HomeMy WebLinkAboutResolution 3310 Authorize submittal of CDBG appplication for HRDC
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COMMISSION RESOLUTION NO. 3310
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN,
MONT ANA, AUTHORIZING SUBMITTAL OF AN APPLICATION ON BEHALF
OF HRDC FOR A COMMUNITY DEVELOPMENT BLOCK GRANT TO
PROVIDE TECHNICAL ASSISTANCE TO SMALL BUSINESSES.
WHEREAS, the City of Bozeman is applying to the Montana Department of
Commerce on behalf of the Human Resource Development Council of District IX (HRDC),
Bozeman, Montana, for a Community Development Block Grant to provide technical
assistance to entrepreneurs and small businesses; and
WHEREAS, the City of Bozeman has the legal jurisdiction and authority to finance,
operate and maintain assistance to HRDC as the community's microbusiness development
corporation.
NOW, THEREFORE, BE IT RESOLVED by the City Commission of the City of
Bozeman, Montana:
Section 1
That the City of Bozeman agrees to conform with the regulations, statutes, terms
and conditions described in the CDBG Certifications for Application.
Section 2
That Clark V. Johnson, City Manager, is authorized to submit this CDBG application
as a participate in the MBDC area jurisdiction of Region 6 to the Montana Department of
Commerce, on behalf of the City of Bozeman to act on behalf of the City of Bozeman, and
to provide such additional information as may be required.
PASSED AND ADOPTED by the City Commission of the City of Bozeman, Montana,
at a regular session thereof held on the 16th day of August 1999.
M~O~~Yor
ATTEST:
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R BIN L. SULLIVAN
Clerk of the Commission
APPROVED AS TO FORM:
July 29, 1999
Robyn Hampton, Administrative Officer
MicroBusiness Finance Program
1424 9th Ave.
P.O. Box 200505
Helena, MT 59620.0505
Dear Robyn,
It is with pleasure that I submit the enclosed Montana Community Development Block Grant
Application to provide $5,000.00 in funding to help the HRDC continue to provide technical
assistance to entrepreneurs in Gallatin, Park and Meagher counties.
The HRDC is the only state certified Microbuiness Development Corporation in this community.
With a lengthy history of providing small business support, the HRDC is the most qualified
agency to provide quality business technical assistance for microbusiness entrepreneurs seeking
to create jobs and improve their livelihoods.
As the community agency selected by the state and Small Business Administration, the HRDC is
the focus of entrepreneurs without access to traditional sources of capital and training. To insure
a sound program, we have provided extensive business technical assistance to a wide variety of
clients. This request for funding will insure this valuable service will continue to benefit small
business in the community.
Please note the Local Government Resolution is in the process of being forward to you. If you
have any questions, do not hesitate to call.
Sincerely,
JEFFREY K. RUPP
Chief Executive Officer
Enclosure:
MONT ANA COMMUNITY DEVELOPMENT BLOCK GRANT (CDGB) PROGRAM
ECONOMIC DEVELOPMENT APPLICATION
for
Technical Assistance to MicroBusiness Development Corporations (MBDCs)
Submitted by
Human Resource Development Council of District IX, Inc.
321 East Main Street, Ste.300
Bozeman, MT 59715
As the state certified MBDC and SBA certified microbusiness lending organization for
Gallatin, Meagher, and Park counties, the HRDC Microloan Program provides small loans
to expand and strengthen existing businesses as well as start up new businesses that are
economically viable in their communities. The critical impediment for the program has
been the lack of business sophistication of the potential borrowers.
Through technical assistance, the HRDC will continue to provide the key elements of
business preparation for potential and existing clients that will improve the success rate for
expansions and new businesses. To this end, the HRDC requests a $5,000 CDBG Technical
Assistance grant to provided training and technical assistance to benefit the areas
entrepreneurs.
Background
In 1989, recognizing that approximately 10% of Montanans are self employed, the HRDC
undertook a program of business technical assistance and lending to provide an opportunity
for low income entrepreneurs to improve their incomes by creating their own jobs.
Through a series of collaborations, each individual received training and one-on-one
assistance to plan and execute marketing and operational efforts to create or expand a
business, thus improving job security. The lending portion of the program insured that
small amounts of capital could be made available when other traditional lending sources
would not provide the opportunity.
As the program evolved, the need for business technical expanded. In 1992, the HRDC
sought and received certification from the Montana Department of Commerce to operate
under the state microlending program as a MicroBusiness Development Corporation
(MBDC) and established its service area of Gallatin, Meagher, and Park counties. In 1993,
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the HRDC became the regional microlending organization for the Small Business
Administration's national program and expanded its sources of lending funds. In
conjunction with these programs, the HRDC also expanded its capacity to provide business
technical assistance to potential borrowers in the absence of other community programs
and resources.
The critical impediment for the program has been the lack of business sophistication of the
potential borrowers. Traditional lenders expect loan applicants to already possess
extensive knowledge of marketing, operational concepts, personnel management skills, and
financial planning ideas accepted throughout the business community. The individuals
seeking microloans frequently have sound ideas, but initially lack the acumen to express
their ideas through traditional business planning.
The HRDC has been able to offer training and one-on-one consulting to potential
borrowers that has benefited both parties. Through rigorous review, potential applicants
have been forced to thoroughly plan and understand the concepts put forward in sufficient
detail to substantially increase their probability of success with the business. By insuring
the applicant seeks and uses pertinent business planning resources, the HRDC has played a
key role in numerous business successes in the communities served even when no loans are
needed. Just as important, the HRDC business planning activities has also assisted
entrepreneurs in evaluating their business ideas and often helped the applicant understand
why the business will not succeed. This role can be equally satisfying because the applicant
often lacks the skills to properly evaluate a business idea and HRDC assistance can save
time and money by helping the applicant avoid entry into a business doomed to failure.
As the state certified MBDC, the HRDC continues to provide business technical assistance
to entrepreneurs both in class room settings and one-on-one basis. It is apparent that the
most usefull means of providing the assistance is through an approach that is tailored to the
skill level and needs of each applicant. With help from the CDBG program, the HRDC will
be able to continue to offer this valuable program to residents in its service area.
HRDC of District IX, Inc. CDBG Technical Assistance Grant
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MONT ANA COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM
ECONOMIC DEVELOPMENT APPLICATION FORM
for
Technical Assistance to MicroBusiness Development Corporations (MBDCs)
Program Year 1999
Application Deadline: Mondav. Aue:ust 2,1999
Under federal CDBG regulations, a county or incorporated city or town is the eligible applicant
I. APPLICANT INFORMATION
A. Applicant Community Information
Local Government Applicant:
Address:
Telephone Number: F AX Number:
Chief Elected Official:
Contact Person:
Address:
Telephone Number: F AX Number:
B. MBDC Information
MBDC:
Address:
Telephone Number: F AX Number:
Contact Person:
Address:
Telephone Number: FAX Number:
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II. FUNDS REQUESTED
A. Regular Technical Assistance Program - Up to $5,000 .................$
B. Competitive Program - Attach narrative justification /
explanation (see Section IILA. below) ...........................................$
C. Total Requested.............................................................................$
A total of$150, 000 is available to the MBDCsfor the competitive grants. Should
requests for funding total more than $150,000, the amount awarded to a
community may be less than the amount requested
III. BENEFIT TO LOW AND MODERATE INCOME (LMI) PERSONS
A. Please check one or more of the following areas to indicate how the MBDC will use
CDBG funds to principally benefit low to moderate income (LMI) persons. For each area
checked, provide a short description. The description should include the MBDC's history
and experience over the last year with loan programs or lending activities to LMI
individuals.
0 The MBDC provides direct funding to microenterprises as defined by HUD. The
individual who owns or is developing the microenterprise, under HUD's
definition of a microenterprise1, can qualify as LMI according to HUD income
limits (1999 income limits and information on how to calculate benefit to low and
moderate income persons, taken from the CDBG Administration Manual, are
attached as Exhibit A)
0 The MBDC provides technical assistance to businesses, and jobs are created or
retained as a result. The resulting jobs may be aggregated over a one-year period.
This must be accomplished at a cost of less than $35,000 in CDBG funding per
job created or retained.
IV. RESOLUTION TO AUTHORIZE APPLICATION
Complete the form in Appendix A. The chief elected official should sign the Form.
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APPENDIX A
SAMPLE RESOLUTION TO AUTHORIZE APp.LICATION
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WHEREAS, the (Name of Town / City / County) i~PIYing to the Montana Department of
Commerce on behalf of (name and address of NIB C) for a Community Development Block
Grant to provide counseling. traininz. and technical assistance to the MBDC's low and moderate
income (LMD clientele;
WHEREAS,. the (Name of Town / City / County) has the legal jurisdiction and authority to
finance, operate, and maintain assistance to the MBDC in its region;
That the (Name of Town / City / County) agrees to conform with the regulations, statutes, terms
and conditions described in the CDBG Certifications for Application, and C.(((.< It.
That (name of Chief Elected Official, or Chief Executive Officer), (title), is authO~SUbmit
this CDBG application as a participant in the MBDC area jurisdiction of Rezion ( ~ ) to the
Montana Department of Commerce, on behalf of (Name of Town / City / County), to act on
behalf of (Name of Town / City / County) and to provide such additioual informatiou as ~
required. r8"'1
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Signed: .v ,..' -' ,
Name: \)1 ~( \
Title: ~.
Date:
Attested:
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