2020.08.05 EDC Packet - Laserfiche WebLink

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STAFF Memorandum Small Business Emergency Assistance Program To: Economic Development Commission From: Ben Gozola, Assistant Director DCAD Meeting Date: 8/5/20 INTRODUCTION Good news! The City of New Brighton received its share of CARES Act funding last week (≈$1.7M), and the Council is currently determining how those funds will be allocated and spent. While a majority of the funds will go towards covering the City’s COVID-related expenses, it is expected that at least a portion of the funding will be explicitly assigned to assist our local businesses with overcoming this storm. Anticipating this will happen, the EDC has been recalled from its summer break to provide its recommendations on parameters for a potential small business emergency assistance program. ROAD MAP TO ESTABLISHING ASSISTANCE PROGRAMS In general, the following steps will be taken in the coming weeks to establish local assistance programs: 1.Council must determine what programs should be established: business assistance, mortgage/rental assistance, or both (in progress). 2.Council must determine the amount of CARES Act funding to allocate to each program (in progress). 3.Council must finalize general guidelines for desired programs (EDC guidance requested). 4.Council must adopt a resolution approving the administration of CARES Act funds by the EDA for whichever programs are approved. 5.EDA must adopt a resolution accepting the funds, describing the programs, and authorizing service agreements with partnering agencies to administer the programs on behalf of the EDA. 6.Once EDA program authorizations are in place, staff will work with our partnering agencies to set up administration agreements. Roseville is currently negotiating out similar agreements with our proposed partners, so we intend to follow their lead in this regard. 7.Once agreements are signed, the programs can launch! FEDERAL FUNDING PARAMETERS City staff will continually look to our legal counsel for guidance on evolving Federal requirements, but in general, all grant money (regardless of its source) must meet the following parameters to receive funding: •The business must demonstrate that it has been directly and adversely affected by the COVID-19 pandemic, and/or be an industry specifically named by Executive Order. •Incurred expenses to be reimbursed by the grant must be necessary expenditures due to COVID (i.e., infrastructure to accommodate customers in a post-COVID world such as barriers at registers would be eligible, whereas new wallpaper to improve a business’ aesthetic would be ineligible).