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HomeMy WebLinkAbout20232792.tiffRESOLUTION RE: APPROVE AMENDMENT #4 TO LOAN FUND GRANT AGREEMENT AND AUTHORIZE CHAIR TO SIGN - COLORADO ENTERPRISE FUND, INC. WHEREAS, the Board of County Commissioners of Weld County, Colorado, pursuant to Colorado statute and the Weld County Home Rule Charter, is vested with the authority of administering the affairs of Weld County, Colorado, and WHEREAS, the Board has been presented with Amendment #4 to the Loan Fund Grant Agreement between the County of Weld, State of Colorado, by and through the Board of County Commissioners of Weld County, and Colorado Enterprise Fund, Inc., with further terms and conditions being as stated in said amendment, and WHEREAS, after review, the Board deems it advisable to approve said amendment, a copy of which is attached hereto and incorporated herein by reference. NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners of Weld County, Colorado, that Amendment #4 to the Loan Fund Grant Agreement between the County of Weld, State of Colorado, by and through the Board of County Commissioners of Weld County, and Colorado Enterprise Fund, Inc., be and hereby is, approved. BE IT FURTHER RESOLVED by the Board that the Chair be, and hereby is, authorized to sign said amendment. The above and foregoing Resolution was, on motion duly made and seconded, adopted by the following vote on the 25th day of September, A.D., 2023. BOARD OF COUNTY COMMISSIONERS WELD COUNTY, COLORADO ATTEST: Weld County Clerk to the Board BY:Qttni . tdm.(,U 1 UL Deputy Clerk to the Board APP' aVED ' T! FORM: Cou Attorney Date of signature: C41 z 'I Mi F eman, Chair erry L :� ck, Pr -Tem Scott K. James cc: FI(aR/cp) IgcT(cc), CANS) to /20/23 2023-2792 BC0057 Conyva0- 111047 I BOCC STAFF USE Date Set: Time: BOARD OF COUNTY COMMISSIONERS WORK SESSION REQUEST WORK SESSION TITLE: Proposed Amendment Four to CEF Loan Fund Agreement DEPARTMENT: Finance DATE: 9/18/23 PERSON REQUESTING: Cheryl Pattelli EXTENSION: 4481 Has your Commissioner Coordinator or BOCC Chair approved the work session? Yes, Commissioner Coordinator _X_Yes, BOCC Chair Recommended length of time needed for discussion: 15 minutes _X_30 minutes other (list): In addition to yourself and the board, please list who should attend: Ryan Rose, Bruce Barker (Weld Staff) Carrie Hanson, Lewis Hagler (CEF Staff) Brief description of the issue: Informational only _X_Action needed Colorado Enterprise Fund (CEF) staff reached out to Weld County staff requesting a fourth amendment to the Weld County Business Loan Fund Agreement. Attached is the following: • Weld County Business Loan Fund Agreement (2013) o Amendments One (2015), Two (2016), Three (2018), and Covid Relief (2020) to the Weld County Business Loan Fund Agreement Proposed draft of Amendment Four to the Weld County Business Loan Fund Agreement (Sept. 2023) ■ Email from CEF outlining the changes in Amendment Four o Presentation that CEF staff will be giving the BOCC at the Sept. 18, 2023, Work Session. The changes recommended in Amendment Four were reviewed by Bruce Barker earlier this month. Options for the board: 1) Approve the changes per Amendment Four of the Weld County Business Loan Fund Agreement 2) Approve some, not all, of the changes per Amendment Four of the Weld County Business Loan Fund Agreement 3) Do not approve the changes per Amendment Four of the Weld County Business Loan Fund Agreement Recommendation to the board: Staff recommends approving the changes per Amendment Four of the Weld County Business Loan Fund Agreement at an upcoming BOCC meeting. 2023-2792 9/25 BC 6051 AMENDMENT FOUR TO THE LOAN FUND GRANT AGREEMENT BETWEEN WELD COUNTY AND COLORADO ENTERPRISE FUND, INC. Colorado Enterprise Fund ("CEF") requests to update, change and clarify existing Grant Agreements that outline the administration and management of the existing revolving Small Business Loan Pool or Microloan Fund Programs ("Loan Pool Program" or "LPP") operating on behalf of the City or County partner. RECITALS Whereas CEF ("Grantee") entered into a grant agreement with Weld County, Colorado ("Grantor") on January 28, 2013 and subsequent agreements with the most recent on October 22, 2018 (collectively and together known as the "Grant Agreements") to establish, grow and operate the Loan Pool Program for the area. Whereas, the Grantee will continue to administer and operate the Loan Pool Program per the Grant Agreements, with the Purpose, General Objectives, Loan Pool Program structure, Promotion, Performance Period, Compliance Period, Events of Default, and Remedies and any other miscellaneous provisions, including previous investments, general loan programs and coaching services, to remain in full effect. NOW, THEREFORE, Grantor agrees to the following changes, updates and affirmations provided in items 1.-5. below to the Grant Agreements, which shall supersede Grant Agreements as of the signature date, to include, 1. Grantor agrees that all Loan Pool Program loan losses shall be fully allocated to Grantee and that Grantor is not required to invest additional loan capital to the Loan Pool Program; and, 2. Grantor agrees to eliminate the maximum loan amount of the Loan Pool Program. Grantee will continue to provide loans through the Loan Pool Program that are generally less than, but not limited to, $50,000; and, 3. Grantee shall contribute co -funding loan capital to the Loan Pool Program from sources other than funds provided by the Grantee, to be used as additional loan capital at a ratio of at least 1:1; and, 4. Grantor accepts Attachment A hereto, as Loan Pool Program eligibility and terms to serve as addendum to Grant Agreements; and, 5. Grantor agrees that Grantee shall provide: a. Audited annual financial statements to the Grantor within 120 days of the end of the Grantee's fiscal year; b. Internally prepared interim financial statements (balance sheet and income statement) quarterly to Grantor within 45 days of each quarter end; and c. Loan activity and impact reports to Grantor within 45 days of each quarter end. Quarterly Impact reports will generally include the Zoho Sign Document ID: 28005D2C-NCV_GC-9D6ZYHWJGA4WKGCOLGEPCI99NZABDN5A1 NOG i. most recent quarter lending activities for the Program Area including number and dollar value of loans originated and summaries of impacts thereof (such as jobs created, retained, borrower demographics, coaching hours), and ii. active portfolio summary by number of loans and dollar value and aging receivable, and iii. cumulative funds deployed of dollar and number of loans, jobs impacted, and summary of business sector, loan purpose and coaching hours and areas. Acknowledgement and acceptance of the above statements, COLORADO ENTERPRISE FUND: Sep 20 2023 11:05 PDT Name: Cecilia H. Prinster Title: President and CEO BOARD OF COUNTY COMMISSIONERS WELD COUNTY, COLORADO Date ATTEST: 4 '"- CI o the Board 4.00.64 e Freeman, Chair SEP 2 5 2323 BY:�_ r, dff21..�► Deputy COtot e Bo/ 4 m2 Daz .�- 0Z79.2— Zoho Sign Document ID: 28005D2C-NCV_GC-9D6ZYHWJGA4WKGCQLGEPCI99NZABDN5A1NOG ATTACHMENT A ELIGIBILITY GUIDELINES The purpose of the Loan Pool Program ("LPP") is to provide access to capital in the form of small business and micro loans to small businesses or community organizations with annual gross revenues generally under two ($2M) million dollars with generally less than 50 FTEs that cannot obtain financing through traditional sources, but are capable of sustaining a business operations and repaying debt, and are considered socially or economically disadvantaged for a variety of reasons. A. All loans made from the LPP will be to businesses with their primary locations within Weld County ("Program Area"). B. To be eligible for the LPP and receive a small business loan: a. At the time of application and throughout the term of the loan, a business must have its primary office/headquarters or operations in the Program Area. b. A business must file all standard Colorado Enterprise (CEF) application information and meet CEF's standard underwriting criteria for the type and size of loan. C. Permitted and non -permitted uses of loan funds will follow CEF's standard loan policy, which may include, but is not limited to: a. Inventory purchase b. Start-up expenses c. Equipment purchase d. Operations e. Tenant finish and property improvements f. Purchase of a business or franchise D. Term and Fees of Loans. The terms and fees of a business loan will follow terms offered on CEF products. E. Interest Rates. The interest rates charged will follow CEF standard interest rates and be determined based on market conditions, loan size and risk. F. Underwriting and Application Process. CEF will follow its standard underwriting and loan application process, and its standard Loan Policies, Guidelines and Procedures. Zoho Sign Document ID: 28005D2C-NCV_GC-9D6ZYHWJGA4WKGCQLGEPCI99NZABDN5A1NOG t.ct Entity Information Entity Name* Entity ID* COLORADO ENTERPRISE FUND @00029864 Q New Entity? Contract Name* Contract ID AMENDMENT FOUR TO THE LOAN FUND GRANT 7421 AGREEMENT BETWEEN WELD COUNTY AND COLORADO ENTERPRISE FUND, INC. Contract Status CTB REVIEW Contract Lead * CPATTELLI Contract Lead Email cpattelli@co.weld.co.us Contract Description* AMENDMENT FOUR TO THE LOAN FUND GRANT AGREEMENT BETWEEN WELD COUNTY AND COLORADO ENTERPRISE FUND, INC. Contract Description 2 Contract Type" Department AMENDMENT FINANCE Amount* $0.00 Renewable * NO Automatic Renewal Grant IGA Department Email CM- Finance@weldgov.com Department Head Email CM-Finance- DeptHead@weldgov.com County Attorney GENERAL COUNTY ATTORNEY EMAIL County Attorney Email CM- COUNTYATTORNEY@WEL NTYATTO R N EY@W EL DGOV.COM If this is a renewal enter previous Contract ID If this is part of a MSA enter MSA Contract ID Parent Contract ID Requires Board Approval YES Department Project # Requested BOCC Agenda Due Date Date* 09/23/2023 09/27/2023 Will a work session with BOCC be required?* HAD Does Contract require Purchasing Dept. to be included? Note: the Previous Contract Number and Master Services Agreement Number should be left blank if those contracts are not in OnBase Contract Dates Effective Date Termination Notice Period Contact Information Contact Info Review Date* 09/20/2023 Committed Delivery Date Renewal Date Expiration Date* 09/20/2024 Contact Name Contact Type Contact Email Contact Phone 1 Contact Phone 2 Purchasing Purchasing Approver Purchasing Approved Date Approval Process Department Head CHERYL PATTELLI DH Approved Date 09/21/2023 Final Approval BOCC Approved BOCC Signed Date BOCC Agenda Date 09/25/2023 Finance Approver CHERYL PATTELLI Legal Counsel BRUCE BARKER Finance Approved Date Legal Counsel Approved Date 09/21/2023 09/21/2023 Tyler Ref # AG092523 Originator CPATTELLI Hello