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Home My WebLink AboutC2005-233 - 4/19/2005 - Approved Amendment No. I to the Agreement between City of Corpus Christi Business and Job Development Corporation and ACCION Texas, Inc. Whereas, in July 2004, the City of Corpus Christi Business and Job Development Corporation ("Corporation") and ACCION Texas, Inc. ("ACCION Texas") executed an agreement to provide business and job development incentives; NOW, THEREFORE, the parties agree to amend the Agreement as follows: 1. Section 4. Interest Buy Down Program, is amended to read as follows: "4. Interest Buy Down Program. "a. In consideration for creation and maintenance of new jobs as provided in this Agreement, the Corporation agrees to pay ACCION Texas up to $150,000 for the Interest Buy Down Program as follows: "i. ACCION Texas must first receive a request for a loan from a small business located in Corpus Christi, or a business locating in Corpus Christi ("Business"). "ii. Tho roquest must include tho bucinocc name, name of businoss ownor(c), location of business, type of bucinosc, numbor of new jobs to be created, amount of loan, and amount of intorost buy down program funds roquoctod (up to 7% of the loan interost rata). %.ii_. ACCION Texas shall review the request for a loan from the Business. "N'.iii. Upon ACCION Texas approval of a loan and prior to the closinq or the loan, ACCION Texas shall submit request [o Corporation for tho intorost buy down program funds for tho loan (up to 7% of tho loan) Aqq'ACHMENT "A" to the Corporation requestinq funds to buy down the interest rate from the interest rate allowable per the underwdtinq criteria to 5.5%. The Corporation authorizes an interest buy-down up to 7% of the interest rate to finance the loan. Payment by Corporation shall not exceed $17,500 per loan and shall be calculated using the following formula: ((Loan amount x interest rata (up to 7%))/12 - N. ((Loan amount x interest rate to buy down to 5.5% / 12 = N. N x number of payments = interest buy down reimbursement to ACClON for business loan. (The number of monthly payments shall not exceed sixty Example: ($10,000 x 7%)/12 = 55.33 55.33 x 36 = $2100=amount to be reimbursed to ACCION for business loan. "~.iv. The Corporation shall provide a response to approve or deny the reimbursement for to the Interest Buy Down Proqram funds to ACCION Texas within 2 business days of receipt of Attachment "A" Tho Corporation shall distributo tho interest buy down program funds to ACCIOn Taxa6 within 30 days al receipt of notification of approval of loan undor the interest buy down program. The Corporation shall reimburse funds within 30 days after evidence of closinq the loan is submitted. "v4.v. The total funds available on an annual basis under the Interest Buy Down Program under this agreement is $150,000. 2005-233 04/I 9/05 Res026224 CCBJDC Page 2 of 8 "b. The loans assisted with this program shall be within the range of $!0,000 $5,000 to $50,000. "c. This program shall result in the creation of one permanent full-time job per evew $50,000 in loans assisted with the Interest Buy Down Program within two years of the loans. ACClON Texas shall ensure that the loan will result in the creation of one new full-time permanent job in the city of Corpus Christi. "d. Businesses assisted through this program must be: 1. unable to obtain a loan from a traditional financial institution or unable to qualify for the total needed for a business loan throuqh a bank or credit union, in which case ACCION Texas can loan the remaininq amount with the buy-down interest rate @roqram in coniunction with the bank/credit union. 2. Located in or Iocatinq in Corpus Christi city limits. 3. New or expandinq business or home-based businesses located in the Corpus Christi city limits. 4. Current on payment of all sales tax. 5. Current on payment of all ad valorem taxes in the City of Corpus Christi. "e. The followinq proiects are ineliqible for this proqram: 1. Refinancinq of existinq loans or debt 2. Businesses located outside the Corpus Christi city limits 3. Home-based businesses located outside the Corpus Christi cib,, limits 4. Loans to existinq businesses which are not planninq on expandinq 5. Business retention. "e=it ACCION Texas shall provide the Corporation with quarterly reports as provided in Attachment B to identify the loans made, name and address of the business receiving the loan, jobs created under the Interest Buy Down Program, and other reports as requested by the Corporation. "f~q. ACClON Texas shall provide funds for operations and loan capital to implement and sustain the program. "g~h. ACClON Texas shall develop loan underwriting criteria and payment terms and conditions for its loan program and provide to the Corporation. 2. Section 5. Job Creation Qualification is amended to read as follows: "5. Job Creation Qualification "a. In order to count as a created job under this Agreement, the job must pay wages as required in Section 38 (b) of the Development Corporation Act of 1979, as amended, which is the median waqe ol~ the occupation in the Co~us Christi MSA as de[ermined bv Texas Workforce Commission's Texas Industry Profiles report. ;\Documents and Settings\jbarrera\Local Settings\Temporary Interne[ Files\OLKC4~ACCION Texas April 4 2005 Amd No. 1 .doc Page 3 of 8 "b. A tull-time permanent job is one that provides at least 2,080 hours annually. Tho jobc chall bo primarily ongagod in 6erving a cuctomor baco outcido a 50 milo radiu6 of tho city of Corpus "c. ACCION Texas agrees to confirm and document to the Corporation that each job created undcr as a result of fundinq provided by this Agreement is maintained throughout the term or this Agreemer~ the loan to the Business. "d. ACCION Texas agrees to provide Corporation with a sworn certificate by authorized representative of each small business assisted under this Agreement certifying the number of full- time permanent employees employed by the small business. "e. ACCION Texas shall ensure that the Corporation is allowed reasonable access to persecme~ records of the small businesses assisted under this Agreement." 3. All other terms and conditions of the Agreement remain unchanged. Agreed to by: Corpus Christi Business & Job Development Corporation By' ~IL Title: Date: ~- ~1~ ~ Attest Secretary ACCION Texas, Inc. Janie ~,~rrera President and Chief Execu, t_.[ye Officer STATE OF TEXAS COUNTY OF NUECES ' This instrument was acknowledged before me on /-~i-~/£ I,~ .~ / ,2005, by Janie Barrera, President and Chief Executive orficer for ACCION Texas, Inc., a Texas non-profit corporation, on behalf of ACCION Texas, Inc.. Nota~/Public, State of Texas .t:\Documents and Se~ings\jbarrera\Local SeEings\Temporary Internet Files\OLKC4~ACCION Texas April 4 2005 Amd No. 1.doc Business Name Business Address Business Phone Tax ID # Criteria for Eliqibilib,,. Check all that apply ATTACHMENT A- Request for Interest Buy-Down Business Owner Type of Business [] Unable to obtain a loan from a traditional t~nancial institution [] Located in or locating to the Corpus Christi City. [] Company is a new or expanding business [] Company is current on their sales tax [] Company is current on ad valorem taxes in the Cify of Corpus Chdsti Unbankable Criteria: Please check one and provide a brief explanation [] Credit Score [] Loan to Va~ue Ratio [] Collateral [] Other Bdefly descdbe purpose of loan and how this loan will create a new lob Zip Page 4 of 8 Loan Amount Qualifying Interest Rate Term (months) Buy-Down Request ;\Documents and Settings\jbarrera\Local Settings\Temporary Internet Files\OLKC4~ACCION Texas Apdl 4 2005 Amd No. 1,doc Page 5 of 8 Provide the following information for existing jobs JOb ~sS]flcauon Job title (adm!=iS~ti~e, ~lertcal, managerial, supervisory) Hours per week TOTAL FTE JOBS Provide the fo[[owin9 information for job(s) to be created due to this loan, Job claslificaUon Job flue Number of EsUmated (~d m~!sira Uvei; ~lerlCa!, hours per managerial, supervteory) week TOTAL FTE JOBS ACCION TEXAS Submitled by Title Date Send Attachment 'A" to ATTN: Corpus Christi Business & Job Development Corp. Economic Development Office City of Corpus Christi P.O. Box 9277 Corpus Christi, TX 78469 Fax 361-880-38,45 ;\Documents and Se~tings\jbarrera\Lece[ Settings\Temporary Interne[ FiIes\OLKC4~ACCION Texas Apdl 4 2005 Amd No. 1 .doc Page 6 of 8 ATFACHMENT B - Quarterly Report Corpus Christi Business and Job Development Corporation Please check the box reflecting this report [] July 9-October 8 (Due Nov 1,2004) 2OO5) [] January 9-April 8 (Due May 1, 2005) [] October 9- January 8 (Due February 1, [] April 9- July 8 (Due August 1, 2005) Name of Organization Contact Mailing Address City State. Phone Fax Loan Loss Reserve Program (list businesses secured with loan loss reserve) Busi6ess Rece~vi0g Loan EX: ABC Exports BuSiness Address City Type Amou JObs Jobs ;D~te; De~ul[ Reset nt of Loan Export 1200 CC 50,00 10 textiles Street 0 5 1/4/20 N 50,00 O5 0 ;:\Documents and Settings~jbarrera\Local Settings\Temporary Internet Files\OLKC4~ACCION Texas Apdl 4 2005 Amd No, 1 .doc Page 7 of 8 Capital levera9ed from the Loan Loss Reserve Funding:SoUrce Amount of Capital EX: Bank of Corpus Christi 2501000 DdBati~r~ ~ Loan; loan ;:\Documents and Settings\jbarrera\Local Settings\Temporary Intemet Files\OLKC4~ACCION Texas April 4 2005 Amd No. 1 .doc Page 8 of 8 Interest Buy Down Program Business Business Rec~ving Loan Type Address City EX: ABC Hardware 100 SPID CC 10,000 2 3 1/1/20 Hardware Store 05 1,500 certify that the above information is true and correct to the best of my knowledge and that the businesses benefiting from the funds under the contract have met the criteria under the agreement and the Corpus Christi Business and Job Development Corporations Guidelines for granting business incentives. Signed Title Date Send Attachment "B" to A']-I'N: Corpus Christi Business & Job Development Corp. Economic DevelopmenL Office City of Corpus Christi P.O. Box 9277 Corpus Christi, TX 78469 Fax 361-880-3845 ;:~Documents and Settings~jbarrera\Local SeEings\Temporary Internet Files\OLKC4~ACCION Texas Apdl 4 2005 Amd No, 1.doc