Memorandum
Date: January 9, 2024
To: The Honorable Lake County Board of Supervisors
From: Benjamin Rickelman, Deputy County Administrative Officer
Subject: Consideration of Resolution Requesting Extension of Community Development Block Grant Microenterprise Program
Executive Summary:
The County entered into an agreement with the California Department of Housing and Community Development (HCD) on May 26, 2021, for the purpose of implementing a Community Development Block Grant (CDBG) funded microenterprise program to assist local small businesses. The grant is in the amount of $250,000. The microenterprise program began operation in January 2023 and is currently assisting over thirty micro businesses with business planning, cash flow management, accessing capital, marketing and using QuickBooks. Technical assistance is provided at workshops and through one-on-one consultations. The grant is scheduled to terminate on May 26, 2024.
HCD had previously informed local jurisdictions the next application cycle for CDBG funding would occur in January 2024. However, HCD announced on December 13, 2023, that the application cycle would be delayed until Summer or Fall of 2024 because HCD is intending to implement a new application and reporting software and needs time to prepare. Therefore, the grant application and funding cycle is now delayed for nine months.
We are recommending the Board of Supervisors request a twelve-month extension of agreement 20-CDBG-12082 so the microenterprise program can continue operations up to May 2025. This extension would provide program continuity which would mitigate the negative impacts of the recently declared delay in the funding application cycle and allow the county to utilize the full grant allocation. We anticipate that without the extension, approximately $85,000 of the grant funds would revert to HCD.
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