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CARES Grant Background <br />Background <br />The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was created as a federal response to <br />the economic decline due to the COVID-19 pandemic. With this act, $150 billion were granted to State <br />Government. On July 7t", Hugo received $1.1 million from the Minnesota Department of Revenue. The <br />City can use this money for necessary expenditures incurred due to the COVID-19 public health <br />emergency. This can include providing financial assistance to local businesses. <br />At its August 3, 2020 meeting, the City Council made a motion to direct staff to have a discussion with <br />the EDA to determine if there is a need for a grant program for local businesses. The grant program <br />would be to provide relief and cover eligible expenses under the CARES Act. The Washington County <br />Small Business COVID-19 Relief Fund is currently available to provide grants to local, small businesses in <br />the County that were adversely impacted by the pandemic. The $10 million program will provide grants <br />up to $15,000 to employee -based small businesses and $7,500 for self-employed entrepreneurs. <br />Businesses have until August 24, 2020 to apply. If the City were to create a program, the application <br />period would likely be open in September, and funds awarded in October. All grant money must be <br />spent by November 15, 2020. <br />Discussion Topics for the EDA <br />• What would a grant program from the City look like? <br />• What businesses would be eligible? Le. are nonprofits included? <br />• What would be the dollar amount of grants awarded? <br />• How would businesses be notified of the program? <br />