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HomeMy WebLinkAboutItem 09 December 21, 2020 Item No. THIRD ROUND OF SMALL BUSINESS EMERGENCY GRANT PROGRAM Proposed Action Staff recommends adoption of the following motion: Adopt a resolution approving the Third Round of Small Business Emergency Grant Program to assist businesses impacted by Minnesota Executive Order 20-99 and allocate $400,000 of additional City funding, Overview At the December 14 Work Session, the City Council directed staff to prepare grant guidelines for a Third Round of Small Business Emergency Grants for businesses impacted by Minnesota Executive Order 20-99 and recommended utilization of up to $400,000 from the City’s General Fund. The businesses impacted by this Executive Order include restaurants with dine-in areas, gyms, fitness clubs, instructional businesses including dance, martial arts, swim schools and entertainment businesses. The proposed Third Round of Small Business Emergency Grants would be a $5,000 grant to only the businesses directly impacted by Executive Order 20-99. If approved on December 21, online applications would open on December 22 and go through December 31. There will be no requirement for the submittal of business financials and if the completed application meets the grant guidelines as proposed, the completed application will constitute the grant agreement. A copy of the proposed guidelines and completed online application are attached. It is anticipated that grant payments would be made during the week of January 4. Businesses will be eligible to receive City grant funds in addition to any grant funds they may receive from Dakota County or the State of Minnesota. Staff recommends approval of the proposed guidelines for the Third Round of Small Business Emergency Grants. Primary Issues to Consider This program will be promoted on the City’s website, the City’s Thrive! Newsletter, and the City will also work with the Chamber of Commerce to get timely information out to eligible businesses. Financial Impact: $ Budgeted: Y☐ N☒ Source: Envision Lakeville Community Values: Diversified Economic Development Report Completed by: David L. Olson, Community & Economic Development Director 400,000, City General Fund (Reserved for Dakota County Recording Information) CITY OF LAKEVILLE DAKOTA COUNTY, MINNESOTA RESOLUTION NO. 20- ______ RESOLUTION APPROVING THIRD ROUND SMALL BUSINESS EMERGENCY GRANTS WHEREAS, there is a global COVID-19 (coronavirus) pandemic; and WHEREAS, the President of the United States has declared a National Emergency; and WHEREAS, the Governor of the State of Minnesota has declared a Peacetime Emergency; and WHEREAS, the City of Lakeville City Council has declared a Peacetime Emergency; and WHEREAS, the City has identified $400,000 from City’s General Fund reserves for COVID-19 relief needs; and WHEREAS, among the restrictions contained in Executive Order 20-99 as amended by Executive Order 20-103, certain businesses of public accommodation including: gyms, fitness and athletic training businesses, dance, martial arts, swimming and similar instructional or entertainment businesses, and restaurants and coffee shops with dine-in seating that were ordered closed until at least January 10 , 2021; and WHEREAS, these businesses have been disparately impacted by this and previous Executive Orders; and WHEREAS, the Executive Orders have limited economic activity at these businesses, making it difficult for the businesses to maintain their operating costs, including, but not limited to payroll, rent, mortgage, inventory and personal protective equipment, and place these businesses at risk of closure; and WHEREAS, the City Council desires to sustain these businesses to ensure that the jobs and economic activity provided by the businesses are maintained in City of Lakeville to support the economic welfare of the City and its citizens; and WHEREAS, the City Council desires to expedite relief to these public accommodation businesses through a grant program as provided in the Emergency Grant Program Guidelines attached hereto as Exhibit A (the “Program”); and WHEREAS, Except as otherwise identified as ineligible under the Program, the grants are intended to serve businesses meeting the following criteria: • Permanent, physical location within Lakeville city boundaries • Business closed to the public from November 20, 2020 through January 10, 2021 in response to Executive Order 20-99 as amended by Executive Order 20-103; and • If a restaurant had dine-in seating for eight or more prior to March 1, 2020 and no drive-thru window • Be a private for-profit business • Is currently in good standing with the State of Minnesota and Dakota County and the City of Lakeville. NOW, THEREFORE, BE IT RESOLVED, That the Lakeville City Council hereby approves the Program and authorizes a business assistance program with the use of up to $400,000, including administration costs, of City funds; and BE IT FURTHER RESOLVED, That the City Council authorizes the City Administrator to approve grants of $5,000 for eligible businesses; and BE IT FURTHER RESOLVED, That the Lakeville City Council hereby amends the 2021 budget as follows: 1) General Fund is amended to transfer $400,000 to the Small Business Emergency Grant Fund using General fund reserves as the funding source. 2) Small Business Emergency Grant Fund is amended in the amount of $400,000 using funds transferred from the General Fund as the funding source. ADOPTED by the Lakeville City Council this 21st day of December 2020. ___________________________ Douglas P. Anderson, Mayor _____________________________ Charlene Friedges, City Clerk EXHIBIT A City of Lakeville Small Business Emergency Grant Program Guidelines Third Round 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 Third Round December 2020 The purpose of the City of Lakeville Small Business Emergency Grant Program – Third Round is to provide emergency assistance to small local businesses in Lakeville, pursuant to The City’s Local Emergency Declaration under Minnesota Statute Chapter 12. Eligible for-profit business applicants will have been adversely impacted by the COVID-19 pandemic. The Third Round will provide grants of $5,000 to small businesses that experienced economic injury related to Minnesota Executive Order 20-99. Funds will help businesses pay for critical expenses such as payroll, rent, mortgage payments, utility bills, and other operational expenses. 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. The Grant Program’s third round 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 $400,000. The City Administrator is authorized to approve grant payments directly to businesses that comply with all Third Round Grant Program Guidelines. Terms • $5,000 grant based on economic injury from Minnesota Executive Order 20-99. • Funds can be used for operating expenses, including rent payments, mortgage payments, payroll, utilities, payments to suppliers, or other critical business expenses (including expenses related to reopening and personal protective equipment). Eligible Businesses Businesses must meet all of the following criteria to be eligible: • Permanent, physical location within Lakeville city boundaries • Business closed to the public from November 20 through December 18, 2020 in response to Minnesota Executive Order 20-99, including those businesses closed but providing solely take-out • Be a private for-profit business • Be in good standing with the City of Lakeville, Dakota County and the State of Minnesota May not be an ineligible business as provided below 20195 Holyoke Avenue, Lakeville, MN 55044 952-985-4400 • 952-985-4499 fax www.lakevillemn.gov Certain businesses are ineligible, including: • Businesses that do not have a physical address in Lakeville city boundaries • Restaurants with drive-thru windows • Restaurant that did not have dine-in seating for eight or more prior to March 1, 2020 • Non-profit organizations • Corporate-owned chains • Businesses engaging in activities prohibited by federal, state or law or regulations • Businesses engaging in gambling enterprises, unless the business earns less than 50% of its annual net revenue from lottery sales NOTE: Third Round applicants will not be disqualified if the business previously received funds from the City of Lakeville Small Business Emergency Grant Programs, Dakota County Business Relief Programs, State of Minnesota Business Relief Programs or federal relief funds (Paycheck Protection Program, Economic Injury Disaster Loan). Application Process • Application Forms will be accepted beginning December 22 through December 31, 2020. • Application forms can be completed and submitted on lakevillemn.gov. • The City will notify 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: o A W-9 and Direct Deposit Form o Any additional 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 on the list. Note: The Lakeville City Council reserves the right to revise these guidelines as needed to best address the impact of the current pandemic.