2020.09.08 CC Packet - Laserfiche WebLink

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CARES Funding Updated Budget Page 2 employees, and the public. Soft costs budgeted for included the reimbursement of costs for employees that were pulled away from their regular duties to respond to the pandemic and also to pay the expenses for public safety and similar employees whose work is substantially dedicated to mitigating or responding to the COVID‐19 public health emergency. The original presented CARES Funding Budget did not have Coronavirus Relief Funds allocated to be used for expenditures related to the provision of grants to small businesses because of the many sources of assistance already available to Hugo businesses. The budget also did not include monies for donations to local hospitals. Staff asked that Council provide direction if they would like to see funds allocated for small business grants and/or donations to local hospitals. At the August 3, 2020 City Council Meeting, Council made a motion to table the CARES Funding Budget Resolution and directed staff to have a discussion with the EDA and to come up with ideas for a grant program for local businesses and to determine what the need is and how the City could meet that need for local businesses, local food shelfs, other non‐ profits and hospitals and to bring a recommendation back to the Council. The EDA discussed a small business grant program at their August 18, 2020 EDA meeting. The EDA discussed what type of businesses in Hugo could apply for a proposed grant program and what application materials would need to be submitted. The EDA generally agreed that there were already resources available; however, it could reach more Hugo businesses if a local grant program was created. The EDA directed staff to create a CARES Business Grant program allocating $200,000.00 from the Coronavirus Relief Funds for local, private and non‐profit businesses, with each business being eligible for a grant up to $10,000.00. Businesses that qualify must generate under $3.5 million in annual revenue and prove that they have experienced significant loss in revenue and incurred costs due to COVID‐19 related business interruptions. For‐profit businesses must be locally owned and operated and must have a physical establishment in the City of Hugo. Non‐profit organizations must be local to Hugo and provide service within the City of Hugo. Businesses can use the CARES Business Grant funds to cover operating expenses incurred from March 1, 2020 to September 30, 2020 including payroll, rent/lease payments, mortgage payments, private utilities, other critical business expenses incurred as a result of the public health emergency, and expenses incurred in response to CDC guidelines. The CARES Business Grant program will run from September 9, 2020 through October 1, 2020. The Finance Department adjusted the soft costs in the original presented CARES Funding Budget to allocate $200,000.00 for a small business grant program. RECOMMENDATION Staff recommends that the City Council approve the CARES Funding Budget Resolution as presented. ATTACHMENTS CARES Funding Budget Resolution. CARES Business Grant Application and Grant Agreement Forms.