Meeting Summary
The city council held a study session to discuss proposed modifications to the Go Norman bond proposition 4, focusing on the small business recovery program. Key discussions revolved around refining eligibility criteria, adjusting funding caps for various loan and grant programs, and clarifying the distinction between lobbying and non-profit advocacy efforts. Council members provided extensive feedback to the Economic Development Advisory Board (EDAB) for the next draft.
Key Decisions & Votes
Priority Consideration Weighting
23:00Consensus to strike the phrase 'the highest priority will be given to' for entities demonstrating the greatest negative financial impact, making it a tie-breaker among other criteria instead of an overriding factor.
Employee Cap for Eligibility
50:00Consensus to reduce the maximum number of full-time employees for eligible businesses from 50, with suggestions ranging from 20 to 35 employees for the next draft.
Maximum Loan/Grant Amount
43:00Consensus to reduce the upper limit for the revolving loan program from $125,000, with council members suggesting a range of $75,000 to $100,000 for the next draft.
Technical Assistance Grant Cap and Payment Method
46:00Consensus to implement a cap on the technical assistance or training grant program, with suggestions between $2,000 and $5,000, and to ensure payments are made directly to educational or training institutions, not individuals.
Exclusion of Political/Lobbying Activities
10:00Strong consensus to refine the language to explicitly exclude organizations primarily engaged in political lobbying or campaigning, while seeking to allow for non-profit advocacy with segregated funds.
Eligibility of Real Estate Owners
1:21:00Consensus that the small business recovery program is not intended for individuals whose primary business asset is rental property, as they typically have other means of collateral.
Financial Matters
Go Norman Bond Proposition 4
Proposed $5 million for the small business recovery program.
CARES Act Funding
Discussion on the city's access to $9.6 million allocated from the CARES Act, with a net remaining allocation expected after existing reimbursement requests.
Revolving Loan Program
Initial proposal for up to $125,000 per business (reduced from $250,000). Council discussed further reducing this cap to $75,000-$100,000.
Small Business Non-Profit Recovery Loan Program
For businesses with 10 or fewer employees, eligible for up to $25,000. Startups also eligible.
Wheel of Norman Recovery Grant
For small businesses with 5 employees or less and non-profits impacted by funding sources like hotel bed tax, eligible for up to $10,000.
Micro Grant
Up to $10,000.
Technical Assistance or Training Grant Program
To help businesses modify practices for a COVID-19 environment. Council discussed implementing a cap of $2,000-$5,000 and directing payments to institutions.
Coming Up
Deadlines
- Voter approval for bond issuance: approximately 45 days from voter approval, with funds available in 60-75 days.
- Voting on Go Norman bond package: August 25th.
Watch For
- Clarification on CARES Act funding access and net allocation for the City of Norman (call with Governor's office scheduled for tomorrow).
- Final draft of the small business recovery program to be presented to council next Tuesday night.
- Further discussion on potential use of remaining CARES Act funds for other COVID-19 related local programs, such as outdoor space equipment or rental/mortgage assistance.
Announcements
- Mayor encouraged citizens to research all four bond packages on the city website and vote on August 25th, emphasizing the opportune timing for community investment without immediate personal financial impact until 2022.
Agenda Summary
Go Norman Bond Proposition 4 Update from EDAB
An update and discussion on the proposed small business recovery program, including eligible entities, priority considerations, and funding structures, based on previous council feedback.