Community Development Block Grant Coronavirus Program Closeout — Point Arena City Council, July 25, 2023

POINT ARENA CITY COUNCIL

AGENDA ITEM SUMMARY
AGENDA ITEM: IX A
MEETING DATE: 7/25/2023
TITLE
Community Development Block Grant Coronavirus Program Closeout

RECOMMENDED ACTION
Conduct public hearing and approve closeout of the program

ANALYSIS
The California Department of Housing and Community Development provided the City with $56,334 in funding for business relief from the effects of the Coronavirus pandemic.

The purpose of the grant was to encourage businesses to retain existing employees and, in time, to provide capital to help create new jobs.

All funds from this program have been allocated. The purpose of this hearing is to close out the grant and provide an opportunity for the public to comment on the program.

The City was able to provide several small grants to local businesses including:
• North Coast Pacific Adventures -- $10,117
• Sign of the Whale -- $10,000
• Franny’s Cup and Saucer -- $4,000
• Hand & Spade Landscaping -- $12,500
Due to the lengthy application and several delays with HCD, funds were not actually distributed until late 2022 and early 2023. Our CDBG Consultant Jeff Lucas will be available to answer any questions.

FISCAL IMPACT
$36,617 in grants to local small businesses

ATTACHMENTS
Point Arena CDBG Coronavirus Loan Application

CITY MANAGER SIGNATURE
_________________________________
Paul Andersen, City Manager

BUSINESS GRANT/ LOAN APPLICATION

1. Applicant Name:
_________________________________________________________ Name of Business:
_________________________________________________________ Sole Proprietorship: _________ S Corporation:________
Partnership: _________ C Corporation:________
LLC/LLP: ________
Mailing Address:___________________________________________________________

Street Address: ____________________________________________________________ Business Telephone: ____________________ Email: _____________________ Home Telephone: ___________________
Cell Phone: ___________________
Fax: ___________________
Project Address:
__________________________________________________________ Federal Employer Identification Number:
________________________________________
Assessor's Parcel Number for Business and/or Project Site: ______________________ (Needed for ALL businesses no matter if renting or owning) DUN # ________________________ (see instructions in application)

2. Loan Amount Requested: $ _______________
Uses of Funds:

Purchase of Real Estate $ ____________________
Purchase of Existing Business
Furniture, Fixtures & Equipment ____________________
Inventory ____________________
Advertising & Promotion ____________________
Operating Capital ____________________
Other (specify) ____________________

Construction Uses
Renovation/New Construction ____________________
Leasehold Improvements ____________________
Infrastructure (curbs, gutter, sidewalks, etc.) ____________________ TOTAL $ ____________________

3. Ownership
All owners of 20% or more of the applicant business are listed below:

Name ______________________________
Home Address ______________________________
City, State, Zip ______________________________
Phone ______________________________
Social Security # ______________________________
% of Ownership ______________________________
U.S. Citizen Yes ______ No______

For corporations, please list corporate officers, titles and who will be signing loan documents.

Name Corporate Title Signing Loan Documents
(Yes or No)
(If additional space is needed, please use reverse side of this page.)

4. Have any of the persons listed above ever been charged with, or convicted of any criminal offenses, other than a minor motor vehicle violation?
Yes No
If yes, please explain:
__________________________________________________________________________ __________________________________________________________________________

5. Has the applicant or any person listed above been in receivership or filed bankruptcy? Yes No
If yes, please explain:
__________________________________________________________________________ __________________________________________________________________________

6. Has the applicant or any person listed above had any credit problems in the last 5 years? Yes No
If yes, please explain:
__________________________________________________________________________ __________________________________________________________________________

7. Number of Employees
Current: Full Time ____________ Part Time __________
Proposed New Jobs (if any): Full Time ____________ Part Time __________ Jobs to be Retained or Created (Jobs depicted on this form must be reflected on Income and Expense Projections (Attachment D)
Position / Title
Hourly
Wage
Hours Per
Week
TOTAL
8A. History of Business and Description of Use of Funds This should be a one or two-page narrative where you describe the business, its products and services, how it was acquired by you, and how long you have owned it.

Please explain what the loan funds will be used for. Discuss any significant events that have affected the business cash flow, especially how COVID-19 has impacted your business, changes in income, expenses, competitive advantages, and any other relevant information you think we should know.
________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ 8B. History of Business and Description of Use of Funds The city loan program can be used to help your business retain existing jobs and create new jobs. Please explain if the loan funds are to be used to retain existing jobs and how many jobs will be retained.

We will follow up with you to determine how we can best use the loan program to help you; job retention loans can be forgiven depending on how long you retain the jobs. The city requires that jobs be retained for a period of three months in order for the loan balance to be forgiven.
____________________________________________________________________ ____________________________________________________________________ ____________________________________________________________________ ____________________________________________________________________ ____________________________________________________________________ ____________________________________________________________________ ____________________________________________________________________ ____________________________________________________________________ ____________________________________________________________________ ____________________________________________________________________ ____________________________________________________________________ ____________________________________________________________________

9. Collateral Being Offered as Security for This Loan
(Real estate, equipment, inventory, other business assets, personal assets, etc.) A Preliminary Title Report will be requested from a local Title Company early in the application process on any real estate being considered as collateral for the loan. The Borrower is responsible for any and all fees associated with the Title Company.

Description of Collateral Market Value Purchase Cost Balance Owed (with APN)
_________________________ ______________ _______________ _______________ _________________________ ______________ _______________ _______________ _________________________ ______________ _______________ _______________ _________________________ ______________ _______________ _______________ _________________________ ______________ _______________ _______________

10. Other Lenders for this Loan
Type of Lender Name of Lender Amount Term Rate
Bank
Private
Other
Total $

PLEASE ATTACH THE FOLLOWING DOCUMENTS TO THIS APPLICATION ____ 1. All businesses must provide Resumes of Key Personnel, 2020 and year to date payroll documentation. (Attachment “A”)
____ 3. Schedule of business debt. (Attachment “B”)
____ 4. Current personal financial statements of principals. These must be dated no more than 90 days prior to the application. (Attachment “C”) ____ 5. Three (3) years of personal tax returns for the proprietor, partners, and stockholders with 20% or more ownership in the business. ____ 6. Start-up businesses must provide three (3) years of monthly income and expense projections. Existing businesses must provide two (2) years of monthly income and expense projections. Also, a detailed description of how the projections were determined is required. (Attachment “D”) ____ 7. All start-up businesses must provide a Business Plan. ____ 8. Business tax returns for the three (3) most recent years. ____ 9. Business financial statements for the applicant's three (3) most recent fiscal years, where applicable, and a current financial statement dated no more than 90 days prior to the application.
____ 10. Current Aging of Accounts Receivable and Accounts Payable. ____ 11. Copy of Business License.
____ 12. Copy of all Corporate Filings or Partnership Agreements (in the case of Corporations – copies of Corporate Resolution authorizing the borrowing request). ____ 13. Breakdown of proposed cost with written estimates from contractors or suppliers. Purchase agreements, when applicable.
____ 14. Such non-financial information or supporting information necessary to substantiate the application, including, but not limited to: estimates, quotations, receipts, contracts, orders, invoices, leases, sales agreements, documentation from architects, engineers, contractors, suppliers, or others involved in the sale, lease, or construction of fixed assets, if any, for applicant's project including schedules of implementation.

APPLICANT'S CERTIFICATION/AUTHORIZATION
I/We certify that all information in this application and all information furnished in support of this application are true and complete to the best of my/our knowledge and belief.

I/We authorize the lending agency to verify all information furnished in connection with the loan application. The information that may be verified includes, but is not limited to, the following: employment, pensions, mortgages, deposits, and any other income; personal or business loans; insurance; and further, to obtain a credit report.

I/We also authorize the lending agency to disclose any financial information on income tax returns or on my personal or business financial statements, for the purpose of obtaining a loan on my behalf. I understand the information will be made available to loan committee members and other lenders that may be involved in the funding of my loan request.

I/We also acknowledge that this is an application for public funds and, therefore, the information provided may be made available for review.

I/We acknowledge the City of Willits does not and shall not discriminate on the basis of race, color, national origin, age, disability, sex, gender identity, religion, reprisal, and where applicable, political beliefs, marital status, familial or parental status, sexual orientation, or military status, in any of its activities or lending practices. _____________________________ ___________________
Signature Date

_____________________________ __________________
Signature Date
The following information is requested by the Federal Government for certain types of loans in order to monitor the lender’s compliance with equal credit opportunity, fair housing, and to help us provide services to all eligible businesses fairly. You are not required to furnish this information, but are encouraged to do so. The law provides that a lender may not discriminate either on the basis of this information, or on whether you choose to furnish it.

If you furnish the information, please provide both ethnicity and race. For race, you may check more than one designation. If you do not furnish ethnicity, race, or sex, under Federal regulations, this lender is required to note the information on the basis of visual observation and surname if you have made this application in person. If you do not wish to furnish the information, please check the box below. (Lender must review the above material to assure that the disclosures satisfy all requirements to which the lender is subject under applicable state law for the particular type of loan applied for.)
BORROWER I do not wish to furnish this information
CO-BORROWER I do not wish to furnish this information
Borrower Circle Those That Apply:

Ethnicity: Hispanic or Latino Not Hispanic or Latino
Race: American Indian or Alaska Native Native Hawaiian or Other Pacific Islander Asian Black or African American White

Sex: Male Female
CO-Borrower Circle Those That Apply:

Ethnicity: Hispanic or Latino Not Hispanic or Latino
Race: American Indian or Alaska Native Native Hawaiian or Other Pacific Islander Asian Black or African American White
Sex: Male Female
ATTACHMENT “A”

RESUME OF
________________________________________
________________________________________
________________________________________
Note: This form is not required if another format is provided in its place.

EMPLOYMENT HISTORY (most recent first):

Dates Employed - From: ____________________________ To: _____________________ Name of Company: __________________________________________________________ Address: ___________________________________________________________________ Position and Responsibilities: __________________________________________________ ___________________________________________________________________________ Dates Employed - From: ________________________ To: __________________________ Name of Company: __________________________________________________________ Address: ___________________________________________________________________ Position and Responsibilities: __________________________________________________ ___________________________________________________________________________ EDUCATION:

Dates Enrolled: From: _______________________ To: _______________________ Name of School: _________________________________________________________ Address: _________________________________________________________ Degree Received: ________________________ Date Graduated: __________________ Dates Enrolled: From: _______________________ To: _______________________ Name of School: _________________________________________________________ Address: _________________________________________________________ Degree Received: ________________________ Date Graduated: __________________ OTHER RELATED TRAINING OR EXPERIENCE:
___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ References will be furnished upon request.

Signature: ________________________________ Date: ____________________________ ATTACHMENT “B”
BUSINESS INDEBTEDNESS: Furnish the following information on all business debts owed -- vendors, credit cards, payroll taxes, income taxes, sales tax, contracts, notes, and mortgages. (Current balances should agree with the latest balance sheet submitted.) Use reverse side or another sheet to list additional information.

To Whom Payable
Original
Amount
Original
Date
Present
Balance
Rate of
Interest
Maturity
Date
Monthly
Payment Security
Current = C
Past Due = P

AFFIDAVIT OF CURRENT TAX STATUS
I hereby certify that any and all of the applicable real property taxes, personal property taxes, Federal & State income taxes, Federal and State payroll withholding taxes, State Sales Tax, insurance premiums, and any other assessment or public charges are current. _____________________________________ ___________________________________ Business Owner / Applicant Date
OMB APPROVAL NO. 3245-0188
ATTACHMENT “C” EXPIRATION DATE:11/30/2004

PERSONAL FINANCIAL STATEMENT
U.S. SMALL BUSINESS ADMINISTRATION As of ,
Complete this form for: (1) each proprietor, or (2) each limited partner who owns 20% or more interest and each general partner, or (3) each stockholder owning 20% or more of voting stock, or (4) any person or entity providing a guaranty on the loan.

Name Business Phone
Residence Address Residence Phone
City, State, & Zip Code
Business Name of Applicant/Borrower
ASSETS (Omit
Cents) LIABILITIES
(Omit
Cents
)
Cash on hand & in Banks …………………………….. $
Accounts
Payable………………………….
$
Savings
Accounts………………………………….………………
$

Notes Payable to Banks and
Others …..
(Describe in Section 2)
$
IRA or Other Retirement Account ……………………. $

Installment Account (Auto)
……………….

Mo. Payments ___________
$
Accounts & Notes Receivable ……………………….. $

Installment Account
(Other)……………….

Mo. Payments
____________
$

Life Insurance-Cash Surrender Value Only …………
(Complete Section 8)
$

Loan on Life
Insurance…………………..
$
Stocks and Bonds
………………………………………..
(Describe in Section 3)
$

Mortgages on Real Estate
………………
(Describe in Section 4)
$
Real Estate
……………………………………………….
(Describe in Section 4)
$

Unpaid Taxes
………………………………
(Describe in Section 6)
$
Automobile-Present Value ……………………………. $

Other Liabilities
…………………………….
(Describe in Section 7)
$
Other Personal Property
………………………………..
(Describe in Section 5)
$

Total Liabilities
…………………………….
$
Other Assets …………………………………………….
(Describe in Section 5)
$

Net Worth
…………………………………
$
Total $
Total
$
Section 1. Source of Income Contingent Liabilities
Salary ……………………………………………………. $

As Endorser or Co-Maker
………………..
$
Net Investment Income
………………………………….
$ Legal Claims & Judgments
………………
$
Real Estate Income
……………………………………..
$

Provision for Federal Income Tax
……….
$
Other Income (Describe below)*
………………………
$

Other Special Debt
……………………….
$
Description of Other Income in Section 1.
*Alimony or child support payments need not be disclosed in "Other Income" unless it is desired to have such payments counted toward total income.

Section 2. Notes Payable to Banks and Others. (Use attachments if necessary. Each attachment must be identified as a part of this statement and signed.)
Name and Address of
Noteholder(s) Original Balance Current Balance
Payment
Amount
Frequency
(monthly,etc.)
How Secured
or Endorsed
Type of
Collateral
SBA Form 413 (3-00) Previous Editions Obsolete
This form was electronically produced by Elite Federal Forms, Inc.

Section 3. Stocks and Bonds. (Use attachments if necessary. Each attachment must be identified as a part of this statement and signed).

Number of Shares Name of Securities Cost Market Value
Quotation/Exchange
Date of
Quotation/
Exchange
Total Value
Section 4. Real Estate Owned. (List each parcel separately. Use attachment if necessary. Each attachment must be identified as a part of this statement and signed.) Property A Property B
Type of Property
Address
Assessor Parcel Number
(APN)
Date Purchased
Original Cost
Present Market Value
Name &
Address of Mortgage Holder
Mortgage Account Number
Mortgage Balance
Amount of Payment per
Month/Year
Status of Mortgage
Section 5. Other Personal Property and Other Assets. (Describe, and if any is pledged as security, state name and address of lien holder, amount of lien, terms of payment and if delinquent, describe delinquency)
Section 6. Unpaid Taxes. (Describe in detail, as to type, to whom payable, when due, amount, and to what property, if any, a tax lien attaches.)
Section 7. Other Liabilities. (Describe in detail.)
Section 8. Life Insurance Held. (Give face amount and cash surrender value of policies - name of insurance company and beneficiaries)
I authorize SBA/Lender to make inquiries as necessary to verify the accuracy of the statements made and to determine my creditworthiness. I certify the above and the statements contained in the attachments are true and accurate as of the stated date(s). These statements are made for the purpose of either obtaining a loan or guaranteeing a loan. I understand FALSE statements may result in forfeiture of benefits and possible prosecution by the U.S. Attorney General (Reference 18 U.S.C. 1001).

Signature: Date: Social Security Number:

PLEASE NOTE:

The estimated average burden hours for the completion of this form is 1.5 hours per response. If you have questions or comments concerning this estimate or any other aspect of this information, please contact Chief, Administrative Branch, U.S. Small Business Administration, Washington, D.C. 20416, and Clearance Officer, Paper Reduction Project (3245-0188), Office of Management and Budget, Washington, D.C. 20503. PLEASE DO NOT SEND FORMS TO OMB.

ATTACHMENT “D”

INCOME AND EXPENSE PROJECTIONS
Instructions
This is a worksheet designed to help determine monthly projected business income and expenses for a twelve-month period. This will also help assess the feasibility of a project by determining if the projected income will cover the projected expenses, including owners draw and loan payments. This is just a worksheet, so fill it out in pencil. You will be making a lot of changes to it.

MONTHS: Fill in the month you anticipate opening your business, or start with "Month #1".

TOTAL SALES: All income from the sale of products or services for the month.

COST OF GOODS SOLD: Direct cost of the products sold. (Example: for a restaurant, the cost of goods sold is the food; for a clothing store, the clothing; for the manufacturing of tables, the cost of the wood, metal, varnish.) Service businesses do not have a cost of goods sold.

GROSS PROFIT: Subtract the Cost of Goods Sold from the Total Sales to determine the Gross Profit.

OPERATING EXPENSES: Listed here are some examples of monthly expenses. You may have some additional or different expenses that are specific to your business, just write them in.

TOTAL OPERATING EXPENSES: Add up all Operating Expenses for the month.

NET PROFIT: Subtract the Total Operating Expenses from the Gross Profit.

OWNER'S DRAW: This is the money the business owner will draw from the business for personal living expenses. When there is another monthly source of income, owner's draw may not apply. If the business owner will be paying personal living expenses from the business sales, owners draw will need to be determined. There is no owners draw under a corporate legal structure; all wages should be shown in the wages and payroll line items.

AVAILABLE FOR LOAN PAYMENT: Subtract Owner's Draw from Net Profit.

LOAN PAYMENT: This is the monthly payment of principal and interest based on the amount of the loan needed. This amount can be obtained from the Financial Consultant.

MARGIN: Subtract the Loan Payment from the Available for Loan Payment.

This is the projected amount left after all expenses have been paid.

If the Loan Payment amount is larger than the Available for Loan Payment, you are losing money at the end of the month.

MONTH TOTAL
Total Sales
Less Cost of Goods
Sold
Gross Profit

OPERATING

EXPENSES
Accounting
Advertising
Auto & Vehicles
Freight/Postage
Insurance
Leases (Equipment)
Office Expenses
Rent
Repairs & Maintenance
Supplies
Taxes (Sales)
Travel and
Entertainment
Utilities/Telephone
Wages & Payroll Taxes
Other

TOTAL OPERATING

EXPENSES
Net Profit
Owner's Draw (not for
corps)
Available for Loan
Payment
Loan Payments
MARGIN

AUTHORIZATION AND RELEASE FOR CREDIT REPORT
Dear Requestor:

Prior to a credit report request, you must understand the following:
1) Access to your credit file is limited to yourself and your agents acting on your behalf.
2) Your consent in writing is required before a report may be provided. 3) You are entitled to a copy of the credit report and a copy of the FTC’s “Consumer Rights Notice”.

Based on the above information, I hereby authorize Community Development Services (CDS) to obtain my credit report for the purposes of applying for a business loan.

PLEASE PRINT THE BELOW INFORMATION NEATLY
Applicant Spouse/Partner
Name:__________________________ Name: __________________________ (Full name including Jr., Sr., etc.) (Full name including Jr., Sr., etc.) SSN#: ________________________ SSN#: __________________________ Date of Birth: _____________________ Date of Birth: ______________________ Address:_________________________ Address: _________________________ City, State, Zip: ___________________ City, State, Zip: ____________________ Previous Address: _________________ Previous Address: __________________ City, State, Zip: ___________________ City, State, Zip: ____________________ ________________________________ ________________________________ Signature Signature
STATE OF CALIFORNIA - BUSINESS, CONSUMER SERVICES AND HOUSING AGENCY GAVIN NEWSOM, Governor

DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT

DIVISION OF FEDERAL FINANCIAL ASSISTANCE
2020 W. El Camino Avenue, Suite 200
P.O. Box 952054
Sacramento, CA 95833
(916) 263-2771 / FAX (916) 263-2763
www.hcd.ca.gov

View and Save Debarments
HCD requires that applicants for federal funding upload debarment checks from Sam.gov in eCivis Grants Management Network.

The information from Sam.gov showing “no exclusions” and that registration is not expired is required for applicants and their contractors and subrecipients. , Recently, SAM.gov changed their website interface and this guide is to assist with viewing and saving the debarment information in the new interface.

To review Entity Registrations a login is required.

If a New User, follow the steps to creating an account and access SAM below:

Step 1: Go to www.sam.gov.

Step 2: Click on Sign In, Select the Green Accept box, and then “Create an Account”.

Step 3: Complete the requested information, and then click “Submit”.

Step 4: Select “Individual User Account”.

Step 5: You will receive an email confirming you have created a user account in SAM.

Go to: www.sam.gov
Select Sign In – located at the far top right of the screen:

Select the green accept box:

The accept button brings up the login screen:

Once logged in, you may get a screen as shown below to Complete Your Profile. This was already done when you created the account and is unnecessary. Just select Home as highlighted below:

This will pop up a box as shown below, choose Leave:

The Home page is shown below. Go to the Select Domain arrow down (highlighted below), which is located under the “Already know what you want to find?” Section:

Select Entity Information from the arrow down key:

You can search using the entity’s name or DUNS number. It is recommended to use the DUNS Number:

Then select the search box with the eyeglass.

Below is what is shown if there are “no exclusions”. Note the highlighted box that states, “Entity Registration”. If it states this, then there are no exclusions.

The example below is what you will copy, save as a pdf and upload to the eCivis Grants Management software as a debarment.

If there are exclusions, it will have the word “Exclusion” in the box, where Entity Registration was in the first example:

If a search comes up with no results or no matches found, then the entity is not registered with Sam.gov and needs to register using the link below:
https://sam.gov/content/entity-registration
Instructions for registering can be located at the link as follows:
https://www.fsd.gov/gsafsd_sp?id=kb_article&sys_id=11bfc64d1b1cb 8909ac5ddb6bc4bcb62
Note: HCD will not accept “no results” PDF as no exclusions debarment documentation.

Point Arena City CouncilJuly 25, 2023

Point Arena City Council
July 25, 2023