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HomeMy WebLinkAbout5528 RESOLUTION NO. 5528 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON, AUTHORIZING THE MAYOR TO UTILIZE A PORTION OF THE CITY'S ALLOCATION OF CARES ACT FUNDING FOR SMALL BUSINESS ASSISTANCE GRANTS WHEREAS, on March 27, 2020 the U. S. Congress passed the Coronavirus Aid, Relief, and Economic Security Act (H.R. 748), also known as the CARES Act; and WHEREAS, the City of Auburn was allocated $2.4 million to cover various eligible costs incurred as a result of coronavirus; and WHEREAS, providing assistance to businesses that have been impacted by the coronavirus is considered an eligible expenditure of CARES Act dollars; and WHEREAS, the City desires to use a portion of its CARES Act allocation to distribute Small Business Assistance Grants. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON, RESOLVES as follows: Section 1. The Mayor is authorized to distribute a portion of the City's allocation of CARES Act dollars for the distribution of Small Business Assistance Grants, which funding is generally described as follows: CARES Funding — General Description On March 27, 2020 the U.S. Congress passed the Coronavirus Aid, Relief, and Economic Security Act (H.R. 748), also known as the CARES Act. Approximately $2.4 million was allocated to the City of Auburn to cover various eligible costs that were incurred as a result of coronavirus. The City cannot use funds to supplant lost revenue. One eligible manner to use the CARES funding is to provide assistance to businesses that have been impacted by the coronavirus. Resolution No. 5528 June 8, 2020 Page 1 of 3 Rev. 2018 Section 2. The grant funds will be distributed in equal amounts to all businesses that essentially meet the following below described criteria designed to deliver funds to those businesses hardest hit by the impact of the Corona virus. Proposed Program Overview Dedicate$650,000.00 for the purposes of aiding small businesses that have been hardest hit by the impact of coronavirus. Establish criteria that defines the types of businesses that would be eligible to receive grant funds that do not have to be paid back to the City. Split $600,000.00 equally amongst all businesses that meet the criteria. Hold $50,000.00 back in order to provide the same assistance to a business that meets the criteria but was not included in the database query that yielded the list (e.g. a business that was inadvertently left off). Depending upon the final filtering of the criteria there will be between 300 and 500 businesses that will receive a one-time grant allocation (between $2,000.00 and $1,200.00). Example criteria include the following factors that were applied to our business license database: • 5 or fewer employees • Targeting businesses that were forced to close (hair stylists, nail salons, etc.) • Located in Auburn • Removed rental licenses • Removed non-profit organizations • Removed unmanned businesses (e.g. redbox) • Removed national chain brands Process for Distributing Funds Once the database query is complete each business will receive a notice from the City of Auburn making them aware of the program and our belief that they are eligible for this financial distribution. Resolution No. 5528 June 8, 2020 Page 2 of 3 Rev.2018 Business owners will be directed to a web portal where they are able to confirm that they meet the eligibility criteria and provide an IRS W-9 form. Once the owner has submitted this information an email will be directed to Economic Development who will double check that the owner answered the questions properly and provided the W-9. If approved, Economic Development will notify Finance that the business qualifies for the distribution and Finance will produce a check that will be provided to the business. Section 3. That the Mayor is authorized to implement such other administrative procedures as may be necessary to carry out this legislation. Section 4. That this Resolution shall take effect and be in full force upon passage and signatures hereon. Dated and Signed this 15th day of June, 2020. CITY OF AUBURN If:CY CKUS, AYOR ATTEST: APPROVED AS TO FORM: ()-(17A' Shawn Campbell, MMC, ity Clerk a Comeau, City Attorney Resolution No. 5528 June 8, 2020 Page 3 of 3 Rev.2018 CITY OF AUBURN Memorandum WASHINGTON To: City Council Members From: Dana Hinman, Administration CC: Mayor Nancy Backus Date: June 2, 2020 Re: Overview of Proposed CARES Small Business Assistance Program CARES Funding —General Description On March 27, 2020 the U.S. Congress passed the Coronavirus Aid, Relief, and Economic Security Act (H.R. 748), also known as the CARES Act. Approximately $2.4 million was allocated to the City of Auburn to cover various eligible costs that were incurred as a result of coronavirus. The City cannot use funds to supplant lost revenue. One eligible manner to use the CARES funding is to provide assistance to businesses that have been impacted by the coronavirus. Proposed Program Overview Dedicate $650,000 for the purposes of aiding small businesses that have been hardest hit by the impact of coronavirus. Establish criteria that defines the types of businesses that would be eligible to receive grant funds that do not have to be paid back to the City. Split $600,000 equally amongst all businesses that meet the criteria. Hold $50,000 back in order to provide the same assistance to a business that meets the criteria but was not included in the database query that yielded the list (e.g. a business that was inadvertently left off). Depending upon the final filtering of the criteria there will be between 300 and 500 businesses that will receive a one-time grant allocation (between $2,000 and $1,200). Example criteria include the following factors that were applied to our business license database: • 5 or fewer employees • Targeting businesses that were forced to close (hair stylists, nail salons, etc.) • Located in Auburn • Removed rental licenses • Removed non-profit organizations • Removed unmanned businesses (e.g. redbox) • Removed national chain brands Process for Distributing Funds Once the database query is complete each business will receive a notice from the City of Auburn making them aware of the program and our belief that they are eligible for this financial distribution. Business owners will be directed to a web portal where they are able to confirm that they meet the eligibility criteria and provide an IRS W-9 form. Once the owner has submitted this information an email will be directed to Economic Development who will double check that the owner answered the questions properly and provided the W-9. If approved, Economic Development will notify Finance that the business qualifies for the distribution and Finance will produce a check that will be provided to the business.