Public Hearing: YES ? NO ? Department: Community Development
SUBJECT:
Title
Commission District(s): ALL
Contract for Administering a Revolving Loan Fund for DeKalb County Small Businesses and Loan Portfolio Servicing with Access to Capital for Entrepreneurs, Inc. (ACE).
Body
Information Contact: Allen Mitchell, Director
Phone Number: (404) 371-2438
PURPOSE:
To consider approving a two-year Revolving Loan Fund and Loan Portfolio Servicing contract with Access to Capital for Entrepreneurs (ACE) in an amount not to exceed $798,748 using Community Development Block Grant (CDBG) Funds.
NEED/IMPACT:
ACE will administer the Revolving Loan Fund which will serve small businesses in DeKalb County by providing fixed asset and/or permanent working capital financing while creating and/or retaining jobs for low-to-moderate income persons. The DeKalb County Loan Program will offer loans between $15,000 and $35,000 with an interest rate no greater than 5% amortized over 7 to 10 years.
ACE, a non-profit, is a US Treasury-certified Community Development Financial Institution (CDFI) with full back office operations (including accounting, collections, loan processing and fund development) supporting a $12 million small business loan portfolio. With fifteen years' experience, ACE has historically provided loans from $5,000-$250,000. Their mission is to provide community economic development to underserved people and communities. In 2019, 82% of ACE's loans were provided to members of underserved population, predominately low-to-moderate income, African American, Hispanic, and women business owners, ACE's default rate in 2019 was 2.25%.
ACE, a preeminent CDFI, has a wealth of experience servicing Loan Portfolios and will administer Loan Servicing for new and existing CDBG, HOME and NSP loans.
FISCAL IMPACT:
No cost to the County.
RECOMMENDATION:
Recommended Action
To approve a two-year Revolving Loan...
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