REPORT TO ECONOMIC DEVELOPMENT, COMMUNICATIONS, AND MARKETING COMMITTEE
SUBJECT
Title
Update on the Small Business Assistance Grant Program and Discussion on Potential Allocation of $1.59 Million in CARES Act Funds
Report
BACKGROUND
At the April 8, 2020 City Council meeting, the Council approved allocating $500,000 in one-time funds to create a Small Business Assistance Grant Program (Grant Program) to provide financial assistance to non-profits and small businesses in the City of Santa Clara (City) that have been negatively impacted by the novel coronavirus (COVID-19) pandemic. A key objective of the program was a quick City response of grant funds to small businesses.
The approved 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 were made 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 were available for qualified small businesses and non-profits that have been deemed essential under the same order. Grant funds may be used for payroll expenses or lease payments.
The Grant Program began accepting applications at 10:00 a.m. on Friday, April 17, 2020. The City received more than 200 applications within the first ten minutes and has received over 800 applications to date. Staff began reviewing applications in the order they were received on Friday, April 17, 2020, and continued reviewing applications over that initial weekend. Applications were reviewed for completeness and program eligibility. As of Monday, April 20, 2020, 70 applications had been reviewed, and 33 were approved and processed for awards totaling $240,000. The remaining applications were either pending based on submission of additional information or did not meet program requirements (e.g., businesses...
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