ACTION REQUESTED:
Title
Communication from the City Manager with a Request to APPROVE the SMALL BUSINESS R.I.S.E. PROGRAM, Using American Rescue Plan Act (ARPA) Funds.
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BACKGROUND: The City Council in its biannual budget allocated $2.4 million of American Rescue Plan Act (ARPA) funds in FY2022 to provide economic and business development assistance to business struggling through the COVID pandemic. The planned use of funds were directed toward:
a) small business support,
b) entrepreneurship and innovation, and,
c) workforce development and training (approved by City Council in February 2022)
The ARPA funds are to be used according to guidelines stated in the US Treasury Final Rules (see attached “Eligibility of Recipients”) to address the immediate harm and long-term impacts of the pandemic on small businesses.
In support of small businesses staff developed the Small Business Recovery, Income, Startup, and Expansion (R.I.S.E) Program. The Small Business R.I.S.E. Program is a comprehensive set of programs designed to address the immediate and long-term financial hardship and challenges small businesses have been facing due to the COVID pandemic. The Program requested FY2022 budget is $350,000. Upon City Council approval the program is expected to launch in April.
The set of programs is as described:
• Recovery Support - Businesses that suffered revenue and or income losses may be eligible to recover their losses if they can demonstrate year-over-year losses prior to COVID and/or during COVID. The year-over-year losses may cover up to two-years of “recovery funds” since the pandemic was declared a national emergency March 13, 2020.
• Income Support - Businesses currently suffering losses or financial hardships may be eligible for up to 6 months of “runway” funding to sustain their business through COVID. Businesses must demonstrate how grants funds will sustain their operations via a 6-month budget and/or present how funds will address financial hardships such as unmet obligations or delinquencies in rent, utility, debt, and licensing payments.
• Startup Support - Businesses who recently started operations within the year of their application or entrepreneurs seeking to startup a new business may be eligible to receive “ramp-up” funds. Grant funds can be used for startup costs and/or a up to 6 months of funds towards stabilization of cashflow. Business must present past expenditures or a proforma income statement of at least 12 months.
• Expansion Support - Business who have or are going to pursue growth initiatives may be eligible for “revitalization” funds for capital and/or operation cost. Grants may be used for physical expansion, capacity growth (machinery & equipment), and job growth (hiring additional employees). Business must present paid receipts or budgets showing capital and operating costs.
The Small Business R.I.S.E. Program will provide funds up to $50,000 for each of the four programs and below are some broad program parameters:
• Businesses throughout Peoria will be eligible for at least one program. The programs will meet the financial needs of many Peoria businesses combating COVID in various stages of their business life cycle-recovery, survival/sustainability, startup, and expansion.
• Businesses might be eligible for two or more ARPA programs within the year. The programs are designed to use in concert with one other to meet the businesses strategy from recovery to expansion. Thus, a business may apply for a Façade Grant along with a Recovery Support Grant.
• Business may apply for additional rounds of funding within the current year or future years so long as program funds are a) allocated by City Council by December 31, 2024, b) budgeted and available in the ARPA fund pool, and c) awarded and disbursed by December 31, 2026.
• Administrative approval up to $50,000 will be limited on a program-by-program basis, and a round-by-round basis. Thus, an applicant may receive a grand total of more than $50,000 by applying for more than one ARPA program and/or receiving second round funding.
• Additional rounds of funding for each program will be released after it’s been determined that first round applicants have been reviewed/awarded and new applications deplete to low levels.
• Businesses will apply through the City of Peoria Business One Stop Shop (BOSS) online platform at
(<https://theboss-peoria.civicserv.com/>) to streamline the process. Paper applications are not permitted, but allowances will made under special circumstances.
• The application fee of $50.
• If needed, ARPA funds will be used to assist the City in promoting the programs and/or partnering with business service providers/agencies to assist businesses with their application(s).
A detailed program overview is provided in the attached matrix.
FINANCIAL IMPACT: A $350,000 allocation of ARPA funds is assigned to the RISE Program. The funds would sustain many Peoria businesses which will in turn continue to generate and support property and retail sales tax.
NEIGHBORHOOD CONCERNS: This benefit is available to all business of which many are located in commercial corridors and support neighborhood revitalization.
IMPACT IF APPROVED: City would sustain and preserve the jobs, investment, and taxes generated by small business in Peoria.
IMPACT IF DENIED: City would find other uses of ARPA funds.
ALTERNATIVES: Council could modify the program.
EEO CERTIFICATION NUMBER:
WHICH OF THE GOALS IDENTIFIED IN THE COUNCIL’S 2017 - 2032 STRATEGIC PLAN DOES THIS RECOMMENDATION ADVANCE?
1. Financially Sound City
2. Grow Peoria
3. Beautiful Peoria
WHICH CRITICAL SUCCESS FACTOR(S) FROM THE COMPREHENSIVE PLAN DOES THIS RECOMMENDATION IMPLEMENT?
1. Grow employers and jobs.
2. Support sustainability.
DEPARTMENT: City Manager's Office