Cathedral City Page 1 of 3 Printed on 9/22/2022
Staff Report
City Council
Item No. 3.B
Meeting Date: September 28, 2022
From: Stone James, Economic Development Director
Title: COVID-19 CDBG Small Business Grant Assistance Program Recap
RECOMMENDATION:
This item is presented for information and discussion only.
BACKGROUND:
In response to the COVID -19 pandemic, Congress signed into law the Coronavirus Aid, Relief, and Economic Security (CARES) Act. As an active participant in the CBDG program, the City was awarded just over $500,000 of CARES Act funding to help mitigate the impacts of the COVID-19 coronavirus.
In Fall 2020, Council took a portion of the CARES Act funding and directed Staff to implement a Cathedral City Small Businesses Grant program (“Program”) . Council’s goal was to h elp Cathedral City -based small businesses survive the tremendous economic hardships caused by COVID-19.
This evening’s presentation will briefly review the thirteen businesses which benefited from this program.
DISCUSSION:
When the Cathedral City Small Busin ess Assistance Program was launched and promoted, just over 100 business started an online application. Less than 20 businesses completed most of the required steps . Of those 20 businesses who submitted a partially complete application, 13 businesses met program funding criteria.
All thirteen business have expressed gratitude for having received t he funds.
Microenterprise grant recipients used the funds to help avoid eviction, prevent utilities from being turned off, and pay employees. The Small Business Improvement Loan recipients are using the funds to build outdoor patios and purchase equipment needed to operate outdoors.
Barrel District owner Adelle Acala wrote,
Cathedral City Page 2 of 3 Printed on 9/22/2022
“Dear City Council - I am writing in appreciation of your support though your Small Busi ness Assistance Program grant, we are honored and extremely grateful for your support in helping our business succeed. Thanks to your generous support this grant has made it possible for our restaurant patrons to be able to enjoy meals outdoors comfortably , with the additional seating we have also been able to retain 2 employee positions and they thank you as well . We also have received numerous complements from our customers and how much it has changed the outside appearance for the better. We are in the process of doing more upgrades and we will keep you posted. I would like to give a special thank you to Stone James and Terry Applegate for your long and late hours of relentlessly working to make this grant possible and your constant communication of kee ping me informed. We can’t thank you enough and I hope you come visit us when our project is completed.”
The 13 businesses who received either a $7,500 microenterprise grant or a Small Business Improvement Loan (up to $20,000) were:
Microenterprise grant recipients:
1) Grooming with Love
2) Little Dog Supercuts
3) Stellar News Network
4) Bart Lounge
5) Andrew’s Family Care
6) Fit Fix gym
7) New Fortune Restaurant
8) Daniel’s Table
Small Business Improvement Loan Recipients and how funds are/will be used:
9) Bubba’s Bones and Br ews: Substantial improvements will be made to the existing patio to shield patrons from direct sun and strong winds. These improvements will commence upon receipt of necessary City permits.
10) Barrel District : Used funds to build a well -appointed outdoor pat io. Patio has already been heavily used despite it being in the high-heat summer months.
11) Runway Restaurant : Is using the funds to invest in outdoor tables which will accommodate umbrellas, outdoor chairs, and equipment to service customers outdoors.
12) El Portal: Used funds to build a robust outdoor patio.
13) Amp Sports Lounge : Used funds to create an outdoor space complete with tables, chairs, and big screen televisions on rolling stands.
All 13 businesses have been funded.
FISCAL IMPACT:
Cathedral City Page 3 of 3 Printed on 9/22/2022
N/A
ATTACHMENTS:
Barrel District Outdoor Patio
AMP Sports Lounge Outdoor Patio
El Portal Outdoor Patio
EL PORTAL Outdoor Patio at night