Agenda - Council - 10/13/2020 - Laserfiche WebLink

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CC Regular Session Meeting Date: 10/13/2020 Submitted For: Sean Sullivan, Community Development By: Sean Sullivan, Community Development Information 7.3. Title Adopt Resolution #20-231 Approving Small Business Relief Grants and Modification of CARES Act Allocation and Program Criteria Purpose/Background: Purpose: Consider Approving Small Business Relief Grants and Modification of CARES Act Allocation and Program Criteria. Background: The City of Ramsey has been both proactive and reactive to helping our businesses during the Covid-19 pandemic. City staff and officials have served as conduits of information to assist businesses and to direct them to State and Federal business assistance programs (i.e. PPP Loans, EIDL, and other State programs) In addition the City has implemented locally based assistance in the form of the Covid-19 Resource Page, Ad Reimbursement Program, Liquor License Renewal Program and the City and County Grant Programs. All of these resources working together are helping provide the support our businesses need. Our Current Program The City has allocated $330,000 for a $10,000 City of Ramsey Small Business Relief Grant Program. This allocation could fund all eligible applicants including those who have applied to both the Anoka and Ramsey Grant Programs (see next section). This program was designed to Meet CARES Act Rules and Regulations, provide underwriting for submitted applications (proof of financial impact, in good standing and entity verification) to ensure that the City is protected in the case of Audit, and to get money out to businesses in a timely manner. CMDC is in the process of underwriting pre-screened applications and the status of those applications is included on the Grant Summary attachment. It should be noted that businesses have been taking longer than expected to provide the financial information needed to complete the underwriting. Changes to County Program and Possible City Grant Policy Changes During the application screening process the City was made aware of a change that Anoka County made to is application process. Anoka County was under -subscribed to its grant program and wanted to make it more flexible and solicit more applicants and get more CARES Act money out to businesses. One of the changes included removing the prohibition to receive multiple grants from both the City and the County. As of October 6, 2020 their were five qualifying businesses that had applied for both the Anoka County Grant and City of Ramsey Grants. They all have passed prescreening and are currently in underwriting. A decision will need to be made on whether or not the Council should amend the City grant criteria to allow for companies that have qualifying expenditures can receive multiple grants from the City and County as long as the pass underwriting. These five business are included on the Grant Summary attachment and are marked Dual Award. If the Council chooses to modify the City grant policy to allow from grants from the City and County staff recommends that the City Council open up a small application window for eligible Ramsey businesses that applied for the Anoka County Grant but did not apply for the City grant. The rationale is that they may not have applied for the Ramsey Grant thinking it was an either or grant opportunity. The City has cross-referenced the City and County grant applicants and there are eight businesses that could potentially apply for the City program. These eight businesses are included on the Grant Summary attachment.