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HomeMy WebLinkAbout2020-10-13 - AGENDA REPORTS - 2020 SC SMALL BUSINESS COVID RELIEF GRANT PGM (2)O Agenda Item: 9 P CITY OF SANTA CLARITA AGENDA REPORT CONSENT CALENDAR CITY MANAGER APPROVAL:1 DATE: October 13, 2020 SUBJECT: APPROVAL OF THE 2020 SANTA CLARITA SMALL BUSINESS COVID RELIEF GRANT PROGRAM DEPARTMENT: Community Development PRESENTER: Jason Crawford RECOMMENDED ACTION City Council: 1. Approve the 2020 Santa Clarita Small Business COVID Relief Grant Program to provide up to $500,000 total to eligible small businesses, with individual awards not to exceed $5,000 per eligible business. 2. Direct staff to execute the 2020 Santa Clarita Small Business COVID Relief Grant Program and initiate the application process. 3. Increase Revenue Account 229-4424.015, CARES Act Grants, by $500,000. 4. Appropriate $500,000 to Expenditure Account E0211229-5161.001. BACKGROUND On March 13, 2020, the City of Santa Clarita (City) issued a local emergency declaration in response to the Coronavirus pandemic. Immediately following the emergency declaration, the City, in cooperation with the State of California mandates and Los Angeles County Department of Public Health orders, announced the suspension of all non -essential business and mass gatherings to stop further spread of COVID-19. The sweeping measures and forced disruption have profoundly affected the Santa Clarita business community. On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security (CARES) Act was signed into law. The CARES Act established the $150 billion Coronavirus Relief Fund to provide payments to state, local, and Tribal governments navigating the impact of COVID-19. Due to the significant impacts of COVID-19 to the Santa Clarita community, the City was awarded $2,740,224 under the CARES Act from the Coronavirus Relief Fund from the State of Page 1 Packet Pg. 111 O California. The City remains committed to supporting small local businesses. In response to the urgent needs of Santa Clarita's business community in light of the global pandemic, the 2020 Santa Clarita Small Business COVID Relief Grant Program is proposed. The City has a history of business -friendly policies, having been named Most Business -Friendly City in Los Angeles County by the Los Angeles Economic Development Corporation multiple times. The City Council implemented a program during the Great Recession, known as the 21- Point Plan for Progress, that helped local businesses weather the storm of the recession and be well positioned for a strong recovery. The following is a summary of the proposed 2020 Santa Clarita Small Business COVID Relief Grant Program: Small businesses (fewer than 100 employees) within the City will be eligible to be reimbursed up to $5,000. To obtain reimbursement, expenses must be related to business interruption due to COVID-19. This may include: o Personal protective equipment, such as masks, gloves, face shields, disposable gowns, and shoe covers o Cleaning and sanitizing products o Equipment related to remote working and distance learning o Health screening services, such as temperature assessment and symptom screening o Physical space modification to allow for social distancing indoors and to expand activities outdoors to continue business operations safely, according to current health order guidelines o Adaptive business services, which allow a business to remain open while health order restrictions are in place. These include disinfecting services to provide increased sanitation and alternative disinfection procedures, such as ultrasonic waves, high -intensity UV radiation, and LED blue light methods. Expenses must have been incurred between March 1, 2020, and December 30, 2020, with receipts provided to the City prior to reimbursement. The City will accept applications for these grants from October 14 to October 28. A lottery system will be used to select grant recipients from the eligible businesses that have applied. Following the selection of grant recipients, funding distribution to eligible businesses will be completed by December 30, 2020. Additionally, the Santa Clarita Valley Economic Development Corporation (SCVEDC) agreed to partner with the City on this program to provide one-time financial reimbursements to eligible businesses located throughout the Santa Clarita Valley, both within the City of Santa Clarita and within the unincorporated areas, utilizing the same criteria as above. ALTERNATIVE ACTION Other action as directed by City Council. Page 2 Packet Pg. 112 O FISCAL IMPACT 2020 Santa Clarita Small Business COVID Relief Grant Program funding will utilize CARES Act funding to reimburse up to $500,000 total to local small businesses within the City of Santa Clarita. The SCVEDC will provide additional funding to partner with the City on this program to reimburse businesses located throughout the Santa Clarita Valley, both within the City of Santa Clarita and within the unincorporated areas, There will be no impact to the General Fund. Page 3 Packet Pg. 113