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PROPOSED PREVIOUSLY APPROVED ITEM AMENDMENT
Department: Bureau of Economic Development, Office of Economic Development
Request: Listing an additional subrecipient that will provide technical assistance services
Item Number: 25-3953
Fiscal Impact: N/A
Account(s): N/A
Original Text of Item:
FUNDING TO SUPPORT COMMUNITY FINANCIAL INSTITUTION (CFI) SMALL BUSINESS LENDING
WHEREAS, in 2022 item 22-4706, a resolution requesting the Bureau of Economic Development (BED) assess the capital landscape for small businesses in Cook County and provide recommendations on the County's potential role, was introduced to the Board; and
WHEREAS, the assessment focused on two key questions:
* Capital Access Dynamics: What challenges do small businesses face when seeking capital? How have these challenges evolved since the COVID-19 pandemic; and
* County Role: Given these challenges, what role should the County play in expanding access to capital?; and
WHEREAS, in response, BED submitted the report Opportunities for Cook County to Address Access to Capital Challenges for Small Businesses via item 23-5301 to the Finance Committee on November 13, 2023; and
WHEREAS, key findings from this report showed:
* Few community financial institutions (CFIs) in Cook County offer small business lending-despite their critical role in serving underserved communities; and
* Of the 26 certified Community Development Financial Institutions (CDFIs) in the County, only one-third offer small business lending, and few operate at scale; and
* Of the $316 million in identified CDFI investments in Cook County, only 9% ($29 million) supported small businesses; and
* In 2019, CDFI investments in small businesses in Cook County lagged behind peer counties (e.g., $90.1 million in Philadelphia, $34.6 million in New York); and
WHEREAS, the report advised the County to provide grants to CFIs to build their capacity for small business lending; and
WHEREAS, the report recommended that...
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