HomeMy WebLinkAboutResolution 5234-05-2020 A Resolution
NO. 5234-05-2020
APPROVING THE
"PRESERVE THE FORT" BUSINESS STABILIZATION GRANT PROGRAM
AND EXECUTION OF AN AGREEMENT
WITH UNITED WAY OF TARRANT COUNTY
TO ASSIST IN MANAGEMENT OF THE PROGRAM
WHEREAS, the City of Fort Worth ("City") has received certain funding under
the Coronavirus Aid, Relief, and Economic Security Act (the "CARES Act"); and
WHEREAS, funding received by the City pursuant to Title V, Section 5001 of the
CARES Act (the Coronavirus Relief Fund) (the "Title V Funds") may be used only to
cover costs of the City that "(1) are necessary expenditures incurred due to the public
health emergency with respect to the Coronavirus Disease 2019 (COVID-19); (2) were
not accounted for in the budget most recently approved as of the date of enactment of
this section (March 27, 2020) for the State or government; and (3) were incurred during
the period that begins on March 1, 2020, and ends on December 30, 2020"; and
WHEREAS, on April 22, 2020 the United States Department of the Treasury
released written guidance for state, territorial, local, and tribal governments as to what
types of payments would be eligible for expenditure from Title V Funds (the "April 22,
2020 Circular"); and
WHEREAS, the April 22, 2020 Circular stipulates that Title V Funds may be used
for, among other things, "expenses associated with the provision of economic support in
connection with the COVID-19 public health emergency, such as: Expenditures related to
the provision of grants to small businesses to reimburse the costs of business interruption
caused by required closures; Expenditures related to a State, territorial, local or Tribal
government payroll support program; Unemployment insurance costs related to the
COVID-19 public health emergency if such costs will not be reimbursed by the federal
government pursuant to the CARES Act or otherwise"; and
WHEREAS, on May 4, 2020 the United States Department of the Treasury
released a set of Frequently Asked Questions to supplement the April 22, 2020 Circular
(the "May 4, 2020 Circular"); and
WHEREAS, the May 4, 2020 Circular stipulates that "a program (of the local
government) that is aimed at assisting small businesses with the costs of business
interruption caused by required closures should be tailored to assist those businesses in
need of such assistance"; and
WHEREAS, the May 4, 2020 Circular further stipulates that, "Fund payments may
be used for economic support in the absence of a stay-at-home order if such expenditures
are determined by the government to be necessary. This may include, for example, a
grant program to benefit small businesses that close voluntarily to promote social
distancing measures or that are affected by decreased customer demand as a result of the
COVID-19 public health emergency"; and
WHEREAS, on March 13, 2020 the Governor of Texas issued a State of Disaster
for all Texas counties and the President of the United States declared a State of National
Emergency for the United States of America due to the COVID-19 public health
emergency; and
WHEREAS, on that same day, Mayor Betsy Price ordered a Declaration of Public
Health Emergency, which has been approved, amended, and extended by the City
Council, and the Governor of Texas and numerous County Judges have issued various
Executive Orders, all of which have closed or limited operations of certain businesses
and restricted activities of the public in order to reduce the opportunity for transmission
of the COVID-19 virus; and
WHEREAS, smaller businesses in particular have suffered great economic
hardship due to closures and other impacts caused by the COVID-19 public health
emergency; and
WHEREAS, the City Council wishes to establish a business stabilization grant
program (to be called "Preserve the Fort") (the "Program") under which the City will
make certain grants to small businesses located in the City with some of the Title V
Funding, taking into account the restrictions on use of the Title V Funding and guidance
from the United States Department of the Treasury set forth in the April 22, 2020
Circular and the May 4, 2020 Circular; and
WHEREAS, due to the need for expediency in providing grant assistance to small
businesses located in the City that have incurred economic setbacks due to closures and
other impacts caused by the COVID-19 public health emergency, the City Council
approves the City's intention to enter into a contract with United Way of Tarrant County
to assist City staff in the administration and management of this business stabilization
program;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF FORT WORTH, TEXAS, THAT:
1. Taking into account the Recitals above, as well as all other available information,
the City Council hereby finds that businesses located in the City, and in particular, small
businesses, have suffered economic hardship due to closures and other impacts caused by
the COVID-19 public health emergency.
2. Taking into account the Recitals above, as well as all other available information,
the City Council hereby finds that it is necessary and appropriate to establish a business
stabilization grant program (to be called "Preserve the Fort") (the "Program") under
which the City will provide or cause to be provided grant funding from certain Title V
Funding received by the City to small businesses located in the City that have suffered
economic hardship due to closures and other impacts caused by the COVID-19 public
health emergency.
3. The City Council hereby approves the eligibility criteria and other aspects of the
Program substantially in accordance with the terms and conditions outlined in Exhibit
"A", attached hereto.
4. The City Council hereby acknowledges that, pursuant to authority granted to the
City Manager by the City Council under Section 2-9(d)(11) of the City Code, the City
will enter into a contract with United Way of Tarrant County to assist City staff in the
management and administration of the Program, on terms and conditions approved by the
City Manager and consistent with the provisions of this Resolution and finds that
payment of an administrative fee not to exceed $25,000.00 for United Way's assistance
in rapidly implementing the Program constitutes a necessary expense of Title V Funding
in responding to the COVID-19 public health emergency.
Adopted this 19th day of May 2020.
ATTEST:
V) dBy: — — — — — — -----------
Mary J. Kayser, Ci y ecretary
U`
.TEXP`�
EXHIBIT "A"
PRESERVE THE FORT
City of Fort Worth Business Stabilization Grant Program
INTRODUCTION
The City of Fort Worth has received a direct allotment of funds through the CARES Act and
desires to allocate a portion of that funding to support small businesses impacted by Covid-19.
The City plans to establish and provide for the administration of a Small Business
Stabilization Grant Program to promote local economic development by maintaining small
business operations and retaining employment within the City, pursuant to 42 U.S.C. §5305
and the Coronavirus Aid, Relief, and Economic Security (CARES)Act. The public purpose of
the Fund is to ensure continued operations of small businesses impacted by the COVID-19
Pandemic.
The Fund will be administered by the Economic Development Department through a
partnership with United Way of Tarrant County, the Fort Worth Chamber of Commerce, the
Fort Worth Metropolitan Black Chamber and the Fort Worth Hispanic Chamber to promote
and implement the grant program.
PROGRAM OVERVIEW
The proposed Grant Program would provide up to $10.0 M in funding to be provided as grants
of up to $50,000. The program will dedicate $2.5 M to minority-owned businesses and $2.5 M
to businesses located within the City's established Neighborhood Empowerment Zones (NEZ)
and Designated Investment Zones. The remaining $5.0 M allocation will be for city-wide
support. Grants will be processed until budgeted funds are exhausted.
The program provides funding for small businesses, sole proprietorships, independent
contractors and self-employed persons as well as non-profit organizations serving the business
community (excluding ineligible entities listed below).
FUNDING LEVELS
• Microenterprise business owners (less than 5 employees) will be eligible for a grant of
$5,000
• Small businesses with between 6 - 25 employees will be eligible for a grant of$7,500
• Small businesses with between 26 - 50 employees will be eligible for grants of$10,000
• Small Businesses with between 51 — 250 employees will be eligible for grants of
$50,000
ELIGIBLE ACTIVITIES
Funding under the grant program must be used to reimburse the costs of business interruption
experienced by small businesses as a result of required closures, small businesses that close
voluntarily to promote social distancing measures or small businesses that are affected by
decreased customer demand as a result of the COVID-19 public health emergency.
The types of eligible activities that could be covered under this program include: working
capital, machinery & equipment, payroll expenses, heath care benefits, contract labor, supplier
payments, rent, lease or mortgage payment (for real property used for business purposes, like
storefront or warehouse, excluding personal residence), rent, lease or purchase payment for
business property (e.g., delivery vehicle; food truck; kitchen equipment; technology, payment,
and communications systems and equipment), utility payments for business properties,
(excluding personal residence), cost of critical business operations (raw materials, marketing
expenses, etc. payments), Personal Protective Equipment (PPE) and sanitation supplies and
equipment.
BASE ELIGIBILITY
• Businesses must located in the City of Fort Worth
• Business must have been operating as of September 1, 2019
• Business must be registered to do business in the State of Texas.
• Businesses must demonstrate a reduction in sales/revenue or employment during the
period of March 17, 2020 through December 30, 2020 as a result of the COVID-19
pandemic.
PRIORITY ELIGIBILITY
• Priority will be given to applicants that meet the following criteria:
o For-Profit Businesses that operate out of a physical "brick and mortar" location
within the City of Fort Worth (excluding personal residence)
o Businesses that did not receive funding through either the Paycheck Protection
Program(PPP) or the Emergency Injury Disaster Loan(EIDL) Program
o Businesses that were closed to the Covid-19 public health emergency
INELIGIBLE BUSINESS ACTIVITIES
• Franchisors
• Real Estate developers/Investors
• Governmental/taxing agencies/departments
• Hobby businesses as defined by federal law
• Multi-level marketing concerns
• Gambling Concerns, including casinos, racing operations or other activities whose
purpose involves gambling
• Lobbying organizations and political organizations subject to Internal Revenue Code
527
• Sexually Oriented Businesses(live performances,product sales, items or materials)
• Businesses primarily engaged in lending, investments, or to an otherwise eligible
business engaged in financing or factoring.
• Pawn Shops
• An individual who employs household employees such as nannies or housekeepers
• Concerns engaged in illegal activities under federal, state or local laws
• A business that is otherwise prohibited by federal or Texas law
• A business that is ineligible or precluded to receive federal or State of Texas funding
due to federal laws(including but not limited to the CARES Act)or Texas laws
Fort Worth City Council Members, City of Fort Worth Employees and their immediate family
members are not eligible for this program. Owners of multiple businesses will only be eligible
for one award. Locally owned businesses with more than three locations in the City of Fort
Worth are ineligible for the program.
DOCUMENTATION REQUIRED
Eligibility for funding under this program will include review of the application and
supporting documentation including but not limited to:
• Included with Application
o A completed Form W-9
o Documentation of going concern or business which would consist of one of the
following:
■ Secretary of State Texas File number; State of Texas License number;
DBA, 2018 or 2019 tax return (return only, schedules not required);
Employer Identification Number or Individual Taxpayer Identification
Number, Certificate of Filing. If sole proprietor, please provide
documentation on when you started your business. Ex. Include
Occupational license, Sales Tax Certificate
o For Sole Proprietor Applicants provide 2018 or 2019 Schedule C
o Most recent payroll report and number of employees— 1 st QTR 941 for 2020
o Profit& Loss Statement as of March 2020 and 2019 P&L
• Signature on Application required:
o Good Faith Certification as to truth and accuracy of information provided
o That the grant request is necessary due to conditions caused by COVID-19
o Agreement to audit of the use of grant funds received
REPORTING
• Grantee will be required to outline in the application the eligible activities that the grant
money will be used for.
PROCESS
• Application Period will open May 26, 2020 and close June 8, 2020
• All applications and documentation will be submitted on-line through a portal
developed by the City of Fort Worth and the United Way
• The Fort Worth Chamber, Fort Worth Metropolitan Black Chamber of Commerce and
Fort Worth Hispanic Chamber of Commerce will promote the program and
direct/support their membership in the application/documentation process
• City staff, along with one representative from each of the Chambers, will review the
applications and eligibility requirements
• Final grant eligibility will be made by the review committee, and if met, a funding
recommendation will be sent to the United Way
• United Way will cut the check to businesses owners and track all grants made under the
program