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 finan...
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