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Agenda Item: F.1 <br /> <br />CITY OF HUGO <br /> <br />Memorandum <br /> <br /> <br />TO: Bryan Bear, City Administrator <br /> <br />FROM: Emily Weber, Community Development Assistant <br /> <br />SUBJECT: Hugo CARES Business Grant Applications <br /> <br />DATE: October 15, 2020 for the City Council Meeting on October 19, 2020 <br /> <br /> <br />1. BACKGROUND: <br /> <br />On July 7, 2020, the City of Hugo received $1,148,713 from the Minnesota Department of <br />Revenue in response to the COVID-19 pandemic. This money was provided to the City through <br />the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) as a federal response to <br />the recent economic decline. Staff provided the City Council with a proposed CARES Budget at <br />their August 3, 2020 regularly scheduled meeting. The Council tabled the proposed budget and <br />directed the EDA and staff to discuss a grant program for local businesses. <br /> <br />The EDA met on August 18, 2020 to discuss the resources available to local businesses and if <br />there was a need for an additional grant program. The EDA motioned to direct staff to create a <br />grant program for local, private or nonprofit businesses that generate under $3.5 million in <br />annual revenue, which allowed them to apply for individual grants for up to $10,000. In <br />response, staff created a grant program that allocated $200,000 from the City’s CARES Budget <br />to local businesses should they meet the grant requirements. The City Council approved the <br />CARES Budget at their September 8, 2020 meeting and the grant application became available to <br />local Hugo businesses. The application period was open from September 9, 2020 to October 1, <br />2020. <br /> <br />Staff received 22 total applications and has been reviewing the submitted materials in regards to <br />the grant application criteria and requirements. <br /> <br />2. HUGO CARES BUSINESS GRANT PROGRAM: <br /> <br />The City of Hugo created the CARES Business Grant Program to assist eligible businesses <br />impacted by COVID-19 pandemic. The City has set aside $200,000 for the grant program <br />and businesses can apply for a one-time grant award not to exceed $10,000. Grants are on a <br />first come, first served basis. The program is subject to funding availability from the City.