GOALS & OBJECTIVES
The SBAP was established to encourage economic growth that would generally not occur without City assistance. The objectives are to:
· encourage growth and expansion of City businesses
· stimulate the development of minority and women owned businesses
· increase employment opportunities for low and moderate income residents
· expand the real estate tax base
· increase the community export base
· diversify the local economy
· redevelop vacant facilities for productive use
· stimulate investment from all private, not-for-profit and governmental agencies
ELIGIBILITY REQUIREMENTS
· Maximum Amount: The maximum amount of City participation shall generally not exceed $25,000 for retail/commercial projects and $40,000 for manufacturing projects. The Loan Committee can make waiver of this limit, when appropriate.
· Job creation: At least one permanent, full-time job must be created for each $15,000 in SBAP assistance, and the majority of those jobs must be held by low or moderate income persons.
· Eligible activities:
Acquisition of land or buildings
Rehabilitation/New Construction
Machinery or Equipment
Working Capital
(Funds may not be used for regular maintenance of buildings or refinancing. Eligibility for funds to be used as working capital or for purchase of inventory is discretionary depending on each individual case.)
Leveraging: (Leveraging includes funds from sources other than SBAP, including private sources such as the owners, their investors, financial institutions, etc.) Only those funds intended for use in the proposed project are considered. Evidence of 2.5:1 minimum
· "other funds"/SBAP investment ratio is needed for processing of a loan application.
· Current tax status for City and IRS taxes
· Conformity with Fire Prevention and Building Code
· Collateral: All loans must be adequately secured in the amount of the loan.
· Loan grantees may own or lease their business location.
· Term of Lease: Businesses existing as tenants are required to have a lease on property located within the municipal boundaries of the City of Auburn. The lease must extend to or beyond the term of the loan. If a lease of shorter term is not renewed and the business does not enter into another lease agreement for rental of property within the City limits, the remainder of the loan balance must be repaid.
SELECTION CRITERIA
Potential economic impact rating is based on the individual merits of each application. In evaluating Economic Impact Potential, several criteria will be used. These are explained below:
· Type of Business: Each business may be classified as manufacturing, service, or trade (including restaurant and retail). As manufacturing jobs are created, the service and trade sectors are expanded, thereby creating additional "spin-off" jobs. The impacts of service and trade businesses are relatively equal depending upon the size of the operation. These supporting businesses do not usually stimulate the level of additional economic activity as compared with manufacturing businesses. Manufacturing firms will be ranked higher than service or commercial projects.
· Private Investment/City Financing: A primary goal of the SBAP is to stimulate and maximize the leverage of (other) private investment. It is desired the City participate in projects in which high levels of private investment are being leveraged.
· Necessity of Financial Assistance: Since the goal of the SBAP is to "stimulate economic activity which would otherwise not occur in the absence of City participation", the applicant should demonstrate that the project could not be accomplished without City assistance.
· Ratio of new jobs per $15,000 of SBAP assistance: Another objective of the program is to directly create the largest possible number of new permanent full time jobs. Although this objective is addressed in other criteria, it is important to determine the number of jobs a business proposes to be created relative to the actual dollar amount of assistance being requested. Applicants will be required to substantiate proposed employment increases.
· Special Efforts to Employ Low/Moderate Income Persons (required, as the source of the funds used in this program are from HUD and projects must meet HUD objectives and the statutory goals that established the program): Special efforts must be made to ensure that a minimum of 51% of permanent jobs created by the SBAP are made available to low income persons. Specifically, referral activities have been initiated between City development officials and the Cayuga County Employment and Training Center (JTPA), Board of Cooperative Educational Services, New York State Job Service, and the Cayuga County Department of Social Services to identify eligible
individuals and place them in jobs created by SBAP. All participants in SBAP will be required to enter into a contract for First Consideration of low and moderate-income persons.
· Other Criteria: Additional factors may become significant depending upon the specific application. These may include such factors as female or minority ownership, conformity with long range development plans, and location in defined Community Development area.
The SBAP Loan Committee will approve/disapprove ALL modifications to these guidelines on a case by case basis. ANY modifications are at the discretion of the Loan Committee.
INCOME LIMITATIONS
Maximum Gross Income
· Family of One: $30,300
· Family of Two: $34,600
· Family of Three: $38,950
· Family of Four: $43,300
· Family of Five: $46,750
· Family of Six: $50,200
· Family of Seven: $53,650
· Family of Eight: $57,150
* Income figures effective as of 1/28/04. Subject to change by the US Department of Housing & Urban Development.
The Small Business Assistance Program is one of several options for assistance to local businesses available from the City of Auburn. To learn more about the SBAP, or other financing options, please contact the Office of Planning and Economic Development at (315) 255-4115.
| 
