to support small minority businesses; to authorize the transfer of $1,500,000.00 between the Citywide Account and the Department of Development; to authorize the expenditure of up to $1,500,000.00 from the General Fund; and to authorize the advancement of funds on a pre-determined schedule during the term of the agreement. ($1,500,000.00)

Date	Ver.	Action By	Action	Result
8/2/2023	1	ACTING CITY CLERK	Attest
8/2/2023	1	MAYOR	Signed
7/31/2023	1	COUNCIL PRESIDENT	Signed
7/31/2023	1	Columbus City Council	Read for the First Time
7/31/2023	1	Columbus City Council	Waive the 2nd Reading	Pass
7/31/2023	1	Columbus City Council	Approved	Pass

Explanation

This legislation authorizes the Director of the Department of Development to enter into a grant agreement with Freedom Equity Inc. (FEI), in an amount up to $1,500,000.00 for the purpose of providing support to the new micro loan program. Funding will be advanced to the agency on a predetermined schedule.

Freedom Equity, Inc., is a community development financial institution that was incorporated in 2021 to be an alternative lender for black-owned small businesses in Central Ohio. The goal is to improve the accessibility and affordability of capital to support black and minority owned businesses in Central Ohio. The vision is to create an inclusive economy where black entrepreneurs thrive with the primary objective of growing Central Ohio’s economy by seeding the success of black businesses. Freedom Equity Inc. was born as an alternative lending institution focused on increasing economic prosperity for underserved businesses by providing affordable lending opportunities for the community.

Realizing the challenges experienced by borrowers of color, the Franklin County Business Growth and Equity Alliance, including Franklin County, the Columbus Urban League, and One Columbus, dedicated capital, staff, and in-kind resources to the development of the organization.

The micro loan program will serve 22-25 businesses with short term loans to use as working capital or to buy inventory supplies, furniture, fixtures, and equipment. In addition to providing loans, technical assistance and capacity building will be provided to support various lending program.


Fiscal Impact: The funding for this agreement, $1,500,000.00, will be transferred from the General Fund Citywide Account to the Department of Development General Fund Budget.

Contract Compliance: The contract compliance number is 045745 and expires on 6/20/25.

Title

To authorize the Director of the Department of Development to enter into a grant agreement with Freedom...