Explanation
This legislation authorizes the Director of the Department of Development to enter into a not-for-profit service contract, in amount up to $1,000.000.00, with Economic & Community Development Institute (ECDI) for the purpose of launching the Columbus Small Business Response and Recovery (CSBR) Program 2.0 - Revolving Loan Fund and Grant Fund.
ECDI, through CSBR, will provide immediate access to capital to small businesses in Columbus, Ohio including within underserved communities and servicing under resourced small businesses. The program is an important step in rebuilding and reestablishing the local economy inclusive of and in direct support of small businesses ensuring that support is provided to the entrepreneur.
Since 2005, the department has contracted with ECDI to manage other loan programs. Since that time, ECDI has closed over 200 Economic Development loans to Columbus based businesses.
ECDI is a 501(c)(3) not for profit economic development organization located in Columbus, Ohio. Its mission is to invest in people to create measurable and enduring social and economic changes. Since its inception in 2004, ECDI’s programs and services have grown into a comprehensive suite of training and assistance needed to start a business. ECDI also provides foundational financial literacy training, innovative microenterprise development training and capitalization programs, and business incubation services. ECDI has benefited local communities throughout the State of Ohio, assisted over 6,550 individuals, disbursed over $25 million through 1,275 small business loans and retained over 4,600 jobs, with the comprehensive services, throughout the State of Ohio.
The services included in this non-for-profit service contract cannot be provided by existing city employees because these services are beyond the City’s current staffing capacity to provide.
Emergency action is requested to allow ECDI to begin to immediately provide access to capital to small businesses through the Columbus Small Business Response and Recovery (CSBR) Program 2.0-Revolving Loan Fund and Grant Fund.
FISCAL IMPACT: The funding of $1,000,000.00 is available in the Columbus JEDD Revenue fund (Fund 2239)
CONTRACT COMPLIANCE: The vendor’s contract compliance number is 004753 and expires on 4/21/23.
Title
To authorize the appropriation and expenditure of up to $1,000,000.00 in the Columbus JEDD Revenue fund; to authorize the Director of the Department Development to enter into a non-for-profit service contract with Economic & Community Development Institute for the purpose of launching the Columbus Small Business Response and Recovery (CSBR2) Program- 2.0-Revolving Loan Fund and Grant Fund to provide immediate access to capital to small businesses in Columbus, Ohio; to authorize the expenditure of up to $1,000,000.00 from the Columbus JEDD Revenue fund; and to declare an emergency. ($1,000,000.00)
Body
WHEREAS, small business growth and development is essential to the growth of the City of Columbus; and
WHEREAS, the Columbus Small Business Response and Recovery (CSBR) Program 2.0 Revolving Loan Fund and Grant Fund will provide immediate access to capital to small businesses in Columbus, Ohio; and
WHEREAS, the program is an important step in rebuilding and reestablishing the local economy inclusive of and in direct support of small businesses ensuring that support is provided to the entrepreneur; and
WHEREAS, the City of Columbus is launching the program with the assistance of the Economic & Community Development Institute (ECDI); and
WHEREAS, it is necessary to authorize the Director of the Department of Development to enter into a not-for-profit service contract with the Economic & Community Development Institute (ECDI), in an amount up to $1,000,000.00, for the purpose of proving immediate access to capital to small businesses in Columbus through the Columbus Small Business Response and Recovery (CSBR) Program 2.0 Revolving Loan Fund and Grant Fund; and
WHEREAS, an emergency exits in the usual daily operation of the Department of Development in that it is immediately necessary to authorize the Director of the Department of Development to enter into contract with the Economic & Community Development Institute (ECDI) for the purpose of providing immediate access to capital to small business in Columbus, Ohio, all for the preservation of the public health, peace, prosperity, safety and welfare: NOW THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That from the unappropriated monies and from all monies estimated to come into said fund from any and all sources and unappropriated for any other purpose during the fiscal year ended December 31, 2021, the sum of $1,000,000.00 is appropriated in Fund 2239 (Columbus JEDD Revenue), Dept-Div 4402 (Economic Development), in object class 03 (Services) per the account codes in the attachment to this ordinance.
SECTION 2. That the Director of the Department of Development is hereby authorized to enter into a not-for-profit service contract with the Economic & Community Development Institute (ECDI) for the purpose of providing immediate access to capital to small businesses in Columbus through the Columbus Small Business Response and Recovery (CSBR) Program 2.0 Revolving Loan Fund and Grant Fund in an amount up to $1,000,000.00.
SECTION 3. That the expenditure of $1,000,000.00 or so much thereof as may be needed, is hereby authorized in Fund 2239 (Columbus JEDD Revenue), Dept-Div 4402 (Economic Development), in object class 03 (Services) per the account codes in the attachment to this ordinance.
SECTION 4. That this contract is awarded in accordance with the relevant provisions of City Code Chapter 329 that relate to non-profit service contracts.
SECTION 5. 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 6. That the City Auditor is authorized to make any accounting changes to revise the funding source for all contract modifications associated with this ordinance.
SECTION 7. That for 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.