Adopt Resolution #20-194 Approving Underwriting Service Agreement for Small Business Relief Grant Program

Purpose: To consider adoption of Resolution #20-194 Approving Underwriting Service Agreement for Small Business Relief Grant Program 

Background:  On July 28, 2020, The City of Ramsey approved a $215,000 Cares Act Fund allocation to create and administer the City of Ramsey Small Business Relief Grant program.  $200,000 was dedicated to grants and $15,000 was committed to have staff work with a Third Party Vendor to administer the underwriting component of the program and to develop a grant agreement template.  The use of a Third Party allows the required financial information from the applicant to remain private and it also serves as an objective way to evaluate the impact of COVID-19 on each business. 

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Observations:  The City of Ramsey opened the application window for the Small Business Grant Program on August 24, 2020 and it remains open until September 6th.(14 days)  As of August 31st, 26 applications had been received through the online portal created by City Staff. Once the application window closes, Staff will preliminarily screen the applications for to ensure that the applicant meets the minimum qualifications. Once the list has been narrowed to eligible applicants, a ranked, random selection will be made to determine which applications will be submitted to the Third Party for underwriting to ensure that the applicant truly has been impacted by COVID-19 and can demonstrate need.  Once 20 applicants have been confirmed, grant agreements will be drafted, executed and funds disbursed direct to the applicants. The focus is on getting the money out quickly to those applicants who need it.  

Staff has been working with Central Minnesota Development Company (CMDC) to put together an Underwriting Service Agreement for the City of Ramsey Small Business Relief Grant Program.  The fee structure in the Agreement is in line with the $15,000 allocation the City Council authorized on July 28, 2020 from the Cares Act dollars.  CMDC is an experienced vendor and is also providing underwriting for other organizations.  The City has worked with CMDC on its revolving loan program and has found their work to be thorough and accurate.  Staff was fortunate to find a qualified Third Party vendor with familiarity and capacity to process applications in a timely manner.

Alternatives:

1. Adoption of Resolution #20-194 Approving Underwriting Service Agreement for Small Business Relief Grant Program; subject to City Attorney review. (Staff Recommendation)
2. Adoption of Resolution #20-194 Approving Underwriting Service Agreement for Small Business Relief Grant Program; subject to City Attorney review. (as amended)
3. Something else

$15,000 from City of Ramsey Cares Act allocation approved on July 28, 2020.

Staff recommendation is to adopt Resolution #20-194 Approving Underwriting Service Agreement for Small Business Relief Grant Program; subject to City Attorney review.

Motion to Adopt Resolution #20-194 Approving Underwriting Service Agreement for Small Business Relief Grant Program; subject to City Attorney review.