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 Treasury, Coronavirus Relief Fund Guidance (April 30, 2020) p.1.) Expenditures must be used for actions taken to respond to the public health emergency. These may include expenditures incurred to allow the government to respond directly to the emergency, such as by addressing medical or public health needs, as well as expenditures incurred to respond to second-order effects of the emergency, such as by providing economic support to those suffering from employment or business interruptions due to COVID-19 related business closures. (US Dept. of Treasury, Coronavirus Relief Fund Guidance (April 30, 2020) p. 1.)
The Fresno Area Hispanic Foundation (FAHF) has a proven track record of providing technical assistance to small business and administering microloan programs. This small business grant program will administer loans of $5,000-10,000 based on the number of employees of an applicant business. FAHF will focus on serving the diverse small business community in disadvantaged/underserved areas of Fresno. Grant funds will be disbursed by December 1 to small businesses that have not received relief funds such as Paycheck Protection Program (PPP), or a COVID relief grant from the City or County of Fresno. In addition, FAHF will conduct a digital marketing campaign to promote the program within the City. The primary target audience will be diverse small business, including but not limited to businesses in the Hispanic, Punjabi, African American, Hmong, and other minority communities that have not been able to access any relief funds.
ENVIRONMENTAL FINDINGS
[Include CEQA findings or state N/A]
LOCAL PREFERENCE
[N/A due to State and Federal money; N/A because it is more than ½ of 1%; or yes, state why]
FISCAL IMPACT
[Funding source, clarify whether General Fund is or is not impacted; appropriation authority already approved or an AAR is attached; if appropriate explain impact on other projects or timing of funding from other agencies; future obligations]
Attachment:
First Amendment to Grant Agreement between the City of Fresno and Fresno Area Hispanic Foundation.