HomeMy WebLinkAboutSmall Business Relief Grant Program CC PPT 6-22-20CONSIDERATION OF ESTABLISHING AND ADMINISTERING A SEAL BEACH SMALL BUSINESS RELIEF GRANT PROGRAMJune 22, 2020 City Council
SMALL BUSINESS GRANT RELIEF PROGRAM - BACKGROUNDCOVID-19 significantly impacted Seal Beach businessesSmall businesses hit especially hardMost small businesses were required to close when stay-at-home order issued as not determined to be “essential business”City recently received approximately $562,000 in CARES Act funding from Orange CountyMust be used to provide grants to small businesses to help cover operational costs due to impact from COVID-19
SMALL BUSINESS GRANT RELIEF PROGRAM - SBDCUtilize services of the Orange County/Inland Empire Small Business Development Center (SBDC)The SBDC is a federally-funded resource that provides no-cost consulting services to small businessesSBDC to administer grant program on City’s behalfProviding service to a number of Orange County Cities, such as Newport Beach, Tustin, Fountain Valley, and Los AlamitosWill provide service at no cost to City
SMALL BUSINESS GRANT RELIEF PROGRAM - PROGRAMProgram guidelines have been draftedFollowing CARES Act requirements and similar to other OC city programsGuidelines address eligibility requirements, terms and conditions, grant amounts, eligible activities, documentation requirements, application and award process, and post grant follow-upIntent is to provide straightforward and timely application process in order to award and distribute funds as soon as possibleFunding to benefit approximately 60-80 businesses
SMALL BUSINESS GRANT RELIEF PROGRAM - PROGRAMGrant Amounts:Businesses with 5 or fewer employees up to $5,000Businesses with 6-10 employees up to $7,500Businesses with 11-30 employees up to $10,000Eligibility:Business deemed non-essential and forced to shut down; orSales down more than 25% compared to previous three months; orHad to lay off at least one employee; orOne or more employee contracted COVID-19
SMALL BUSINESS GRANT RELIEF PROGRAM - PROGRAMTerms and Conditions:For-profit business physically located in Seal BeachLocated in commercial or industrial spaceHave an active Seal Beach business licenseHave 30 or fewer employeesAnnual gross receipts of $15,000,000 or less over past 3 yearsIn good standing with City (current on accounts, no liens, no code violations)Disclose if received Paycheck Protection Program (PPP) or Economic Injury Disaster Loan (EIDL) capitalMust be following State and County re-opening guidanceMust submit all required supporting documentation with application
SMALL BUSINESS GRANT RELIEF PROGRAM - PROGRAMEligible Activities:Cover day-to-day business operating expenses, such as rent or mortgage payments, utility bills, payroll, inventory, marketing, or similar Obtaining personal protective equipment for staff and customersApplication Process:Work with SBDC and Chamber to inform local businesses of programTwo webinars will be conductedApplications will be accepted on-line, via email and will provide day to submit in person at City HallSBDC will review applications
SMALL BUSINESS GRANT RELIEF PROGRAM - PROGRAMApplication Process (cont.):If more qualified applications than funds available, a lottery system will be usedSBDC will work with selected applicants to collect all required documentationGrant payment made after all items are receivedApplicant must agree to inspection intended to confirm grant funds being used according to program requirementsPost Grant Follow-upSBDC will work one-on-on with all applicants throughout next 12 monthsSBDC to provide a six-month and twelve-month report to City
SMALL BUSINESS GRANT RELIEF PROGRAM - RECOMMENDATIONCity Council adopt Resolution 7050 approving the Seal Beach SmallBusiness Relief Grant Program and utilize the services of the OrangeCounty/Inland Empire Small Business Development Center for thedistribution of certain CARES Act fund for economic relief to qualifiedSeal Beach small businesses
SMALL BUSINESS GRANT RELIEF PROGRAMQUESTIONS?