DEPARTMENT: Center City Development & Operations
DEPARTMENT HEAD: John Jacks
COUNCIL DISTRICTS IMPACTED: Citywide
SUBJECT:
Authorization for Hemisfair to receive Paycheck Protection Program (PPP) Loan
SUMMARY:
An ordinance approving Hemisfair Park Area Redevelopment Corporation (HPARC) to participate in the Small Business Administration's Paycheck Protection Program (PPP) to accept a forgivable loan up to $187,500.00 and to authorize its CEO to execute all applications, notes and other related or required documentation.
BACKGROUND INFORMATION:
On August 13, 2009, City Council approved, through Ordinance #2009-08-13-0025R, the creation of Hemisfair Park Area Redevelopment Corporation (HPARC). HPARC was created to manage and revitalize the Hemisfair area in line with the vision and guiding principles outlined in its Articles of Incorporation (Articles). Per Section 4(e) of the Articles, City Council approval is required for HPARC to enter into any debt instruments.
On September 27, 2012, HPARC was recognized as an established non-profit 501(c)(3) by the Internal Revenue Service (IRS).
Given the Coronavirus (COVID-19) crisis, the federal government established under the Coronavirus Aid, Relief and Economic Security Act (CARES), a Paycheck Protection Program (PPP) to assist with payroll shortfalls and other economic impacts of the crisis.
On April 3, 2020 the Small Business Administration (SBA) allowed lenders to begin processing PPP loan applications, including 501(c)(3) organizations. On April 6, HPARC applied through Frost Bank for loan consideration. On April 16, HPARC was notified by Frost Bank that funds have been secured and loan closing is scheduled for the week of April 20.
PPP is a loan designed to provide direct incentive for small businesses, including non-profit organizations, to keep their workers on payroll. The loan will be fully forgiven if the funds are used for payroll costs, interest on mortgages, rent, and utilities (at...
Click here for full text