Adopt Resolution #20-249 Approving City of Ramsey Small Business Relief Grants - CARES Act

Purpose:
Consider Approving City of Ramsey Small Business Relief Grants 

Background:
The City of Ramsey has been both proactive and reactive to helping our businesses during the Covid-19 pandemic.  City staff and officials have served as conduits of information to assist businesses and to direct them to State and Federal business assistance programs (i.e. PPP Loans, EIDL, and other State programs).  In addition the City has implemented locally based assistance in the form of the Covid-19 Resource Page,  Ad Reimbursement Program, Liquor License Renewal Program and the City and County Grant Programs.  All of these resources working together are helping provide the support our businesses need.

Our Current Program
The City has allocated up to $410,000 for a $10,000 City of Ramsey Small Business Relief Grant Program.  This allocation could fund all eligible applicants to the program. This program was designed to meet CARES Act Rules and Regulations, provide underwriting for submitted applications (proof of financial impact, in good standing and entity verification) to ensure that the City is protected in the case of Audit,  and to get money out to businesses in a timely manner.  CMDC is still in the process of completing underwriting pre-screened applications and the status of those applications is included on the Grant Summary attachment.  It should be noted that businesses have been taking longer than expected to provide the financial information needed to complete the underwriting and that some of these businesses will likely not receive underwriting approval. City Staff has been working with grant awardees to get grant agreements executed and checks distributed.

Changes to County Program and Subsequent City Grant Policy/Criteria Changes
On October, 13, 2020 City Council adopted Resolution #20-231 modifying the policy and criteria to allow for grants to be received by businesses that have applied to both the City of Ramsey and Anoka County for grants. As a result CMDC began underwriting of 6 additional applicants on 10/19/20.  The status of all applications is attached in the grant summary.

Second Round of Approvals
In an effort to close out the grant program, compete our work with CMDC for underwriting and process grant agreements before the CARES Act deadline, and Staff has presented a list of contingent and non-contingent grant approvals for Ramsey businesses. These approvals are identified on the attached grant summary.

N/A.  

Observations:

Non-Contingent Approvals
To date, the City has approved 14 grants totaling $137,473.18.  CMDC has completed satisfactory underwriting demonstrating COVID-19 impacts for nine additional Ramsey businesses. These non-contingent approvals are labeled as 10.27.20 Grant Awards - No Contingencies on the attached Grant Summary sheet.  Staff will process these grant agreement and disburse funds upon approval by the City Council.

Approvals With Contingencies
As previously mentioned, many business simply have not provided CMDC the information they need to complete the underwriting.  Both CMDC And the City are making efforts to gather the information but it has been difficult at times.  Without this information the CMDC is not able to verify that these businesses have been impacted by COVID-19.  The businesses that have not provided the necessary information have been given a deadline of 4:30PM on October 23, 2020 to provide the information needed to complete underwriting.  It should be noted that just because the information for underwriting has been provided to CMDC it doesn't guarantee approval as the financial COVID-19 impact test still must be met.  As such, Staff is presenting all businesses in this category as Approval Contingent on Satisfactory Underwriting Completion on the Grant Summary Sheet.  Staff will work with CMDC to process applications, complete grant agreements and disburse funds to those businesses that have been approved through underwriting if the Resolution #20-249 is adopted as presented.

Alternatives:

1. Adopt Resolution #20-249 Approving City of Ramsey Small Business Relief Grants - CARES Act (Recommended Option)
2. Something else

The City Council has already authorized an allocation of up to $410,000 for business grants and underwriting using the City's CARES Act allocation, if needed.  

Consistent with previous EDA recommendation, Staff recommends approval of Resolution #20-249 approving City of Ramsey Small Business Relief Grants - CARES Act. 

Motion to adopt Resolution #20-249 Approving City of Ramsey Small Business Relief Grants - CARES Act.