Agenda - Council - 07/28/2020 - Laserfiche WebLink

Home

CC Regular Session Meeting Date: 07/28/2020 Submitted For: Sean Sullivan, Community Development By: Sean Sullivan, Community Development 5.9. Information Title: Adopt Resolution #20-154 Approving Small Business Grant Program - Phase 2 Covid-19 Business Assistance Program Purpose/Background: Purpose: To consider adoption of City of Ramsey Small Business Relief Grant Program policy and to authorize staff to implement the program. Background: The City of Ramsey has been providing assistance to its businesses throughout this COVID- 19 pandemic. City staff has be communicating state, federal and other grant/loan opportunities to our businesses and assisting them with the application process when possible. Federal programs such as the Paycheck Protection Plan (PPP) and Economic Injury Disaster Loan (EIDL) have been utilized by many businesses but funds have dried up in certain areas. In an effort to get more relief for businesses and government, the federal government passed the CARES Act which allocated money directly to the State of Minnesota to assist with unexpected costs relating to COVID-19. A portion of this funds are being administered by the State of Minnesota and the state rolled out a $10,000 Small Business Relief Grant program with an application deadline of July 2, 2020. The total amount allocated in this program was $60M. Criteria for that program is attached to this case as reference only. Anoka County also received an allocation of CARES Act Funds and are also creating a grant program similar to other city and county partners. Anoka County is still putting together its application and criteria for the program and the attached draft policy will be reviewed by the Anoka County Board on July 28, 2020. The County will also be developing a procedure that outlines in detail how the grant selection/processing will be made. Discussions with County Staff indicate that they will not allow a City and County Cares act grant to be awarded to the same business. This does not seem to apply for State Cares Act grants due to the tuning and notification of grantees by the state. The goal of the City program is to get the grant money out quickly to the businesses in Ramsey that need it and have it simple to administrate, Notification: N/A Observations/Alternatives: Staff has reviewed several peer community and county policies/criteria and reviewed options with the EDA on July 16, 2020. The draft minutes outlining that discussion are included as an attachment to this case. The general outcomes of the discussion focused on getting the money out quickly, increasing the eligibility of more small Ramsey businesses for the grants, and to assure that these companies can demonstrate the need for these funds. In order to have a successful grant/loan program the city will need to put in place something that has meaningful impact to businesses, is easy to apply for, and has criteria that allows for quick processing of the application and administration of the grants. To be eligible to receive Small Business Emergency Assistance funds, a business must demonstrate that its operations have been directly and adversely affected by the COVID-19 Health Pandemic.