03-23-2004 CC RPT 20 - Laserfiche WebLink

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People Serving People CITY OF RIVERSIDE CITY COUNCIL MEMORANDUM Riverside HONORABLE MAYOR AND CITY COUNCIL DATE: March 23, 2004 ITEM NO: 20 SUBJECT: 2002-2003 ANNUAL PERFORMANCE REPORT & 2003-2004 GRANT AGREEMENT - INLAND EMPIRE SMALL BUSINESS DEVELOPMENT CENTER (SBDC) BACKGROUND: The Inland Empire Small Business Development Center (SBDC) serves as one of the primary soumes of technical assistance and advisory services for the small business community in the City of Riverside. Over the last ten (10) years, the City of Riverside has contracted with the SBDC, to provide comprehensive technical assistance to Riverside businesses in the areas of general and financial management, business environmental issues, international trade and government procurement. They also work in conjunction with several non-profit and for-profit lending agencies by assisting clients in securing financial assistance and working capital. During the fiscal year 2002-2003, the SBDC has served approximately 226 clients within the City of Riverside. They have also conducted approximately 82 training sessions (1,407 attendees), and handled 226 cases totaling 951.45 hours of counseling. SBDC has also been involved in business retention and expansion, assisting in creating an estimated 21 local jobs (30 jobs saved or retained as of 6/2003). The SBDC is funded through a grant from the U.S. Small Business Administration. As a condition of continued federal funding, the SBDC is required to raise 54% of their grant monies locally. As such, the SBDC acquires matching funds through a variety of private and public sources, such as: Southern California Edison, Bank of America, Valley Independent Bank and the Cities of San Bemardino, Palm Springs, Murdeta, Indio, Corona and Ontario, to name a few. The SBDC has requested a contribution in the form of a grant from the City of Riverside towards the SBDC's cash match requirement in the amount of $35,000 (see attached letter). Since SBDC inception, the City has previously provided a $25,000 grant for the last ten (10) years. However, the recent increase in minority business assistance has necessitated the hiring of a bi- lingual business counselor; coupled with the loss of state funding, has caused an increase of 54% in local cash match. The Economic Development Corporation Board at their regularly scheduled meeting of October 23, 2002, reviewed these circumstances and recommended approval to the City Council regarding SBDC's request for $35,000 grant. The City Council approved their $35,000 grant at their meeting on Nov. 12, 2002. FISCAL IMPACT: The request for cash match of $35,000 was previously approved as line item (Account #2815000-453101, Small Business Development Center) through fiscal year 2003-2004 Budget adoption. ALTERNATIVES: Failure to provide financial support for the SBDC could jeopardize future grant funding for the program. As stated earlier in the report, futura federal grant funding is contingent upon the SBDC's ability to raise the 54% cash match locally. 20-1