POINT ARENA CITY COUNCIL
AGENDA ITEM SUMMARY
AGENDA ITEM: VIII A
MEETING DATE: 11/15/2022
TITLE
CDBG Coronavirus Small Business Funding Update
RECOMMENDED ACTION
Receive presentation and ask questions
ANALYSIS
The California Department of Housing and Community Development announced the availability of Community Development Block Grant (CDBG) Coronavirus Round 1 funding for local assistance in June 2020. The City was allocated $56,334.
In November 2020, HCD announced CDBG Coronavirus Round 2 & 3 funds to provide financial assistance to local small businesses. This funding request is designed to complement the CDBG CV-1 funding application for financial and technical assistance to microenterprise businesses. The City was allocated $204,994.
Since that time, the City has provided two Point Arena businesses with grants of $10,000 each through Round One funding, with another two businesses currently in process.
There currently remains approximately $30,000 of available funding in Round One and another approximately $180,000 of funding in Round Two.
The deadline for expenditure of the Round One funding is December 31, 2022.
The financial assistance under the CDBG Coronavirus 2 & 3 program is designed to retain businesses and retain jobs by providing low interest forgivable loans to small businesses that retain jobs. If existing jobs are retained by the business, the loan is forgiven. The loan fund can also be used to assist new or expanding businesses. The deadline for expenditure of these funds is June 30, 2023
Neither your City Manager, nor your CDBG consultant Jeff Lucas, want to leave any money on the table that could benefit our small businesses during these challenging economic times. We want to get the money out to as many businesses in Point Arena as possible.
To be eligible, the business must have a physical business address within the city limits; have 5 or fewer employees; and have been impacted by Covid-19.
The grants and loans can be used for the operating capital; inventory, supplies, furniture, fixtures and equipment; rehabilitation of owner occupied or leased space (tenant improvements) including engineering, architectural and local permits or fees; refinancing of existing business debt; marketing. Potential lendees can also inquire about other eligible uses.
The CDBG process can be somewhat daunting due to some federal requirements. Jeff Lucas at Community Development Services and Robert Gernert of EDFC will work with an applicant through the entire process to obtain grant or loan funds.
Jeff will give a brief presentation and answer any questions.
FISCAL IMPACT
Administrative expenses covered by grant.
ATTACHMENTS
Mircroenterprise Grant Program Flyer
CITY MANAGER SIGNATURE
_________________________________
Paul Andersen, City Manager
City of Point Arena
Microenterprise Technical and Financial Assistance
Business Grant Program
Purpose The City of Point Arena offers business grants funded with Community Development Block Grants (CDBG). The purpose of these business grants is to provide flexible financing to businesses which, in turn, create or retain jobs.
Funding Source State Housing and Community Development Department (HCD) Community Development Block Grant (CDBG).
Grant Amount Up to $10,000.
Eligibility • Physical business address within the city limits • Five or fewer employees
• Impacted by CV-19
Use of Funds • Operating capital
• Inventory, supplies, furniture, fixtures and equipment (with or without installation costs)
• Rehabilitation of owner occupied or leased space (tenant improvements) including engineering, architectural and local permits or fees
• Refinancing of existing business debt
• Marketing
• Website development and servicing
• Inquire regarding other uses
Contact Jeff Lucas, Community Development Services
[email protected]
707-279-1540
707-489-4943