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SCHEDULE A <br />Scope of Work <br />$210,000 for the purposes of (i) establishing an emergency revolving loan fund to provide <br />loans to South Bend small businesses (as defined below) and (ii) establishing a loan loss <br />is Grant is <br />intended to be used to directly or indirectly establish an emergency revolving loan fund for <br />small businesses at the CDFI. <br /> <br />The City has a number of requirements as conditions for the providing of this Grant, as <br />described herein: <br /> <br />1. The CDFI will use the funds provided in this Grant exclusively to facilitate the <br />provision of loans or grants to South Bend small businesses, defined as businesses <br />located in the City of South Bend with 50 employees or fewer. Prior to the funding <br />of the Grant, the CDFI will provide the City with a plan and a budget (using the <br />template provided in Exhibit A) that describes how the Grant will be utilized to <br />maximize the impact on small businesses. Acceptable uses of Grant funds include: <br />a. directly establishing an emergency grant fund to provide grants to small <br />businesses throughout the term of this agreement. <br />b. directly establishing an emergency revolving loan fund to provide loans to <br />small businesses throughout the term of this agreement. <br />c. the establishment of a loan loss reserve to provide a credit enhancement to <br />the CDFI. With this credit enhancement, the CDFI must establish an <br />emergency revolving loan fund for small businesses with other CDFI <br />resources. <br />The Grant may not be used for overhead or other expenses without written <br />approval by the City. <br />2. The CDFI must establish criteria for prioritizing loan applications to the emergency <br />revolving loan fund. These criteria should include the following: <br />a. Whenever possible, funds should be targeted towards businesses unable to <br />take advantage of Federal Programs, or unable to receive sufficient funds to <br />continue now or reopen later. <br />b. Businesses who use the loans to maintain payroll and for working capital <br />must be prioritized <br />c. Priority should be given to businesses located in low or moderate income <br />areas, <br /> <br />