HomeMy WebLinkAboutItem 3.1 - 3505 AC CARES & Small Business Support
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STAFF REPORT
CITY COUNCIL
DATE: November 23, 2020
TO: Honorable Mayor and City Councilmembers
FROM:
Linda Smith, City Manager
SUBJECT:
Alameda County CARES Matching Grant Program and Other Small
Business Financial Support Programs
Prepared by: Hazel L. Wetherford, Economic Development Director
EXECUTIVE SUMMARY:
The City Council will consider adjusting its CARES Spending Plan to re -purpose unused
funds towards the Alameda County CARES Matching Grant Program and include an
additional $54,000 for a total matching grant of $130,000. The City Council will also
consider additional funding to support a small business recovery grant program as a
result of the County’s return to Purple Tier.
STAFF RECOMMENDATION:
Take the following actions: 1) Approve an adjustment to the CARES Act Funding
Spending Plan; 2) Appropriate $130,000 to the Alameda County CARES Matching
Grant Program; 3) Approve the budget change; and 4) Provide feedback on additional
appropriations towards establishing a COVID-19 small business recovery grant
program.
FINANCIAL IMPACT:
The proposed allocation for the Alameda County CARES Grant Matching Program
would require reallocation of $76,000 from the City’s CARES Act Funding Spending
Plan and the additional $54,000 would require using funds from the City’s General Fund
undesignated reserves. Funding for the COVID-19 small business recovery grant
program would also require using funds from the City’s General Fund undesignated
reserves.
DESCRIPTION:
On November 10, 2020, the Alameda County Board of Supervisors redirected $5 million
in County CARES Act funds for a small business grant program in response to the
economic, health and safety impacts of the COVID-19 pandemic. The East Bay
Economic Development Alliance (East Bay EDA) was designated as the administrator
and coordinator of the program for Alameda County. In addition, the Board of
Supervisors also redirected $3 million towards a matching grant program to provide
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additional support for small businesses in incorporated cities for those cities who would
contribute matching funds.
Alameda County CARES Grant - $5 Million
The Alameda County CARES Grant program prioritizes grants for small, local and
emerging businesses within Alameda County to assist with the costs of busin ess
interruption caused by COVID-19. Grants are intended to assist small businesses with
covering necessary costs due to the COVID-19 public health emergency, incurred
between March 17, 2020 and December 30, 2020.
Eligible businesses can receive a one-time grant of $5,000. The grant does not require
a matching contribution from the applicant and will not require repayment. Funds are
limited and not everyone who applies is guaranteed to receive funding. If the number of
applications submitted exceeds the available funding, then applicants will be selected
by lottery. Businesses in unincorporated areas of the County are not eligible for this
grant.
Please refer to Attachment 1 for additional information on the grant program as it relates
to eligibility and the use of funds.
Alameda County CARES Matching Grant - $3 Million
As noted, the Board of Supervisors also reallocated $3 million into a matching program
for those incorporated cities who are interested in contributing additional financial
resources to further help businesses in their respective communities. The matching
grant program is intended to match a city’s contribution dollar-for-dollar, increasing the
odds that more businesses would be selected for a $5,000 grant in their respective
communities. Full details of the Matching Grant option were still being developed at the
time of this report.
Dublin Small Business Emergency Microloan Program
On May 5, 2020, the City Council approved the Dublin Small Business Emergency
Microloan Program to help mitigate the severe impacts of COVID-19 on small
businesses. The City Council appropriated $519,461 towards the first round of funding,
and then as part of the City’s CARES Act Funding Plan, appropriated $467,343 towards
the second round of funding.
The program received 141 applications and was able to assist 100 small businesses (64
restaurants, 26 personal service/other and 10 retailers) with forgivable loans. Due to
some factors, some businesses were not eligible for the program and approximately
$76,000 from round two (CARES Act funding) is available for reallocation.
With the County’s new Matching Grant program, City staff recommends reallocating the
unspent balance of $76,000 towards a match with the County. Also, Staff recommends
the City Council consider increasing the matching contribution to be more proportionate
to what the City’s share may have looked like had the County based it on each cities
population size as opposed to receiving individual requests from the cities.
In looking at the $3 million allocation made by the Board of Supervisors and the City’s
population compared to the rest of the County, the City makes up 4.3% of that total
County population. Therefore, the City’s allocation of the $3 million may have been
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approximately $130,000 when using this methodology.
To contribute $130,000 in matching funds, the City Council would need to appropriate
$54,000 from the City’s General Fund undesignated reserves. The County’s Matching
Grant program would match the City’s funds dollar-for-dollar, for a total of $260,000
available for Dublin businesses. With grant awards of $5,000, the Alameda County
Matching Grant program could assist approximately 50 businesses. It is also worth
noting that applicants from Dublin who are not selected as part of the County’s Matching
Grant program, will still be included in the $5 million grant program. The Matching Grant
does not preclude them from the other grant program but does increase their odds of
being selected for a grant.
Other Small Business Financial Support Programs
As the City Council is aware, the City has worked extensively with individual business
owners, the Dublin Chamber of Commerce and other regional organizations to help
businesses adapt to new health orders issued by the State of California and A lameda
County.
With winter and the rainy season upon us and the recent move to a more restrictive tier
on the State’s Blueprint for a Safer Economy, City staff believe it is critical to augment
existing efforts to assist Dublin businesses, many of whom ha ve shifted operations
outside, reduced capacity indoors, while others remain closed such as family
entertainment centers. The most effective approach to assist with varying recovery
efforts is through a reimbursable grant program that allows for flexibilit y in addressing
current needs. This will allow the City to meet the needs of various business sectors.
The reimbursable grant could provide a menu of eligible expenses that business owners
can seek reimbursement for up to a maximum grant of $10,000 per business.
Staff envisions eligible expenses for reimbursement would include the following items;
however, it is worth noting that it is anticipated that businesses may apply for options
that are relevant to their specific needs.
· Weather Protection and Visibility (i.e. outdoor tents, canopies, heaters, etc.)
· Interior Alterations (i.e. plexiglass partitions, HEPA air purifiers, dividers, etc.)
· Marketing and Business Promotion (i.e. signage, print, social media, etc.)
· Digital Technology Equipment and/or Services (i.e. online or contactless payment
systems, website creation, etc.)
· Personal Protective Equipment, Sanitation or Health and Safety Equipment for
Employees
· Physical Improvements to Install a Take-Out/Pick-Up Window
The proposed grant program would operate as follows:
· Proposed program funding allocation of $1,000,000;
· The maximum grant amount per business will be up to $10,000;
· Applicants must possess a current and active City business license and be in
good standing with the City;
· Applicants would need to adhere to grant program guidelines (currently being
developed);
· Grant eligibility includes expenses incurred to purchase/rent commercial tents or
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approved heaters within the 30 days before approval of the grant program;
· Applications will be reviewed on a first-come, first-serve basis and grant
applications will be accepted until funds are exhausted;
· The grant program is available for independently owned brick and mortar
businesses, not corporately held businesses, non-profit entities, home-based
businesses, hotels, financial institutions, or chain stores.
· Eligible businesses include uses in the retail, restaurant, personal service,
fitness, and family entertainment use categories.
It should be noted that given the current pandemic and the uncertainty o f the business
climate, some small businesses may permanently close even after receiving financial
support.
If the City Council is supportive of this approach, Staff is prepared to bring this back to
the December 1, 2020 meeting for adoption.
STRATEGIC PLAN INITIATIVE:
None.
NOTICING REQUIREMENTS/PUBLIC OUTREACH:
None.
ATTACHMENTS:
1. Alameda County CARES Grant Program Overview
2. Budget Change Form
Alameda County CARES Grant
Program Overview
OVERVIEW
The Alameda County CARES grant program was authorized by the Alameda County Board of Supervisors on
November 10, 2020 when the Board redirected $5 million in CARES Act funds for a small business grant program
in response to the economic, health and safety impacts of the COVID-19 pandemic. Grants are intended to assist
small businesses with covering necessary costs due to the COVID-19 public health emergency incurred between
March 17, 2020 and December 30, 2020. Eligible businesses can receive a one-time grant of up to $5,000.
The program prioritizes grants for small, local and emerging businesses within Alameda County to assist with the
costs of business interruption caused by COVID-19. The grant does not require a matching contribution from the
applicant and will not require repayment. Funds are limited and not everyone who applies is guaranteed to
receive funding.
ELIGIBILITY
Businesses physically located in Alameda County (excluding the unincorporated areas) that have been
negatively impacted by COVID-19
Must agree to follow State of California & Alameda County Public Health Department COVID-19
guidelines to maintain a safe workplace
Employ between 1 and 25 employees (self-employed individuals are also eligible)
Valid business license for the location
Must upload a business IRS Form W-9
Business has been negatively impacted by one of these measures
1. Closure of any length due to COVID-19;
2. Layoff of one or more staff due to COVID-19
Exclusions: Alameda County CARES grants excludes all chain businesses not headquartered in Alameda County,
financial institutions, banks, lenders, landlords of residential or commercial businesses, publicly traded
companies, and non-profit entities.
USE OF FUNDS
Funds from Alameda County CARES grants may only be used for unreimbursed costs incurred from March 17,
2020 to December 30, 2020 for the following items:
Rent/lease/mortgage and utility payments for business facilities
Payroll
Operating Expenses such as supplies, materials, insurance, etc.
Personal Protective Equipment (PPE), sanitation or health & safety equipment
Reimbursement for digital technology equipment and/or platforms
Interior & exterior physical adaptations (e.g., partitions, signage, outdoor seating, etc.)
For details, FAQ, and online application, please
visit: https://eastbayeda.org/grants
Deadline to Apply:
Monday, 11/30 at 11:30 PM
Budget Change Reference #:
From Un-Appropriated Reserves X Budget Transfer Between Funds
From Designated Reserves Other
Account Amount Account Amount
250103.7000.7002 (1001.2501.81998) $54,000.00
11/23/2020
Posted By: Date:
As Presented at the City Council Meeting
**********Finance Use Only**********
CITY OF DUBLIN
City's local match to Alameda County CARES Matching Grant program
REASON FOR BUDGET CHANGE
FISCAL YEAR 2020-21
BUDGET CHANGE FORM
EXP: General Fund - Disaster Preparedness - Grant Match
City Council's Approval Required
ATTACHMENT 3