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Recommendation to Receive an Update on the $600,000 COVID-19 Small Business Relief Grant Program to Help Mitigate Barriers to Capital for the Most Vulnerable Alameda Small Businesses and Restaurants; and Provide Direction to Staff Regarding Additional Funding or Other Program Modifications. (Community Development)
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To: Honorable Mayor and Members of the City Council
EXECUTIVE SUMMARY
On April 21, 2020, the Alameda City Council approved a $600,000 COVID-19 Small Business Relief Grant Program. The emergency program will fund approximately 80 one-time grants of up to $7,500 and provide immediate financial help to local small businesses impacted by the COVID-19 pandemic. The grant program launched on Monday, April 26, 2020, and will accept applications for ten days, through May 6, 2020. City Council directed staff to return at its May 5, 2020 meeting to provide an update on the grant program. At that meeting, City Council may provide direction to staff regarding additional funding or other program modifications.
BACKGROUND
The goal of the COVID-19 grant program is to mitigate barriers to capital for the most vulnerable Alameda small businesses by providing one-time emergency working capital grants. Businesses can receive a one-time grant of up to $7,500. The total amount available for small business relief grants will be $600,000 (80 grants). A total of $502,500 in grant funds (67 grants) will be available for award to qualified businesses in all areas of Alameda, excluding Alameda Point. A total of $97,500 (13 grants) will be available for award to qualified businesses at Alameda Point due to the funding coming from restricted funds only available for programs at Alameda Point through Base Reuse funding. Applications will be accepted for a ten-day period. Each completed application received will be reviewed and evaluated based on the established eligibility criteria. Awards will be announced no later than two weeks after the application close date and funds will be disbursed within 30 days of the award date.
Following City Council’s approval of the program on April 21, 2020, staff launched the program on Monday, April 27, 2020. Staff will provide an update on the program to-date at the City Council’s May 5, 2020 meeting.
DISCUSSION
As noted above, staff launched the grant project on Monday, April 27, 2020. Applications will be accepted for a 10-day period. Following the application period, staff will complete its review of the applications received and determine program eligibility. Up to eighty businesses will receive a $7,500 grant for working capital based on the $600,000 grant fund amount.
When the City Council approved the grant program, it expressed concern that the demand, and need, would far outstrip the funds available. Therefore, it requested that staff return on May 5, 2020, to provide an update on the program. At that time, staff will be able to report on the number of applications received to-date, the types of businesses who have applied, where businesses are located, etc., but will not be able to report on final information as applications will still be accepted through May 7, 2020. Also, the business-by-business analysis regarding confirmation of a substantial loss of revenue due to the COVID-19 pandemic will not have been concluded. In addition to the staff update on the program, City Council may decide to provide additional direction to staff regarding the program.
In addition to approving the grant program, City Council also directed staff to create a special public-private partnership-soliciting donations from local residents, private entities, and foundations to supplement the Small Business Relief Grant Program. Other Bay Area cities, such as Berkeley and San Francisco, have created similar fundraising mechanisms as a way for the community to support each other during this time of need. Staff has begun developing such a program for City Council’s consideration and will present its recommendations at City Council’s May 19 meeting.
ALTERNATIVES
• Staff recommends that City Council receive an update on the Small Business Grant Relief Program and provide further direction on the program, if any.
• City Council could direct staff to identify additional resources for the Small Business Grant Relief Program.
• City Council could decide not to provide additional funding at this time and consider additional funding as part of the supplemental funding program described above.
FINANCIAL IMPACT
The City Council approved a contribution of $250,000 from the General Fund when they approved the Grant Program on April 21, 2020. There is no additional financial impact on the General Fund as part of this update on the Small Business Relief Grant Program. Any City Council direction to provide additional funding would be analyzed at the time final action is taken.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
The grant relief program is consistent with the urgency ordinance declaring the local emergency. The Alameda Municipal Code (AMC) Chapter 2-24.2 defines a local emergency as “the actual or threatened existence of conditions of disaster or of extreme peril to the safety of persons and property within this jurisdiction… requiring the combined forces of other political subdivisions to combat.”
ENVIRONMENTAL REVIEW
The COVID-19 Small Business Relief Grant program is exempt from review under the California Environmental Quality Act Section 153 (not a project); and Section 15061(b)(3) (no significant environmental impact).
CLIMATE IMPACTS
The Small Business Relief Grant Program does not generate adverse climate impacts.
RECOMMENDATION
Receive an update on the $600,000 COVID-19 Small Business Relief Grant Program to help mitigate barriers to capital for the most vulnerable Alameda small businesses and restaurants and provide direction to staff regarding additional funding or other program modifications.
CITY MANAGER RECOMMENDATION
The City Manager recommends that City Council accept information on the number of grants applied for. If the grant program appears to be close to completely subscribed to, the City Manager recommends Council consider directing staff to come back with further options with benefits and impacts for first meeting in June due to the COVID 19 Shelter in Place potentially being extended through the end of May.
Respectfully submitted,
Debbie Potter, Community Development Director
By,
Lois Butler, Economic Development Manager
Financial Impact section reviewed,
Nancy Bronstein, Human Resources Director and Interim Finance Director
cc: Eric Levitt, City Manager