REPORT TO COUNCIL
SUBJECT
Title
Update on Small Business Assistance Grant Program and Approval of Related Budget Amendment [Council Pillar: Promote and Enhance Economic and Housing Development]
Report
BACKGROUND
At its April 8, 2020 meeting, the City Council approved the Small Business Assistance Grant Program (Grant Program) with an initial allocation of $500,000 in funds for the effort.
The Grant Program provides one-time grants to small businesses and non-profits with at least one but no more than 25 full-time employees who demonstrate a loss of income due to COVID-19. Grants of $10,000 are available for qualified small businesses and non-profits that have been deemed non-essential under the County of Santa Clara Public Health Department order dated March 16, 2020. Grants of $5,000 are available for qualified small businesses and non-profits that have been deemed essential under the same order.
Applicants must meet specific eligibility requirements (Attachment 1), complete the Small Business Assistance Grant Program application (Attachment 2) and demonstrate loss of income due to COVID-19 by completing the Estimated Disaster Economic Injury Worksheet (Attachment 3).
At the April 28, 2020 City Council meeting, staff presented an update on the Grant Program and City Council approved the allocation of an additional $300,000 in funding bringing the total funds for the Grant Program to $800,000.
DISCUSSION
Program Status
To date, 150 applications out of approximately 700 applications have been reviewed. A total of 110 have been approved for grant funding totaling $795,000. Attachment 4 is a list of businesses that have been approved for grant funding as of May 19, 2020. An additional application has been tentatively approved which will exhaust the remaining grant funds.
The City continues to receive applications daily, but as of the date of this report, grant funds have been exhausted. The Silicon Valley Central Chamber of Commerce recently launched a GoFundMe campaign to help raise additional funding for the Grant Program. As of the date of this report, the campaign has raised a total of $1,500.
Program Funding
At the April 28, 2020 City Council meeting, Council expressed interest in allocating additional resources to the Grant Program.
In reaction to the significant financial impacts and the food insecurity issues caused by COVID-19, the City launched the Healthy Meals Santa Clara program on March 26, 2020 to supplement the existing weekday meal programs being provided by the Santa Clara Unified School District (SCUSD) for the City’s school-aged children and the Senior Center for seniors. In partnership with Levy Premium Food Service, Spectra Management Services, California’s Great America, SCUSD, Silicon Valley Power, Mission City Community Fund and Intel, Healthy Meals Santa Clara provides weekend meals (two breakfasts and two lunches) to school-aged children and seniors, with additional delivery service for homebound seniors. As of the preparation of this report, the program has provided more than 100,000 meals to Santa Clara youth and seniors since its launch.
Staff was recently able to identify savings from the Healthy Meals Santa Clara program. Changes to the USDA reimbursement process will now enable SCUSD to procure weekend meal packages for school age children at no cost to the City. In addition, Silicon Valley Power (SVP) has been identified as a funding source for the weekend senior meals. With funding sources identified for the Healthy Meals Santa Clara program, funds previously allocated for the continued implementation of the Healthy Meals Santa Clara program are now available to be reallocated to the Small Business Assistance Grant program.
Given the demonstrated need for assistance to Santa Clara’s small business community, an additional $300,000 authorization is recommended (for a total of $1,100,000). These funds would allow for the funding of an additional 30-60 small businesses depending on the mix of essential and non-essential businesses funded.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(b)(4) in that it is a fiscal activity that does not involve any commitment to any specific project which may result in a potential significant impact on the environment.
FISCAL IMPACT
As approved by the City Council during the March 24th and April 28th meetings, a total of $800,000 has been allocated for the Small Business Assistance Program. Of this amount, $234,460 was added from the Budget Stabilization Reserve, $250,000 was allocated from savings identified in the Non-Departmental operating budget, with the remaining $315,540 funded by savings identified in the City Manager’s Office operating budget.
During the May 12th meeting, City Council approved a budget amendment, appropriating $726,500 for the Food Distribution Program. Of this amount, $106,500 was anticipated revenue from the Mission City Community Fund, while $620,000 was allocated from the City Manager’s Office and Non-Departmental operating budgets for the Food Distribution Program. With the SCUSD being able to procure weekend meal packages and having SVP as an additional funding source, it is projected that the Food Distribution Program will have approximately $300,000 in savings. It is recommended that these savings be reallocated to the City Manager’s Office for additional resources for the Small Business Assistance Program.
Budget Amendment
FY 2019/20
|
|
Current |
Increase/ (Decrease) |
Revised |
|
General Fund |
|
|
|
|
Transfers From |
|
|
|
|
Transfer from the Other City Departments Operating Grant Trust Fund |
$0 |
$300,000 |
$300,000 |
|
|
|
|
|
|
Expenditures |
|
|
|
|
City Manager’s Office - Materials/Services/Supplies |
$3,064,511 |
$300,000 |
$3,364,511 |
|
|
|
|
|
|
Other City Departments Operating Grant Trust Fund |
|
|
|
|
Expenditures |
|
|
|
|
Food Distribution Program |
$726,500 |
($300,000) |
$426,500 |
|
|
|
|
|
|
Transfers To |
|
|
|
|
Transfer to the General Fund - City Manager’s Office |
$0 |
$300,000 |
$300,000 |
COORDINATION
This report has been coordinated with the City Manager’s Office and Finance Department.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email clerk@santaclaraca.gov.
RECOMMENDATION
Recommendation
1. Note and file the Update on Small Business Assistance Grant Program.
2. Approve the related FY 2019/20 Budget Amendments, decreasing the Food Distribution Program by $300,000 in the Other City Departments Operating Grant Trust Fund and augmenting the City Manager’s Office operating budget by $300,000 for a total Small Business Assistance Grant Program cost of $1,100,000 in the General Fund.
Staff
Reviewed by: Ruth Mizobe Shikada, Assistant City Manager
Approved by: Deanna J. Santana, City Manager
ATTACHMENTS
1. Final Program Overview & Eligibility
2. Final Application
3. Final Estimated Disaster Economic Worksheet
4. List of Grant Approvals as of May 19, 2020