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HomeMy WebLinkAboutItem 06.g Date: Item No. AMENDMENT TO THE SMALL BUSINESS EMERGENCY GRANT PROGRAM GUIDELINES Proposed Action Staff recommends adoption of the following motion: Move to approve the proposed amendment to the Small Business Emergency Grant Program Guidelines. Overview On July 6 the City Council approved the guidelines for the Small Business Emergency Grant Program and funded this new program with $484,694 from the City’s federal CARES Act allocation of $4,846,940. The funds may be used for COVID-19-related costs that occur between March 1, 2020, and Nov. 15, 2020, which can include providing financial relief to small businesses. Applications were opened on July 27 and will close on August 7. Community and Economic Development Department staff are recommending the Grant Program guidelines be amended to authorize the City Administrator to approve the grant payments of up to $10,000 to small businesses that comply with all Grant Program guidelines and that were chosen on a first come – first served basis. This is consistent with how the similar grant programs will be administered by Dakota County and cities in the Dakota County that are administering their own grant programs. It is anticipated that the City could be awarding up to 40-50 grants to businesses. Authorizing the City Administrator to approve payment of grants up to $10,000 will significantly expedite the time frame for which businesses will receive grant funding. Staff recommends approval of this proposed amendment to the Small Business Emergency Grant Program Guidelines. Primary Issues to Consider • What is impact of the proposed amendment to the Grant Program Guidelines? It will expedite the time frame that eligible small businesses will receive grants. Supporting Information • Redlined grant program guidelines amendment document Financial Impact: $ Budgeted: Y☐ N☒ Source: Related Documents: Envision Lakeville Community Values: Diversified Economic Development Report Completed by: David L. Olson, Community & Economic Development Director August 3, 2020 484,694 CARES Act funding 20195 Holyoke Avenue, Lakeville, MN 55044 952-985-4400 • 952-985-4499 fax www.lakevillemn.gov City of Lakeville Small Business Emergency Grant Program Guidelines July 2020 (Amended August 3, 2020) To provide emergency assistance to small local businesses in Lakeville adversely impacted by the COVID-19 pandemic, the City of Lakeville Small Business Emergency Grant Program will provide grants of up to $10,000 to small businesses most in need of support. Funds will help businesses pay for critical expenses such as rent payments, mortgage payments, utilities, payments to suppliers, and costs associated with reopening (including Personal Protective Equipment). Providing this support will increase the capacity of small businesses with a physical location in Lakeville to survive the current crisis and will help prevent potential future blight scenarios. These grant funds can be used to ensure a business can afford to operate while maintaining the social distancing guidelines for the safety of its employees and customers. The Grant Program will be administered by the City of Lakeville Community and Economic Development Department. Grant funds will be distributed until the program allocation is exhausted, up to $484,694. The City Administrator is authorized to approve grant payments directly to businesses that comply with all Grant Program Guidelines. Terms •Up to $10,000 grant based on economic injury from COVID-19 related eligible expenses. •Funds can be used for operating expenses, including rent payments, mortgage payments, utilities, payments to suppliers, or other critical non-payroll business expenses (including expenses related to reopening and personal protective equipment) as approved by the fund administrator. Eligible Businesses Businesses must meet all of the following criteria as of March 1, 2020 to be eligible: •Must be a locally owned and operated for-profit business with a physical establishment in the City of Lakeville •Must have at least one employee in addition to the owner as of March 1, 2020 and not more than 25 full-time equivalent (FTE) employees, and under $1 million in annual revenue •Must have been operating since December 1, 2019 20195 Holyoke Avenue, Lakeville, MN 55044 952-985-4400 • 952-985-4499 fax www.lakevillemn.gov • Must be licensed, in good standing, current on property taxes prior to July 15, 2020, if applicable • Must demonstrate a significant loss in revenue since March 15 (no credit score or collateral requirements apply) Certain businesses are ineligible, including: • Home-based businesses; those without a physical establishment, (except in-home childcare providers will be eligible) • Non-profit organizations • Corporate-owned chains (but franchise chains are eligible) • Individuals who have or are currently receiving assistance through the Pandemic Unemployment Assistance (PUA) program • Businesses in default conditions prior to February 29, 2020 • Businesses that primarily derive income from gambling (businesses that allow on-site charitable gambling are eligible) • Businesses that derive any income from adult entertainment • Businesses that derive income from passive investments; business-to-business transactions; real estate transactions; property rentals or property management; billboards; or lobbying In addition to the City of Lakeville Small Business Emergency Grant Program, businesses are strongly encouraged to apply for all available COVID-related funding. However, due to the limited amount of funding and in order to serve as many businesses as possible, businesses will be ineligible to receive duplicative funds from the City of Lakeville Small Business Emergency Grant Program AND State of Minnesota or Dakota County CDA Small Business Emergency Loan funds. Businesses receiving federal relief funds are still eligible for the City of Lakeville Small Business Emergency Grant Program but must use City funds for other eligible expenses than those covered by federal funds. Application Process • Application Forms will be accepted beginning July 27 through August 7, 2020. • Application forms can be completed and submitted on lakevillemn.gov. • If applications exceed the funding available, City of Lakeville Community & Economic Development staff will select grant recipients using a first-come, first-served basis. The City will notify approved applicants by email within 10 business days of the submittal of a complete application. • Upon notice of an approved application, applicants will be required to submit the following within 10 business days: 20195 Holyoke Avenue, Lakeville, MN 55044 952-985-4400 • 952-985-4499 fax www.lakevillemn.gov o 2019 Federal Business Tax Return or appropriate Business Tax Schedule based on entity type. o Evidence of revenue loss related to the COVID 19 pandemic. Applicants should submit documentation that best demonstrates the impact and is deemed acceptable to the Community & Economic Development Department. Some examples of acceptable documentation include Sales Tax Reporting, Period Statements from 3rd-party Sales Platforms, Merchant Services Statements, and Point of Sale or Register reports. o Evidence of employment prior to March 1, 2020. Acceptable documentation may include period reporting from a 3rd-party payroll processor, applicant’s Federal Form 941/Employer’s Quarterly Federal Tax Return, or other State or Federal payroll-related filing. o Any additional documentation or information deemed necessary by the Community & Economic Development Department to determine eligibility, generate loan documents, disburse loan proceeds, or meet program reporting requirements. o Failure to submit required documentation will result in forfeiture of a grant award. Any forfeited grant money will be awarded to the next business application in queue. Note: The Lakeville City Council reserves the right to revise these guidelines as needed to best address the impact of the current pandemic.