Explanation
BACKGROUND: This legislation authorizes the Director of the Department of Development to enter into contract with the Increase Community Development Corporation (ICDC) for the purpose of administering a microenterprise program. This program will include educational training and a revolving loan fund program for entrepreneurs. The training will include writing a business plan, understanding profit & loss and the financial implications of cash flow and breakeven, and developing operating and marketing plans to succeed. ICDC will also provide small microloans for start-up and/or working capital to those who qualify.
ICDC is a faith-based 501c3 not-for-profit organization founded in 1999 with a mission to assist low, moderate and middle income individuals to start, manage, grow and succeed in a microenterprise that will increase household income, create jobs, and strengthen communities. ICDC will provide six 6 week training cycles per year, technical assistance as needed, seminars and workshops monthly on advanced business concepts such as Quickbooks, social media, marketing and financial management. Since its inception, ICDC has trained over 2,500 individuals and provided financing to over 500 businesses.
Emergency action is requested to allow ICDC to administer the microenterprise training program and the microenterprise revolving loan program in the City of Columbus in a timely manner.
FISCAL IMPACT: This legislation authorizes the expenditure of $100,000 from the 2014 CDBG Fund budget.
Title
To authorize the Director of the Department of Development to enter into contract with Increase Community Development Corporation for the purpose of administering a microenterprise training program and a microenterprise revolving loan program; to authorize the expenditure of $100,000.00 from the Community Development Block Grant Fund; and to declare an emergency. ($100,000.00)
Body
WHEREAS, small businesses are essential to the growth of the City of Columbus; and
WHEREAS, entrepreneurial education is essential for individuals to start or expand a small business in the City of Columbus; and
WHEREAS, seed capital is essential to the entrepreneur; and
WHEREAS, a microenterprise revolving loan fund will help the entrepreneur start a business after successfully completing the microenterprise training program; and
WHEREAS, Increase Community Development Corporation ("ICDC") has over (14) years of experience in providing training and education to entrepreneurs; and
WHEREAS, $100,000 will be allocated to ICDC from the 2014 CDBG Fund; and
WHEREAS, emergency action is requested to allow ICDC to administer the microenterprise training program and the microenterprise revolving loan program in the City of Columbus in a timely manner; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Development in that it is immediately necessary to enter into contract with the Increase Community Development Corporation in order to allow programs to be administered in a timely manner, for the preservation of the public health, peace, property, safety and welfare; NOW THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the Director of the Department of Development is hereby authorized to enter into contract with the Increase Community Development Corporation for the administration of the microenterprise entrepreneurial training program and the microenterprise revolving loan program.
SECTION 2. That for the purpose stated in section 1, the expenditure of $100,000 or so much thereof as may be necessary, be and is hereby authorized to be expended from the Community Development Block Grant Fund, Fund 248, Department of Development, Economic Development Division, Division 44-02, Object Level One 03, Object Level Three 3337, OCA Code 410420.
SECTION 3. That this contract is awarded in accordance with Chapter 329.15 of the Columbus City Code.
SECTION 4. That the funds necessary to carry out the purpose of this ordinance are hereby deemed appropriated and the City Auditor shall establish such accounting codes as necessary.
SECTION 5. That for the reasons stated in the preamble hereto, which is hereby made a part hereof, this ordinance is hereby declared to be an emergency measure and shall take effect and be in force from and after passage and approval by the Mayor, or ten days after passage if the Mayor neither approves nor vetoes the same.