I. RECOMMENDATION:
- Adopt Business Assistance Payment Guidelines as presented
- Economic Development - Business Assistance $210,000
II. BACKGROUND:
The State CDBG Program requires guidelines for the Business Assistance Payment Program be adopted by the City Council. Guidelines are to identify the method by which applications will be taken and processed, as well as, identify how eligibility is determined, what documents are required to determine eligibility, what forms of assistance will be provided, the limit of that assistance, fair marketing strategies and recordkeeping requirements.
III. DISCUSSION:
The Business Assistance Program guidelines identifies the following:
1. Application will be processed on a first come first served basis.
2. Efforts for nondiscrimination and inclusion.
3. Outreach and Marketing.
4. A business must meet ALL of the following criteria to be eligible to apply:
a. Must be a private, for profit business.
*Independent Contractors are not eligible for this program.
b. Business and/or any owner may not be suspended, debarred, proposed for debarment, declared ineligible, or voluntarily excluded from participation in federal transactions.
c. Businesses must have less than 15 FTE (full-time equivalent employees.)
d. The business must have a physical storefront establishment within Livingston's city limits.
e. Businesses must have a current Livingston business license or bring current as a result of assistance.
f. The business must have experienced a negative impact due to COVID-19, by certifying that the business has experienced at least a 25% reduction in revenue since March 1, 2020 and that grant proceeds will be used for allowable expenses under the Federal CDBG-CV Act guidelines Applicant business cannot have any unremedied City Code violations.
g. No national chains. National chains are defined as franchises/for-profit corporations; except in the case where the franchisee or brand has a Livingston-based owner.
h. Operating as a business since January 2020.
i. Business may NOT be delinquent in State and/or Federal licensing and filings.
5. If CDBG-CV funds are awarded to a business, the business must meet the following requirement:
a. Business will create/retain at least one full-time or full-time equivalent (40 hours/week) low or moderate-income permanent job (LMI Job) within 12 months. Moderate-income means less than or equal to 80% of the Area Median Income (AMI). See Section 4 of the application for income and details on how to meet the HUD National Objective for jobs.
b. If business is retaining LMI job(s) – business must demonstrate clear objective evidence
c. that permanent LMI job(s) would be lost without CDBG-CV assistance.
6. Loan will be forgiven over a two-year period as the business meets the required LMI job creation/retention requirement as outlined in the written agreement.
7. A maximum of $35,000 will be provided for Mortgage/Rent, Utilities (electric, gas, water, sewer, trash and broadband), Payroll and other operating expenses.
8. Applicant may not have received other assistance for the same purpose for any other source.
9. Reporting and Invoicing requirements.
IV. ALTERNATIVES:
Do not approve.
V. FISCAL IMPACT:
None |