To: Board of Supervisors
From: County Administrative Office
Agenda Section: Consent
SUBJECT:
title
Amendments to the Headwaters Revolving Loan Fund Master Participation and Lender Agreements with Redwood Region Economic Development Commission (RREDC) and Arcata Economic Development Corporation (AEDC)
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RECOMMENDATION(S):
Recommendation
That the Board of Supervisors:
1. Approve a resolution authorizing the Board Chair to sign the RREDC Second Amendment of the Master Participation Agreement and the Fourth Amendment to the RREDC Lender's Manual; and
2. Approve a resolution authorizing the Board Chair to sign the AEDC Second Amendment of the Master Participation Agreement.
Body
SOURCE OF FUNDING:
Headwaters Fund (1120286)
DISCUSSION:
The Headwaters Fund (HWF) board has supported economic development in Humboldt County through the efforts of the Revolving Loan Fund, Community Investment Fund and Grant Fund initiatives since its inception. To support these efforts, the county has contracted with RREDC and AEDC to underwrite and service loans facilitated by the HWF. Staff is bringing forward two resolutions (Attachments 1 & 2) which if approved will result in the amendment to the Lenders Agreement (LA) with RREDC and Master Participation Agreements (MPA) with RREDC and AEDC.
The objective of the amendment to the RREDC LA (Attachment 3) is to resolve a minor issue over Emergency COVID Loans issued in 2020 as well as return of funding to the county distributed through Emergency COVID Loans. The objective of the amendments to the MPA's is to encourage RREDC to use HWF for local loans over alternative sources of capital available to lenders which will result in greater returns for the HWF.
RREDC LA Amendment:
In response to the COVID-19 pandemic and shelter in place orders issued by the state, staff from HWF, RREDC, AEDC, various cities, several chambers, and non-profit foundations met to discuss the best way to provide immediate aid to local bu...
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