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Home My WebLink About7.2 A motion authorizing the expenditure of $253,000 of Community Development Block Grant Coronavirus (CDBG-CV) Funds for the CDBG Small Business Assistance Grant Program.Item Cover Page wubject A motion authorizing the expenditure of $253,,000 of Community Development Block Grant Coronavirus t Funds for the CDBG Small Business Assistance Program. Meeting1 2021 - REGULAR MEETING OF THE MOUNT PROSPECT BOARD Pollar Amount mudget SourceDi Category NBUSINESS ActionType supportThe COVID-19 pandemic continues to negatively impact the local business community. Despite encouraging trends in reduced infections and hospitalizations, and increased vaccination rates,, public health experts are maintaining mitigation requirements to contain the spread of the coronavirus while vaccines are distributed to the general public. Most businesses are allowed to operate,, but at limited capacity, and demand for many products and services remains low. Small businesses are particularly vulnerable to economic volatility and may not have the capacity to obtain relief though private or public business assistance programs. In December 2020, Village staff developed a COVID-19 Restaurant Assistance Grant Program. The program awarded $590,,000 in grants to local restaurants to operations throughoutdoordining was notpossible 2nd indoor capacity was limited by public health guidelines. The funds were made ivailable through a reallocation of economic development monies in the Village budget. The program was well-received by the business community and helped local establishments keep their doors open into the new year. within Mount Prospect that rely on in-person transactions, such as retail,, service,, and entertainment. The program would be funded through a special allocation of Community Development Block Grant Coronavirus (CDBG-CV) funds to be used to prevent, prepare for, and respond to the Coronavirus. The Village has committed roughly $250,000 of - !BG -CV funds for: Program. Key points of the CDBG Small Business Assistance Program: Qualified businesses can r -q - • to $10,000 to reimburse the costsof business interruption caused by COVID-19 mandated closures and social distancing requirements. Eligible reimbursable expenses include payroll/wages of low- and moderate - income employees, mortgage/rent of commercial space, and PPE and supplies to operate business safely in accordance with COVID guidelines. Businesses receiving assistance must be able to create or retain at least one low- or moderate -income job (as defined by the US Department of Housing and Urban Development). Businesses will be required to disclose all capital applied for or received through alternative sources, including government, non-profit, or charitable relieff in order to prevent duplication of benefits. Restaurants . apply eligibility requirements, however, go to qualifying businesses that did not receive the Village restaurant grantp Businesses that have received other forms of assistance (PPP or EIDL loans,, for ;txample) may apply for the program, provided the CDBG Village award is not used for expenses that have already been reimbursed from another source. The program administered a subrecipient nonprofit • • Village.partnership with the Village staff support the use of CDBG-CV funds to support local small businesses that employ low- and moderate -income workers,, and who may not have access to capital through established business banking relationships. Although the economic outlook appears • improving, small • _ to •' assistance •' stay in compliance with public health guidelines and to meet ongoing business expenses. Village staff presented the CDBG Small Business Assistance Program to the Village Economic Development Commission on April 8th,, 2021. The Commission provided input on the program details and recommended the program for consideration by the Village Board. 2 Alternatives 1. Approve a motion authorizing the expenditure of $253,,000 of CDBG-CV funds for the ■SmallBusinessaGranto g Staff2. Discretion of the Village Board. Recommendation -i • Staff recommends that the Village Board approve a motion authorizing the expenditure ! $253,,000 11111111 IIIIIIIIIIq 11111111111 ATTACH M E NTS: CDBG- CV— ED_Prog ra m_Su m ma ry_03.31.21. p d f 3 CDBG Small Business Assistance Program Summary A. Introduction The Village of Mount Prospect is accepting applications for relief funds to support local small businesses hardest hit by the COVID-19 pandemic. Qualified businesses can request up to $10,000 to reimburse the costs of business interruption caused by COVID-19 mandated closures and social distancing requirements. Eligible expenses include payroll / wages of low- and moderate -income employees, mortgage / rent of commercial space, and PPE and supplies to operate business safely in accordance with COVID guidelines. Businesses receiving assistance must be able to create or retain at least one low - or moderate -income job (as defined by HUD). B. Available Funding The Village of Mount Prospect received a special allocation of Community Development Block Grant Coronavirus (CDBG-CV) funds to be used to prevent, prepare for, and respond to the Coronavirus. The Village has committed up to $253,927 of the CDBG-CV funds to the CDBG Small Business Assistance Program. C. Non-essential Businesses The small business assistance program is intended to support local retail, service, and entertainment businesses that rely on in-person transactions for their primary source of revenue and were subject to closure during Phase I and II of the State of Illinois Coronavirus Response Plan. Only non-essential businesses whose operations were interrupted or prohibited by a Gubernatorial Executive Order are eligible to receive relief. See Executive Order 2020-10. Examples of non-essential businesses include: • Entertainment venues • Bars and restaurants with indoor dining • Personal care services • Health clubs and gyms • Non-essential retail shops D. Business Eligibility Businesses must meet the following criteria to be considered for relief. 1. Located in a commercial space within the corporate limits of the Village of Mount Prospect. 2. Funding will help retain or create at least one low- or moderate -income job, as defined by HUD. a. The job retained or created has an annualized gross salary of less than $51,000. b. Employee must be on payroll as W-2 worker to qualify. 3. Non-essential business whose operations were interrupted or prohibited by a Gubernatorial Executive Order, such as Executive Order 2020-10. 4. For-profit business that is not part of a retail chain. a. If a locally -owned franchise, cannot have received COVID-19-related corporate financial assistance. 5. Continuously licensed with the Village since January 2020 and in good standing at the time of award. 6. No law suits, judgements, or liens filed against the business. 7. Not operating in violation of federal, state, or local laws. 8. No bankruptcy or foreclosure within the last six months. Updated: 4/1/21 Page 1 of 2 4 CDBG Small Business Assistance Program Summary 9. Must disclose any capital applied for or received through alternative sources, including government, non-profit, or charitable relief. 10. Not on the list of ineligible businesses. E. Eligible Uses of Funds CDBG Small Business Assistance Program funds may be used to reimburse the following activities: • Payroll /wages of low- and moderate -income employees • Mortgage /rent of commercial space • PPE and supplies to operate business safely in accordance with COVID guidelines F. Ineligible Uses of Funds CDBG Small Business Assistance Program funds may NOT be used for: • Any expenses that are not related to the prevention of, preparation for, or response to the Coronavirus. • Supplanting or substituting expenses currently paid for by other government, non-profit, or charitable sources. • Purchase of equipment, construction, or expansion -related costs, unless it is specifically related in response to COVID-19. G. Ineligible Businesses The following businesses are ineligible to receive relief through the Mount Prospect CDBG Small Business Assistance Program: • Non-profit Organizations • Religious or Political Organizations or Businesses • Home Occupations • Corporate owned chains. Local franchise owners can apply for 1 business located in the Village limits. • Multi-level Marketing Businesses • Independent Direct Sales Consultant Businesses • Independent Cab Drivers • Real Estate Investment and Rental Property Management Companies • Financial Services Providers (e.g. payday loan stores, currency exchanges) • Retail Liquor Stores • Medical or Recreational Marijuana Growing Operations or Dispensaries • Retail Tobacco or Vaping Shops • Resale Shops or Used Clothing Stores • Pawn Shops • Massage parlors • Flea markets • Laundromats Updated: 4/1/21 Page 2of2 5