2020.10.19 CC Packet - Laserfiche WebLink

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