Lorain City Council, which is typically in recess during August, held a special meeting on August 12 to approve accepting $100,000 in technical assistance from Enterprise Community Partners, funded by the Robert Wood Johnson Foundation. The assistance will help the city apply to the U.S. Department of Housing and Urban Development’s (HUD) Section 108 Loan Guarantee Program.
Building, Housing and Planning Director Matt Kusznir explained the program would allow Lorain to borrow up to $6.3 million, five times its annual Community Development Block Grant allocation, to create a revolving loan fund for local businesses. Loans would be at least $100,000, open to qualifying businesses citywide, and must be repaid within 20 years. Interest costs would be passed to borrowers.
Councilman Tony Dimacchia opened the discussion with questions about the program’s purpose, potential obligations to Enterprise Community Partners, and how the city would protect itself if borrowers default. Kusznir responded that loans would require strict underwriting, collateral, and council approval, noting the city’s past success in recovering funds.
Councilwoman Beth Henley asked about eligibility for LLCs, while Councilwoman Pamela Carter asked whether new businesses could qualify and how the loans would be audited. Kusznir said both new and existing businesses could be eligible if they met federal guidelines, and that larger loans would require enhanced monitoring procedures.
Safety-Service Director Rey Carrion described the city’s past use of Section 108 funding for projects like The Antlers and the East Side Industrial Park, and linked the new program to Lorain’s redevelopment strategy for the waterfront, industrial sites, and urban renewal districts.
Councilman Dan Nutt asked about the repayment period, and Kusznir confirmed HUD loans cannot exceed 20 years.
The ordinance passed unanimously.
In other business, council sent proposed changes to zoning and code requirements for manufactured homes, trailers, and certain single-family dwellings to a second reading. Members also voted to withdraw an ordinance from the agenda that would have removed the Police Department’s Data Administrator position and created a Police Support Specialist 3 role.
The meeting adjourned.
Council is expected to reconvene in September, typically on the first Monday evening at 6:00 p.m. in the Council Chamber of City Hall. Because that day coincides with the Labor Day holiday, the meeting would likely be held the following day. As of now, a date has not been publicly scheduled.