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HomeMy WebLinkAboutItem 4.7 - 3511 COVID-19 Small Business Grant Page 1 of 3 STAFF REPORT CITY COUNCIL DATE: December 1, 2020 TO: Honorable Mayor and City Councilmembers FROM: Linda Smith, City Manager SUBJECT: COVID-19 Small Business Recovery Grant Program Prepared by: Hazel L. Wetherford, Economic Development Director EXECUTIVE SUMMARY: The City Council will consider approving a COVID-19 Small Business Recovery Grant Program to help mitigate the severe impacts of the pandemic and health orders on small businesses. Due to the inclement weather and the move to a more restrictive tier on the State’s Blueprint for a Safer Economy, many small businesses have had to reduce their indoor capacity, shift operations outdoors, or close their doors again. STAFF RECOMMENDATION: Adopt the Resolution Approving the Dublin COVID-19 Small Business Recovery Grant Program and approve the budget change. FINANCIAL IMPACT: The proposed COVID-19 Small Business Recovery Grant Program would require using $1,000,000 from the City’s General Fund undesignated reserves. DESCRIPTION: At its November 23, 2020 Special City Council meeting, the City Council received a report on the negative impacts that COVID-19 has had on the small business community and provided direction to bring back a COVID-19 Small Business Recovery Grant Program. As the City Council is aware, Staff have 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 Alameda 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, Staff believes it is critical to augment existing efforts to assist Dublin businesses, many of whom have shifted operations outside, reduced capacity indoors, while others such as family entertainment centers Page 2 of 3 remain closed. The most effective approach to assist with varying recovery efforts is through a reimbursable grant program that allows for flexibility in addressing current needs. This will allow the City to meet the needs of various business sectors. Funding Staff is recommending $1 million in funding for the new recovery grant program, which could assist 100 businesses if all of them received the full $10,000 grant; however, Staff anticipates receiving numerous requests with varying dollar amounts, stretching the funding to more than 100 businesses. Funding for the program would come from the City’s General Fund undesignated reserves, which requires City Council approval of a budget amendment. Requirements and Restrictions Under the proposed Program, eligible businesses include those in the retail, restaurant, personal service, fitness, and family entertainment categories. Eligibility criteria would include, but not be limited to, the following items: • Independently owned, brick-and-mortar businesses located in the City of Dublin (this program is not intended for corporately held businesses, non-profit entities, home-based businesses, hotels, financial institutions, or chain stores). • Possess an active City of Dublin Business License. • Be in good standing with the City of Dublin (no open building, fire, or code enforcement cases). • Adhere to State and County health orders and industry guidelines. • Maximum grant amount per business will be $10,000. • Reimbursement requests would include expenses incurred during the COVID-19 pandemic starting on March 16, 2020. • Applications will be reviewed on a first-come, first-served basis and accepted until funds are exhausted. • Applicants would need to provide receipts for all expenditures. • Applicants who received a Dublin Small Business Emergency Microloan Program would not be able seek reimbursement for expenses that were covered by the Microloan Program. Eligible Expenses The reimbursable grant would cover a menu of eligible expenses that business owners can seek reimbursement for up to a maximum grant of $10,000 per business. Eligible expenses for reimbursement are for pandemic expenses only and would include, but not be limited to, the below items. It is worth noting that Staff envisions businesses applying for options that are relevant to their specific needs that may not be listed, and Staff would review those requests on a case-by-case basis. Eligible Expense Maximum Amount Weather Protection and Visibility (i.e. outdoor tents, canopies, heaters, etc.) $10,000 Interior Alterations (i.e. plexiglass partitions, HEPA air purifiers, dividers, etc.) $10,000 Physical Improvements to Install a Take-Out/Pick-Up Window $10,000 Page 3 of 3 Digital Technology Equipment and/or Services (i.e. online/contactless payment systems, website creation, etc.) $5,000 Personal Protective Equipment, Sanitation or Health and Safety Equipment for Employees $5,000 Marketing and Business Promotion (i.e. signage, print, social media, etc.) $5,000 Time Frame Applications will be accepted on a first-come, first-serve basis and will be considered complete when all required documentation is submitted. Applications will be accepted through March 31, 2021 at 5:00 p.m. or when funding has been exhausted, whichever occurs first. It should be noted that given the current pandemic and the uncertainty of the business climate, some small businesses may permanently close even after receiving financial support. STRATEGIC PLAN INITIATIVE: None. NOTICING REQUIREMENTS/PUBLIC OUTREACH: None. ATTACHMENTS: 1. Resolution Approving the Dublin COVID-19 Small Business Recovery Grant Program 2. Budget Change Form RESOLUTION NO. XX- 20 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN APPROVING THE DUBLIN COVID-19 SMALL BUSINESS RECOVERY GRANT PROGRAM WHEREAS, at its November 23, 2020 Special Meeting, the City Council received a report on the negative impacts that COVID-19 has had on the small business community and provided direction to bring back a COVID-19 Small Business Recovery Grant Program; and WHEREAS, small business owners in these circumstances may face possible evictions, layoffs, or be forced to permanently close as a result of the pandemic; and WHEREAS, 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 Alameda County; and WHEREAS, with the winter and rainy season upon us and the recent move to a more restrictive tier on the State’s Blueprint for a Safer Economy, Staff believes it is critical to augment existing efforts to assist Dublin businesses, many of whom have shifted operations outside and reduced capacity indoors, while others such as family entertainment centers remain closed; and WHEREAS, the most effective approach to assist with varying recovery efforts is through a reimbursable grant program that allows for flexibility in addressing current needs; and WHEREAS, Staff is recommending the allocation of $1 million from the General Fund Undesignated Reserve to fund a new Program; and WHEREAS, under the proposed COVID-19 Small Business Recovery Grant Program, eligible businesses include those in the retail, restaurant, personal service, fitness, and family entertainment categories; and WHEREAS, eligibility criteria would include, but not be limited to the following items: • Independently owned, brick and mortar businesses located in the City of Dublin (this program is not intended for corporately held businesses, non-profit entities, home-based businesses, hotels, financial institutions, or chain stores). • Possess an active City of Dublin Business License. • Be in good standing with the City of Dublin (no open building, fire, or code enforcement cases). • Adhere to State and County health orders and industry guidelines. • Maximum grant amount per business of $10,000. • Reimbursement requests would include expenses incurred during the COVID-19 pandemic starting on March 16, 2020. • Applications will be reviewed on a first-come, first-serve basis and grant applications will be accepted until funds are exhausted . • Applicants would need to provide receipts for all expenditures. • Applicants who received a Dublin Small Business Emergency Microloan Program would not be able seek reimbursement for expenses that were covered by the Microloan Program. WHEREAS, the reimbursable grant will cover eligible expenses that business owners can seek reimbursement for up to a maximum of $10,000 per business; and WHEREAS, eligible expenses for reimbursement are for pandemic expenses only and would include, but not be limited to, the following items: Eligible Expense Maximum Amount Weather Protection and Visibility (i.e. outdoor tents, canopies, heaters, etc.) $10,000 Interior Alterations (i.e. plexiglass partitions, HEPA air purifiers, dividers, etc.) $10,000 Physical Improvements to Install a Take-Out/Pick-Up Window $10,000 Digital Technology Equipment and/or Services (i.e. online/contactless payment systems, website creation, etc.) $5,000 Personal Protective Equipment, Sanitation or Health and Safety Equipment for Employees $5,000 Marketing and Business Promotion (i.e. signage, print, social media, etc.) $5,000 WHEREAS, Staff envisions businesses applying for options that are relevant to their specific needs that may not be listed, and Staff would review those requests on a case -by-case basis. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin does hereby approve the Dublin COVID-19 Small Business Recovery Grant Program. BE IT FURTHER RESOLVED that the City Council authorizes the City Manager to take administrative action, and make any minor amendments to the Program, to carry out the intent of this Resolution. PASSED, APPROVED AND ADOPTED this 1st day of December, 2020 by the following vote: AYES: NOES: ABSENT: ABSTAIN: ___________________________________ Mayor ATTEST: _______________________________________ City Clerk Budget Change Reference #: From Un-Appropriated Reserves X Budget Transfer Between Funds From Designated Reserves Other Account Amount Account Amount 250105.7000.7002 (1001.2501.64011)$1,000,000.00 12/1/2020 Posted By:Date: As Presented at the City Council Meeting **********Finance Use Only********** CITY OF DUBLIN COVID-19 reimbursable grant program for Dublin businesses 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