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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 - BACKGROUNDCOVID-19 significantly impacted Seal Beach businessesSmall businesses hit especially hardMost 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 CountyMust be used to provide grants to small businesses to help cover operational costs due to impact from COVID-19 SMALL BUSINESS GRANT RELIEF PROGRAM - SBDCUtilize 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 businessesSBDC to administer grant program on City’s behalfProviding service to a number of Orange County Cities, such as Newport Beach, Tustin, Fountain Valley, and Los AlamitosWill provide service at no cost to City SMALL BUSINESS GRANT RELIEF PROGRAM - PROGRAMProgram guidelines have been draftedFollowing CARES Act requirements and similar to other OC city programsGuidelines address eligibility requirements, terms and conditions, grant amounts, eligible activities, documentation requirements, application and award process, and post grant follow-upIntent is to provide straightforward and timely application process in order to award and distribute funds as soon as possibleFunding to benefit approximately 60-80 businesses SMALL BUSINESS GRANT RELIEF PROGRAM - PROGRAMGrant Amounts:Businesses with 5 or fewer employees up to $5,000Businesses with 6-10 employees up to $7,500Businesses with 11-30 employees up to $10,000Eligibility:Business deemed non-essential and forced to shut down; orSales down more than 25% compared to previous three months; orHad to lay off at least one employee; orOne or more employee contracted COVID-19 SMALL BUSINESS GRANT RELIEF PROGRAM - PROGRAMTerms and Conditions:For-profit business physically located in Seal BeachLocated in commercial or industrial spaceHave an active Seal Beach business licenseHave 30 or fewer employeesAnnual gross receipts of $15,000,000 or less over past 3 yearsIn 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) capitalMust be following State and County re-opening guidanceMust submit all required supporting documentation with application SMALL BUSINESS GRANT RELIEF PROGRAM - PROGRAMEligible 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 customersApplication Process:Work with SBDC and Chamber to inform local businesses of programTwo webinars will be conductedApplications will be accepted on-line, via email and will provide day to submit in person at City HallSBDC will review applications SMALL BUSINESS GRANT RELIEF PROGRAM - PROGRAMApplication Process (cont.):If more qualified applications than funds available, a lottery system will be usedSBDC will work with selected applicants to collect all required documentationGrant payment made after all items are receivedApplicant must agree to inspection intended to confirm grant funds being used according to program requirementsPost Grant Follow-upSBDC will work one-on-on with all applicants throughout next 12 monthsSBDC to provide a six-month and twelve-month report to City SMALL BUSINESS GRANT RELIEF PROGRAM - RECOMMENDATIONCity 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?