Discussion/Presentation: Economic Development Administration, Revolving Loan Fund Transfer to Rural Community Assistance Corporation.

Presentation regarding award acceptance by Rural Community Assistance Corporation from the City of Flagstaff and the Economic Development Administration for the Transfer of the Revolving Loan Fund.

Rural Development Assistance Corporation would like to present their marketing plan to use the Revolving Loan Funds in Northern Arizona.

There is no direct financial implication for the City.

Information only.

Council Goal - Economic Development, Grow and Strengthen the Economy.

On March 3, 2018, Council approved Resolution #2018-12 approving the award to Rural Community Assistance Corporation and approving the transfer of the Economic Development Administration Revolving Loan Fund.

The U.S. Department of Commerce, Economic Development Administration (EDA) in the 1980's granted to the Arizona Department of Commerce (ADoC) through their Revolving Loan Fund Grant Program monies to assist businesses in all Arizona counties except Maricopa and Pima. ADoC transferred the portfolio to the Northern Arizona Council of Governments (NACOG) in 1997. NACOG worked with the EDA and the City of Flagstaff to transfer the portfolio to the City of Flagstaff in 2015. In 2016, the City of Flagstaff developed a request for proposals seeking a financial lending institution to assist with servicing the EDA RLF program; there were no responses. After further internal consideration, staff developed an RFP to transfer the portfolio. The Rural Community Assistance Corporation responded to the RFP demonstrating great capacity and competence in working across various jurisdictions to assist targeted disadvantaged populations in 13 western states.  The funds will be available in the same geographic area as intended when the City was managing the funds and therefore the potential benefit to Flagstaff residents remains.
 

On March 3, 2018, Council approved Resolution #2018-12 approving the award to Rural Community Assistance Corporation and approving the transfer of the Economic Development Administration Revolving Loan Fund.  On August 2, 2018, Rural Community Assistance Corporation accepted the offer by the City to be the recipient of the award transfer of the Revolving Loan Fund.