REPORT TO THE CITY COUNCIL FROM: MICHAEL ROGERS, Assistant City Manager Office of Mayor and City Manager BY: KELLY TREVINO, Assistant Director Economic Development Department SUBJECT ..Title Approve the Second Amendment to extend the term of the Agreement for Administration of City of Fresno Revolving Loan Fund Program for six months to May 31, 2025, with Cen Cal Business Finance Group, Inc., a California Non-profit Corporation. ..Body RECOMMENDATIONS Staff recommends Council authorize this Second Amendment to the Agreement with Cen Cal Business Finance Group, Inc., to allow the extension of the term of Administration of the City of Fresno Revolving Loan Fund Program to May 31, 2025. EXECUTIVE SUMMARY The City of Fresno (City) currently has a 5-year agreement with Cen Cal Business Finance Group, Inc. (Cen Cal) to administer the City's Revolving Loan Funds (RLF) Program (Program). This Agreement went into effect on November 22, 2019, and will expire on November 21, 2024. Staff is currently in the process of drafting a Request for Proposals (RFP) for future administration of the Program. That RFP is expected to be released within the next 30 days. This extension serves to provide the additional time necessary to release the RFP, gather and review responses and bring a new agreement to Council for review and approval. That process is anticipated to take approximately four to six months. BACKGROUND The City of Fresno Economic Development Department currently has two revolving loan funds established under the Program with monies from the Economic Development Administration of the United States Department of Commerce (EDA). The original "LEGACY" RLF, which has been in existence since 1980 has a current balance of approximately $760,000, with $80,000 available to lend. The "CARES" Act RLF, established in 2020, has a current balance of approximately $640,000, with $100,000 available to lend. The goal of the Program is to provide financial assistance to businesses that, while creditworthy, are not able to obtain traditional financing from the private sector. The Program serves as a critical component of the City's efforts to diversify and enhance the economic base of the community and enhance the quality of life of its residents. The Program has been administered by Cen Cal (formerly known as Fresno Certified Development Corporation) since January 21, 1999, during which time Cen Cal has demonstrated the ability to meet all requirements and conform to all City and EDA requirements, resulting in a continued "A-rating" with the EDA for the original "LEGACY" RLF. A 5-year agreement was finalized with Cen Cal in November 2019 to continue to administer the Program. That agreement was amended on September 24, 2020 to include administration of the "CARES" Act RLF when it was awarded. ENVIRONMENTAL FINDINGS By the definition provided in the California Environmental Quality Act (CEQA) Guidelines Section 15378, these recommendations do not qualify as a "project" as defined by CEQA. LOCAL PREFERENCE Local preference does not apply to this action because this is an amendment to an existing agreement. FISCAL IMPACT Compensation for the administration of the Program remains payable from and limited to the RLF income generated through the granting and collecting of loans. There is no fiscal impact to the City. Attachments: Second Amendment Original Agreement