Adopt Resolution #20-220 Modifying CARES Act Small Business Grant Program to Allow for Additional Grant Awards

Purpose: To consider modification to the City of Ramsey Small Business Relief Grant Program to allow for the funding of an additional eleven $10,000 grants. 

Background:  The City of Ramsey has been providing assistance to its businesses throughout this COVID- 19 pandemic.  City staff has be communicating state, federal and other grant/loan opportunities to our businesses and assisting them with the application process when possible.  Federal programs such as the Paycheck Protection Plan (PPP) and Economic Injury Disaster Loan (EIDL) have been utilized by many businesses but funds have dried up in certain areas.  In an effort to get more relief for businesses and government, the federal government passed the CARES Act which allocated money directly to the State of Minnesota to assist with unexpected costs relating to COVID-19. 

The City approved a $215,000 Small Business Grant Program on July 28, 2020.  Staff has implemented that program and received 36 applications. 31 applicant passed preliminary eligibility screening. Of the 31 applicants the passed preliminary screening, four have also applied for the Anoka County grant program. At this time there are more eligible Ramsey applicants than money available. The City program was designed to award grants to those who have not also received Cares Acts grants from Anoka County.  This City process and policy allows for cleaner accounting and ensures that as many eligible Ramsey businesses as possible receive some of the Cares Act Grant money. The ultimate goal of the program is to get the grant money out quickly to the businesses in Ramsey that need it and have it simple to operate for the City and businesses

N/A

Staff anticipated a larger amount of applicants for the program than was received. It is possible, that based on the City and Anoka County Programs, 8 to 11 of eligible Ramsey applicants could not receive any grant funds. By allocating an additional $115,000 to this program there would be enough funds to fund all eligible applications. There is still some applicant screening and underwriting to be completed once the final number of eligible grant applicants are determined. 

Alternatives Include:

1. Adopt  Resolution  #20-220 Modifying CARES Act Small Business Grant Program to Allow for Additional Grant Awards ($115,000 in additional CARES Act funding and ability to process 31 grants)
2. Adopt Modified Version of Resolution #20-220 Modifying CARES Act Small Business Grant Program to Allow for Additional Grant Awards with a different dollar amount based on City Council discussion
3. Do not adopt Resolution #20-220 and cap program at 20 grants as originally designed.
4. Something else

An additional $115,000 from City of Ramsey Cares Act allocation. (includes $5,000 for underwriting/administration). Total Cares Act allocation for this program would be $330,000

Consistent with previous EDA discussion, Staff recommends an additional $115,000 allocation in CARES Act Funds to ensure that all eligible applicants in the City of Ramsey Small Business Relief Grant Program can be funded. Any funds that are not use will be re-allocated to eligible City Covid-19 related expenses. Motion to Adopt Resolution  #20-220 Modifying CARES Act Small Business Grant Program to Allow for Additional Grant Awards as presented.

Motion to adopt Resolution #20-220 modifying CARES Act Small Business Grant Program to allow for additional Grant Awards. ($115,000).