12-20 EDA Resolution No. 35
EDA RESOLUTION NO. 35
RESOLUTION GRANTING AN EXTENSION TO REPAYMENT
OBLIGATIONS AND INTEREST ACCRUALS RELATED TO COVID-19
SMALL BUSINESS ASSISTANCE FORGIVABLE LOAN PROGRAM
WHEREAS, the spread ofCOVID-19inthe United States and Minnesota
has raised serious public health concerns and resulted ina great deal ofuncertainty,
and much remains unknown about the virus andhow it spreads; and
WHEREAS, on March 11, 2020, the World Health Organization determined that
theCOVID-19outbreakconstitutesapandemic,andonMarch13,2020,anational
state of emergency was declared as a result of the pandemic; and
WHEREAS, on March 13, 2020, Governor Tim Walz issued Emergency
Executive Order 20-01 declaring a state of peacetime emergency to address the COVID-
19pandemicinMinnesota,whichtriggeredactivationoftheemergencymanagement
planoftheCityofRichfield,Minnesota(theandenabled theCitytoexerciseits
emergency powers; and
WHEREAS, the Governor subsequently issued additional Executive Orders
to combat the impacts ofCOVID-19 within the State of Minnesota, which include
closures of schools, bars, restaurants, and other places ofpublic accommodation,
and directing Minnesotans tostayathome (with exceptions for obtaining
necessary supplies, healthcare and similar needs) unless they are engaged in critical
sector work; and
WHEREAS, on March 16, 2020, the Mayor of the City issued a proclamation
declaring a local
appropriate community containment and mitigation strategies and authorizing city staff to
take actions deemed necessary to protect the public health and safety; and
WHEREAS, the Richfield Economic Development Authority (the
has the power ofa housing and redevelopment authority and an economic
development authority and may provide forgivable loans tobusinesses for purposes
ofpreventing blight and preventing substantial and persistent unemployment; and
WHEREAS,onApril20,2020, the Authority approved the COVID-19
Small Business Assistance -
area businesses with the expenses incurred and specifically caused by the impact
of the Orders; and
WHEREAS,inordertocontinuetoretain small businesses inthe City, on
September 21, 2020, the Authority created a second round ofthe COVID-19
Loan Program to assist area businesses with the expenses incurred and specifically
caused by
Orders; and
EDA Resolution No. 35 1
WHEREAS, in accordance with the terms of the COVID-19 Loan Program,
the loans provided under the program shall beforgivenifrecipientsofsuch loans
provide evidence of authorized expenditures by December 31, 2021; and
WHEREAS, the Authority has determined that it is in the best interests of the
City to extend such deadline to June 30, 2022, which would subsequently extend the
interest accrual and repayment obligations of all outstanding loans; and
NOW, THEREFORE, BE IT RESOLVED, by the Board of Commissioners of
the Richfield Economic Development Authority as follows:
1.ThedeadlineforrecipientsofloansundertheCOVID-19LoanProgramto
submitevidenceof authorizedexpendituresisherebyextendedfromDecember31,2021to
June30,2022,andalloutstandingloansshallnotbegintoaccrueinterestorrequire
repayment until June 30, 2022.
2.
havethediscretiontomakechangestotheloanprogramguidelinesandtheloanprogram
documentsasneededtoconformwiththemostrecentguidancefortheuseofCARESAct
fundsandtoconformtheCOVID-19LoanProgramtotheneedsofthesmallbusinessesin
the City.
3.This resolution shall be in full force and effect as of the date hereof.
Adopted by the Richfield Economic Development Authority this 20th day of December,
2021.
Mary B. Supple, President
Melissa Poehlman, Interim Executive Director
EDA Resolution No. 35 2