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CONSENT CALENDAR
City of San Bernardino
Request for Council Action
Date:
To:
From:
Department:
Subject:
March 6, 2024
Honorable Mayor and City Council Members
Charles A. Montoya, City Manager;
Amanda Hernandez, Economic Development Division Manager Economic Development
Round Two American Rescue Plan Act-Funded Small
Business Grant Program (All Wards)
Recommendation:
It is recommended that the Mayor and City Council of the City of San Bernardino, California approve the remaining $425,000 for small business grants of $2,500 and $5,000.
Executive Summary
This is the second round of funding for
the American Rescue Plan Act-Funded Small
Business Grant Program allocating $425,000 towards grants ranging from $2,500 to $5,000.
Background
The City of San Bernardino was awarded $77 million under the American Rescue Plan Act (ARPA). The City
received $38.5 million in May 2021, with the remainder of the funds to be received in 2022. Treasury issued the final ARPA guidance for the use of the funds on January 6, 2022, providing clarification on allowable investments, but generally not expanding the list of eligible projects and programs. The City is working within the guidance, focusing on investments in Qualified Census Tracts (QCTs) and other priority investments.
Within the allowable investments includes assistance for small businesses that can demonstrate a negative impact from COVID-19. In February 2022, Council requested that staff evaluate a small business/non-profit grant program. At the February 2, 2022, Council Meeting, Council unanimously approved Resolution No. 2022-26 allocating $3,000,000 for grant program funding.
Providing assistance to small businesses that can demonstrate a negative impact from the COVID-19 pandemic is specifically allowed under the ARPA Treasury guidelines and is a priority of Council. The guidelines provide foundational criteria for such a
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program, which can be viewed in Attachment 2 or Agenda Item 8727 from Council meeting February 2, 2022. Council may develop a more restrictive, but not less restrictive, definition for the program.
In 2022, City staff received and took Council’s direction to develop a Round One small business and non-profit grant assistance program for San Bernardino based organizations. In collaboration with the Inland Empire Small Business Development Center (SBDC), staff crafted a framework for grant assistance to businesses and organizations that were negatively impacted by COVID-19 or are qualified as an “underserved small business group.” In order to promote the greatest small business and non-profit support, the program required applicants to participate in business training offered by SBDC.
As part of the first round of funding, the City of San Bernardino awarded $2,575,000 in grants to 105 local small businesses and non-profits as part of a grant program to support organizations impacted by the pandemic. Individual grant amounts ranged from $10,000 to as much as $35,000, per Council’s February 2, 2022, direction. A total of 87 local small businesses and 18 non-profit organizations received grants.
Discussion
Small Business Grant Assistance
There is $425,000 remaining to be awarded in this second-round program. The second round of funding will
provide grants at a lower award amount in order to capture the small businesses that were not eligible or did not receive funding in the first round of funding. With the Council’s July 19, 2023, direction, staff created guidelines that capture small businesses that make less than the $50,000 annual revenue required for the $10,000 base level of funding in the first round. The goal with the second round of the program is to provide an opportunity for funding to the businesses that were either not eligible or unable to receive a grant in the first round.
Award Amount
For Profit Small Business - $2,500 - $5,000
ELIGIBLE BUSINESS GROSS REVENUE
(2019, 2020, 2021, or 2022 taxable year)
GRANT AWARD AVAILABLE PER
BUSINESS
Annual gross revenue under $50,000 $2,500
Annual gross revenue equal or greater
than $50,000 up to $2,500,000
$5,000
Eligibility
All eligible businesses are invited to apply. Businesses which have previously received alternative sources of funding such as the Economic Injury Disaster Loan (EIDL), Paycheck Protection Program (PPP) Loan, State, or County of San Bernardino grants are eligible to apply. An applicant is ineligible for funding if they received funding in the 1 7
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City first-round ARPA-funded grant program, or if the business will receive or received funding the City’s future ARPA-funded facade improvement program. An eligible business shall receive only one source of funding from the available City ARPA-funded small business assistance grant programs.
The program is based on the availability of funds, program guidelines and submission of all required information and supporting documentation. Small businesses, including home-based businesses, with a maximum of five hundred (500) employees (full and part-time) may be eligible to receive a working capital grant after attending one (1) mandatory, free, one-on-one consulting session. Additionally, the grant may be used for working capital to cover the day-to-day business operating expenses such as rent/lease payments, mortgage payments, payroll and benefit costs, utility expenses, inventory, Personal Protection Equipment (PPE) or other similar expenses that occur in the ordinary course of operations.
Applications to the grant program will be made available via the Small Business Development Center's online form on Wednesday, May 1, 2024, via the City’s Economic Development website.
Marketing
Staff plans to market this opportunity to the eligible business community through various methods, including:
• Digital
o Flyers, brochures, and digital media will be shared across all digital platforms available, including Instagram, Facebook, email-newsletters, website articles, and more.
• Physical
o Staff will connect with business resource groups at in-person meetings to share the opportunity and how to apply to the program. Staff will also advertise the opportunity with door-to-door outreach in key commercial nodes.
• Mail
o Staff will collaborate with Water Department billing to use mail efforts to notify businesses of the opportunity and provide resource information. 2021-2025 Strategic Targets and Goals
The use of the American Rescue Plan Funds as outlined
aligns with Key Target No.
3. Improved
Quality of Life by investing in projects and services that positively impact health, access to shelter and services, and improve the outdoor and built environment in the San Bernardin o community; and Key Target N o. 4. Econ omic Growth and Development by investing in economic development of local San Bernardino-based businesses.
Fiscal Impact
There is no General Fund fiscal impact associated with the use of American Rescue Plan funds.
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Conclusion
It is recommended that the Mayor and City Council of the City of San Bernardino, California approve the remaining $425,000 for small business grants of $2,500 and $5,000.
Attachments
Attachment 1 City of San Bernardino Round Two Small Business Grant Guidelines
Attachment 2 US Treasury ARPA Guidelines
Attachment 3 Round Two City of San Bernardino Small Business Grant PowerPoint Presentation
Ward:
All Wards
Synopsis of Previous Council Actions:
August 4, 2021 Mayor and City Council received a report and discussed the allocation of American Rescue Plan funds.
October 20, 2021 Mayor and Council committed American Rescue Plan funds to eligible projects and programs, and amended the 2021/22 Budget by $8,160,000. Resolution 2021-247
February 2, 2022 Mayor and Council committed American Rescue Plan funds to eligible projects and programs. Resolution 2022-26.
September 21, 2022 Mayor and Council approved Round One Small Business and Non-Profit Training & Grant Program Guidelines