Memorandum
Date: December 17, 2024
To: The Honorable Lake County Board of Supervisors
From: Benjamin Rickelman, Deputy County Administrative Officer
Subject: Public Hearing - Consideration of a) Closeout of the Community Development Block Grant - Business Assistance Loan Grant number 20-CDBG-12081 b) Closeout the Community Development Block Grant CARES Act Grant number 20-CDBG-CV2-3-003
Executive Summary:
A. The County was awarded grant number 20-CDBG-12081 in the amount of $500,000 in Community Development Block Grant (CDBG) funding for loans to support small businesses. These loans have a 1% interest rate and terms up to twenty years depending on use and debt capacity. The County contracted with Community Development Services (CDS) to implement the loan program. Four loans were approved by the loan committee. The Saw Shop Public House, Agro Lake Garden Supply, Finch Gardens, and the Blue Lakes Market received financing. In all, 46 jobs were created or retained by the allocated funding. Of the 46 jobs created or retained 20 were full time employment and 26 were part-time employment. The CDBG business assistance grant funds have been fully utilized.
B. The County was also awarded grant number 20-CDBG-CV2-3-00324 in the amount of $738,187 in CARES Act CDBG funding to support local businesses recovering from the effects of the COVID-19 pandemic (CV program). This grant is also administrated by CDS. Three loans were approved by the loan committee. A/T Wanzer Excavating and Grading, Lakeport Pet Resort, and the Round River Farms received financing. In all, 5 jobs were created and 11 jobs retained by the allocated funding. The County is disencumbering $200,082 in available loan funds due to changes in the CV program guidelines made by the California Department of Housing and Community Development (HCD) mid-way through the grant term after loans had been disbursed. HCD implemented new restrictions on the use of funds and additional program guideline requirements limiting the use of funds for equipment directly related to protecting employees and customers from covid exposure.
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☒ Well-being of Residents ☐ Public Safety ☐ Disaster Prevention, Preparedness, Recovery
☒ Economic Development ☐ Infrastructure ☐ County Workforce
☐ Community Collaboration ☐ Business Process Efficiency ☐ Clear Lake
Recommended Action: Approve the Closeout of A) Community Development Block Grant - Business Assistance Loan Grant number 20-CDBG-12081 and B) Community Development Block Grant CARES Act Grant number 20-CDBG-CV2-3-00324