REPORT TO THE CITY COUNCIL
October 15, 2020
SUBJECT
Title
Approve First Amendment to Grant Agreement between the City of Fresno and Fresno Area Hispanic Foundation regarding small business relief to provide an additional $1,000,000 in small business grants.
Body
RECOMMENDATION
City staff is requesting Council's approval to amend and appropriate the remaining $1,000,000 CARES Act funding to our existing contract with the Fresno Area Hispanic Foundation to provide relief to small businesses affected by COVID-19.
EXECUTIVE SUMMARY
The City Council appropriated $2,000,000 by AAR on August 17, 2020. One million was to be administered by the City and $1,000,000 by Fresno Area Hispanic Foundation. The City entered into an agreement with Fresno Area Hispanic Foundation for the $1,000,000 and those funds have been disbursed. The City now wishes to expand the scope of services with the Fresno Area Hispanic Foundation to have them administer and disburse the remaining $1,000,000, which has already been appropriated by the 13th amendment to AAR.
Due to the Fresno Area Hispanic Foundation's staffing capacity and success with disbursing grant funds expeditiously to our small businesses, city staff recommends that they continue funding these businesses. This funding has already been allocated for the small business grant program. The additional $1,000,000 is going to grants; there is no additional administrative fee to this agreement.
BACKGROUND
The CARES Act (42 U.S.C. Section 801(d)) requires eligible reimbursement expenditures (1) are necessary due to the COVID-19 public health crisis; (2) are not accounted for in the City's budget as of March 27, 2020; and (3) be expended between March 1 and December 30, 2020. The Department of the Treasury understands the term 'necessary' broadly to mean the expenditure is reasonably necessary for its intended use in the reasonable judgment of the government officials responsible for spending Fund payments. (US Dept. of Tre...
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