REPORT TO THE CITY COUNCIL
FROM: RUTH F. QUINTO, CPA, Assistant City Manager/Interim Controller
BY: COURTNEY ESPINOZA, Business Manager
Finance Department, Grants Management Unit
SUBJECT
Title
Actions pertaining to American Rescue Plan Act (ARPA) funding to Community Based Organizations (CBOs)
1. Approve an agreement with Fresno Area Hispanic Foundation allocating $2,000,000 in ARPA funding to provide: $1,000,000 in micro grants to underserved and minority small business that have suffered negative economic impacts; $500,000 to small businesses that are at risk of eviction due to the COVID-19 pandemic; and $500,000 for a micro-business assistance program specific to mobile food vendors.
Body
RECOMMENDATION
Staff recommends Council approve an agreement with Fresno Area Hispanic Foundation allocating $2,000,000 in ARPA funding to provide: $1,000,000 in micro grants to underserved and minority small business that have suffered negative economic impacts; $500,000 to small businesses that are at risk of eviction due to the COVID-19 pandemic; and $500,000 for a micro-business assistance program specific to mobile food vendors.
EXECUTIVE SUMMARY
Staff recommends Council approve an agreement with Fresno Area Hispanic Foundation allocating $2,000,000 in ARPA funding to provide: $1,000,000 in micro grants to underserved and minority small business that have suffered negative economic impacts; $500,000 to small businesses that are at risk of eviction due to the COVID-19 pandemic; and $500,000 for a micro-business assistance program specific to mobile food vendors. These programs were approved in concept by Council on June 23, 2022, however additional programs will be offered by Fresno Area Hispanic Foundation are being requested for approval.
Through a formal request for proposals (RFP) process and subsequent Council approval, Fresno Area Hispanic Foundation was allocated $1,000,000 in ARPA funding for to provide micro grants to underserved and minority small businesses by Council on June 23, 2022. The current recommendation adds $1,000,000 to the Fresno Area Hispanic Foundation providing $500,000 for outreach and financial assistance to small business at risk of eviction and an additional $500,000 for a micro-business assistance program specific to mobile food vendors.
In 2021, the City of Fresno was awarded American Rescue Plan Act funding in the amount of $170,808,029. Of this funding approximately $10,000,000 was identified as a resource to provide grant funding to local Community Based Organizations (CBOs) for projects that aid in the recovery of the COVID-19 pandemic. Additionally, through the budget process, Council identified $500,000 in ARPA funding to provide financial assistance to small businesses at risk of eviction, enabling them to provide funding for rent, utilities and other costs that may lead to eviction if not paid. Council also identified $500,000 for a mobile food vendor program to offer technical assistance, business development and security measures for each vendor enrolled in the program.
BACKGROUND
In 2021, the City of Fresno was awarded American Rescue Plan Act funding in the amount of $170,808,029. Of this funding approximately $10,000,000 was identified as a resource to provide grant funding to local Community Based Organizations (CBOs) for projects that aid in the recovery of the COVID-19 pandemic.
Through a formal request for proposals 46 proposals were submitted totaling $77,779,315 through the City’s Planet Bids portal. All proposals were vetted for eligibility based on each agency’s self-identified APRA category determination and the U.S Treasury’s ARPA requirements and guidelines. Of eligible ARPA categories, priorities were identified by City Council via an anonymous survey. A review committee determined which projects were recommended for funding.
On June 23, 2022, Council approved 15 CBOs to received ARPA funding for a variety of different projects including; small business assistance, CBO recovery, food distribution, workforce development, youth programing and services, victim assistance, child care vouchers, and resident and business financial assistance. FAHF was also identified to administer the small business eviction protection and mobile food vendor programs. Information regarding each program is provided below:
Small Business Assistance - This program will provide financial assistance to under-served; minority small businesses impacted by COVID-19. Funding will be used to retain or create jobs, marketing, financial management, or import/export products. One-on-one technical assistance will be provided to each business to help with exposure, building capacity, and growing sales. Additional funding per Council’s previous direction, of $500,000 to administer the Small Business Eviction Protection Program and $500,000 for the Mobile Food Vendor program increased their allocation to $2,000,000.
Small Business Eviction Protection Program - This program will provide funding to small businesses who are at risk of commercial eviction in the City of Fresno. Funding will be disseminated to small businesses in the form of micro grants, to support businesses at risk of eviction due to the pandemic. Funding will help pay for rental and utility arrears, along with other past due expenses that may lead to eviction.
Micro-business Assistance for Mobile Food Vendors - This program will provide technical assistance and security measures for mobile food vendors in the City of Fresno. Vendors enrolled in the program will receive hands-on assistance in completing a business plan, tax and licensing forms, County Health Department permits, and other items necessary for mobile food vendors to operate. Through a partnership with Cultiva de Salud, each vendor will have a video camera installed and cloud storage to mitigate theft and violence.
ENVIRONMENTAL FINDING
By the definition provided in the California Environmental Quality Act (CEQA) Guidelines Section 15378, these recommendations do not qualify as a “project” as defined by CEQA.
LOCAL PREFERENCE
All of the organizations have been previously approved by Council.
FISCAL IMPACT
Proposals will be funded through American Rescue Plan Act funding and will not impact the general fund.
Attachments:
ARPA CBO Agreement with Fresno Area Hispanic Foundation