Adopting the recommendations of the Greater Philadelphia Urban Affairs Coalition's Small Business Lending Task Force, including the three-year, $47 million Small Business Targeted Area Growth Initiative, as a key element of the $500 million Economic Development Investment Fund to increase small business lending by $100 million annually to targeted areas.

WHEREAS, A recent study by the National Community Reinvestment Coalition concluded that, in 2001, Philadelphia ranked last among the 100 largest U.S. metropolitan areas in terms of lending to small businesses located in low and moderate-income census tracts; and

WHEREAS, The Community and Economic Development Committee of the Greater Philadelphia Urban Affairs Coalition formed a Small Business Lending Task Force with the goal of analyzing the issue of lending disparity in Philadelphia’s lower-income and minority areas; and

WHEREAS, The Small Business Lending Task Force, while examining those disparities determined that, in order to make a significant difference in the capitalization of small business in lower-income and minority areas, the following must occur. Business owners must improve their readiness to obtain credit and manage capital, banks must modify their policies and practices, alternative and special loan programs must be expanded, information and communications systems and marketing and outreach programs must improve; and

WHEREAS, To that end, the Small Business Lending Task Force, during testimony before Council’s Committee on Commerce and Economic Development, proposed that the City of Philadelphia invest $47 million in economic development funding to targeted areas over a three year period as follows: $25 million in a loan guarantee fund; $10 million in a Community Development Financial Institution fund; $5 million in a business education fund for small businesses; $5 million in a capacity building fund to underwrite the research and development and support the delivery of new alternative loan and equity products and; $2 million to establish a coordinated information and referral system for small businesses and launch a marketing and public outreach effort; now therefore

RESOLVED, BY THE COUNCIL OF THE CITY OF PHILADELPHIA, That we hereby adopt the recommendations of the Greater Philadelphia Urban Affairs Coalition Small Business Lending Task Force, including the three-year, $47 million Small Business Targeted Area Growth Initiative as a key element of the $500 million Economic Development Investment Fund to increase small business lending by $100 million annually to targeted areas.

End