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029-20 - Resolution - Establishing Port Orchard Cares a Small Business Relief Grant Program in Response to COVID-19RESOLUTTON NO. 029-20 A RESOLUTION OF THE CIry OF PORT ORCHARD, WASHINGTON, ESTABLISHING PORT ORCHARD CARES, A SMALL BUSINESS RELIEF GRANT PROGRAM IN RESPONSE TO THE NOVEL coRoNAVr RUS (COV| D-191. WHEREAS, On March 27, 2020, the United States Congress adopted the Coronavirus Aid, Relief, and Economic Security Act ('CARES Act") which, among other things, amended Section 601(a) of the Social Security Act and established the Coronavirus Relief Fund into which Congress appropriated S150 billion to make payments for specified uses to States and certain local governments; and WHEREAS, The Coronavirus Relief Fund is available to reimburse government recipients for necessary expenditures incurred due to the COVID-19 public health emergency that were not accounted for in the government recipient's most-recently appropriated budget and that were incurred during the period between March L,2O2O and December 30, 2O2O; and WHEREAS, Guidance issued by the U.S. Treasury Department indicates that necessary expenditures incurred due to the COVID-19 public health emergency include costs incurred to support local businesses that suffered losses due to COVID-19 business interruptions, or incurred costs for personal protective equipment or other materials, supplies and equipment needed to safely operate following a COVID-19-related closure; and WHEREAS, the City Council believes a functioning local economy is criticalto protect the health and wellbeing of Port Orchard residents, as the failure of small businesses due to the pandemic rlryill create a serious hardship on owners and individuals employed by those businesses, and create additional financial burdens on government services by increasing demand for government support to individuals who are unemployed coupled with a substantial decrease in revenue for the City due to the pandemic; and WHEREAS, the City Council desires to establish Port Orchard CARES, a Small Business Relief Grant Program, the focus of which is to provide short-term economic stability via monetary grants to qualifying businesses located within City limits; and WHEREAS, the City Council finds that this program will serve a governmental purpose by wherein in exchange for cash allocations, qualified small businesses will be able to re-open and provide the City's residents with jobs, services and/or goods, and public services via tax revenue; and WHEREAS, the City Council has directed staff to build a program and utilize general funds for this program, and seek reimbursement from the CARES program; and WHEREAS, the City has limited resources, including limited available personnel, to administer the Program, and desires to partner with a qualified service provider capable of serving as grant administrator, selected due to its unique qualifications for the performance of Resolution No. 029-20 Page 2 of 4 this service during this declared state of emergency; and WHEREAS, the City has developed the grant program and eligibility requirements, based on the requirements for use of funds established by the Washington Department of Commerce, the administrator for the CARES Act funding allocated to the City; and WHEREAS, the City shall allocate no more than $102,000 of CARES ACT funding for this program, with a maximum of 52,000 allocated to a service provider for the administration of the program and 5100,000 for the relief grants to small businesses; now, therefore, THE CITY COUNCIL OF THE CITY OF PORT ORCHARD, WASHINGTON, HEREBY RESOLVES AS FOLLOWS: THAT: The City Council hereby adopts the recitals expressed above as Findings of Fact in support of this Resolution. THAT: The City Council hereby establishes the Port Orchard Cares, Small Business Grant Relief Program, and allocates City general funding in the amount of 5102,000 to be utilized for economic recovery response to the impacts resulting from the COVID-19 pandemic. The City Council specifically directs that the S10Z,OOO be disseminated pursuant to the program criteria attached hereto as Exhibit A. Final selection of the grant recipients shall be determined by the Mayor or designee, based on the parameters set forth in Exhibit A. Each individual grant recipient shall be required to execute a contract with the City memorializing the award, in a form acceptable to the City Attorney. THAT: The City Council directs the Mayor to adopt any necessary administrative processes to implement this resolution and attached policy, and in compliance with the provisions of state law. The Mayor shall report to the Council any actions taken in accordance with this Resolution and shall do so with thirty (30) days of taking such an action. PASSED by the City Council of the City of Port Orchard, SIGNED by the Mayor and attested by the Clerk in authentication of such passage this 14th day of July 2020. ansuu, Mayor P c('r r,) R a randy Rinearson, MMC, City Clerk 8At Resolution No. 029-20 Page 3 of 4 Exhibit A - City of Port Orchard Port Orchard Cares Small Business Relief Grant Program Purpose The City of Port Orchard Small Business Relief and Recovery Grant Program is intended to ensure the economic health of the City of Port Orchard, and thereby improve the public health and welfare for Port Orchard's residents. The grant funded allocated hereunder is designed to help small businesses keep their doors open, protect local jobs threatened by the COVID-l9 pandemic, support community recovery, and increase the resiliency of local businesses in our community. Through the program, eligible small businesses operating in the City of Port Orchard have the opportunity to apply for cash assistance to help with rent and to mitigate the impacts of revenue reductions associated with COVID-L9. The City anticipates awarding eligible small businesses with a one-time cash grant of up to 55,000 based on justifiable need and business resiliency. Administration of Program The City shall supply the cash grants to qualifying small businesses, consistent with the criteria herein. Due to the City's limited personnel, to effectuate this policy, the City may enter into a services agreement with a qualified non-profit organization to facilitate the timely and effective dissemination of these funds to businesses. Criteria for Grant Funding: To be eligible for grant funding, a small business must meet the following criteria: o Must have a Port Orchard business license o Been in business for at least one year prior to the date of the application o Have a physical location in the City of Port Orchard on or before March t,2O2O o Have no more than 15 full-time equivalent employees. o Engage in a type of business eligible to receive funding by the US Small Business Administration: https://www.sba.-sov/partners/lenders/7a-loan-program/terms-conditions- el i gibi l it_y#section -header- I 5 o Ability to demonstrate loss of revenue due to COVID-19 (Priority given to businesses that were required to close due to the Governor's order) o Your business has reopened prior to the date of the application o lf you answer yes to all of the above your business may qualify Permitted Use of Grant Fundine: . Payment and/or reimbursement of business leasehold rents. Up to 6 months of rent from Aprilthru September 2020 up to 55,000 Resolution No. 029-20 Page 4 of 4 Not Permitted Uses for Grant Funding: o Wages, bonuses or draws by you as the owner. (These expenses were eligible under the PPP loans) o Operating expenses other than rent o Businesses that received previous funding under the Working Washington Small Business Emergency Grant program or other local grants o Not eligible for months that landlord provided rent relief o Mortgage payments on owner occupied buildings o Landlord must not have any ownership in business o No homebased businesses Required Documentation From Applicants: o Application - As administered by the non-profit, all businesses seeking funding shall submit an application demonstrating that the business meets the above criteria. o Evidence of Lease and/or Declaration from Landlord evidencing lease o Documentation related to real estate holding company may be required Awards will be made to qualified small businesses applicants, through the execution of an Agreement between the grant recipient and the City. Awarded small businesses may be, through the Agreement, required to report on expenditures and outcomes through a one-time end of program report.