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Page 2 <br />Only one application per business entity is allowed to be submitted and the City reviewed <br />each applicant’s request for grant funds to determine the level of assistance that is eligible <br />to be provided. All grant funds allocated to businesses must be spent by November 15, <br />2020. All grant recipients were required to submit documentation of expenses specifying <br />how the entirety of the grant funds were allocated. <br /> <br />Eligible Uses: <br /> Funds may be used to cover operating expenses including payroll, rent/lease payments, <br />mortgage payments, private utilities, or other critical business expenses as a result of the <br />public health emergency. <br /> Expenses in response to CDC guidelines. <br /> Eligible expenses are from March 1, 2020 to November 15, 2020. <br /> Does not include expenses that have been previously reimbursed by other sources of <br />funds (County, State, and/or Federal). <br />Non-eligible Uses: <br /> Funds cannot be used to replace lost revenues. <br /> Funds may not be used to pay for taxes. <br /> Does not include expenses that have been previously reimbursed by other sources of <br />funds (County, State, and/or Federal). <br />Eligible Businesses Criteria: <br /> Must be in good standing with the City and County. <br /> Demonstrate that the business was adversely affected by Executive Orders related to <br />COVID-19 business restrictions. <br /> Demonstrate financial hardship as a result of the COVID-19 outbreak. <br /> May include businesses that have applied for/received any other COVID related federal <br />funding. However, only eligible expenses that have not been reimbursed by additional <br />programs are considered eligible for the Hugo CARES Business Grant Program. <br /> <br />Out of the 22 applications that were received, 19 meet the requirements necessary for approval. <br />Staff is still waiting to get materials from three applicants to ensure they are fully eligible for the <br />grant. Staff is also cross referencing the grants with Washington County to ensure the applicants <br />have not already been reimbursed for the requested funds. <br /> <br />There are three applications that do not meet the requirements. Of those three, one applicant is <br />not located within Hugo and is therefore ineligible to receive funds. The other two applicants that <br />do not meet the requirements are St. John’s Hospital and Newtrax, Inc. due to their annual <br />revenues. Both applicants have an annual revenue over $3.5 million. Staff would like to note that <br />while St. John’s annual revenue is significantly higher than the listed criteria, Newtrax, Inc. has <br />an annual revenue of $3.9 million. <br /> <br /> <br /> <br />