HomeMy WebLinkAbout22-42222-422RESOLUTION NO.
A RESOLUTION OF THE CITY OF DENTON APPROVING THE SMALL BUSINESS RENT
AND MORTGAGE RELIEF GRANT PROGRAM; AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, on March 11, 2021, the American Rescue Plan Act was signed into law and
established the Coronavirus State Fiscal Recovery Fund and Coronavirus Local Fiscal Recovery
Fund also known as the Coronavirus State and Local Fiscal Recovery Funds (“SLFRF”) program ;
and
WHEREAS, the purpose of SLFRF is to provide support to State, territorial, local, and
Tribal governments in responding to the economic and public health impacts of COVID-19 and in
their efforts to contain impacts on their communities, residents, and businesses; and
WHEREAS, on July 27, 2021, the City Council approved one-time funding in grant
assistance for small businesses; and
WHEREAS, on September 21, 2021, the City Council adopted Ordinance No. 21-1986
which authorized the creation and expenditure of funds for the purposes authorized by the SLFRF
program; and
WHEREAS, a notice of funding opportunity for the Small Business Rent and Mortgage
Relief grant establishes the requirements and procedures to execute the grant program; and
WHEREAS, the City Council deems it in the public’s best interest to provide support to
small businesses meeting the purpose of use for SLFRF funding and to formally approve the
guidelines under the notice of funding opportunity; NOW THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES:
SECTION 1. The following Notice of Funding Opportunity attached hereto and made a
part hereof, is hereby adopted as an official policy of the City of Denton.
SECTION 2. The City of Denton shall certify that funding for this program will comply
with the requirements of the US Treasury Department’s SLFRF Final Rule.
SECTION 3. This Resolution shall become effective immediately upon its passage and
approval.
The motion to approve this Resolution was made by J . ss < Da_u is
and seconded by BrI Ap_ Bc,_ k . This Resolution was passed and
approved by the following vote [7 - d:
Aye
al
,/
,/
Nay Abstain Absent
Mayor Gerard Hudspeth:
Vicki Byrd, District 1 :
Brian Beck, District 2:
Jesse L. Davis. District 3 :
Alison Maguire, District 4:
Deb Armintor, At Large Place 5 :
Paul Meltzer, At Large Place 6:
./
,/
PASSED AND APPROVED this the 1 S day of r’IArCh . 2022.
&#Z'’L-GERARD HUDSPETH, MAYOR
ATTEST:
ROSA RIOS, CITY SECRETARY
<S \: \ \ 1:)t F1 1 ;11; 1
, pgL'? - add? ,
APPROVED AS TO LEGAL FORM:
MACK RErNWAND, CITY ATTORNEY
City of Denton
Small Business Rent / Mortgage Relief Program
Overview
On March 1 1, 2021, the American Rescue Plan Act was signed into law and established the
Coronavirus State Fiscal Recovery Fund and Coronavirus Local Fiscal Recovery Fund also
known as the Coronavirus State and Local Fiscal Recovery Funds (“SLFRF”) program. The
purpose of SLFRF is to provide support to State, territorial, local, and Tribal governments in
responding to the economic and public health impacts of COVID-19 and in their efforts to
contain impacts on their communities, residents, and businesses. Funding objectives are outlinedas
•
•
Support urgent COVID-19 response efforts to continue to decrease spread of the virus
and bring the pandemic under control
Replace lost revenue for eligible state, local, territorial, and Tribal governments to
strengthen support for vital public services and help retain jobs
•Support immediate economic stabilization for households and businesses
• Address systemic public health and economic challenges that have contributed to the
unequal impact of the pandemic
The City of Denton was allocated $23.29 million in federal aid across two years. Half of this
funding ($ 11.65 million) became available in May 2021, and the remaining half will be available
in May 2022. As part of the Fiscal Year 2021-2022 budget adoption, City Council approved the
use of SLFRF to fund a grant program supporting small businesses.
Eligible businesses must be able to demonstrate an economic loss associated with the COVID-
19 global pandemic as required by the SLFRF program and must be in the City of Denton.
Applicants may apply for up to $40,000 toward their business property rent or mortgage
payments. Recipients will be required to report how the funds were used to support and sustain
the business as well as the business’s economic standing after a 12-month period.
FundingAssistance
Rent/MortgageRelief
AvailableFundinmo on
PerformanceStart Date
TBD
Performance
Duration (Months
12
Eligibility (Who may apply)
Eligible business applicants must meet the following criteria:
•
•
•
•
•
•
•
Able to demonstrate an economic loss associated with the COVID-19 global pandemic
Business with 25 full-time equivalent (FTE) employees or fewer as of March 1, 2020
(part-time employees should be counted as 0.5 FTE each)
Business with under $5 million in annual revenues
Business has been in continuous operation for at least 2 years as of March 1, 2020
Business organized as partnerships, sole proprietorships, LLCs, cooperatives, or otherbusiness structures
Business able to provide one (1) year of federal income tax returns
Business headquartered in the City of Denton.
Ineligible applicants:
•
•
•
•
•
•
•
•
•
•
•
•
•
Businesses not headquartered in a City of Denton
Businesses with over 25 full-time equivalent employees or fewer as of March 1, 2020
Businesses with over $5 million in annual revenues
Businesses debarred, suspended, or divested from contracting with federal, state or local
governments
Businesses without an Employer Identification Number (EIN)
Businesses engaged in multi-level marketing
Businesses that derive any portion of their annual revenue &om gambling activities
Businesses engaged in lobbying
Houses of worship or religious institutions
Government entities
NonprofitsIndividuals
Full time, permanent City of Denton employees are ineligible to receive these funds
Eligible Expenses
Rent and mortgage payments for the business property made between March 1, 2020 and August
1, 2020 are eligible for reimbursement under the program. Invoices and proof of payment
documentation must be submitted with the application. Documentation totals should match total
expense reimbursements requested.
If an individual owns multiple businesses, they are eligible to apply on behalf of only one
business. If an applicant can document that a rent or mortgage payment for the business property
that would have been due between March 1, 2020 and August 1, 2020 has been deferred but is
still due on a date after August 1, that rent or mortgage payment is eligible for reimbursement.
Rent or mortgage payments from March 1 to August 1 that have been forgiven and are not
required to be paid at a future date are not eligible for reimbursement.
Required Documentation
The following documentation will be required with submission of an application:
•
•
•
•
•
Documentation of expenses eligible for reimbursement (invoice/bill and proof of
payment)Current Balance Sheet & Profit & Loss Statement
Payroll record as of March 2020 to document number of employees2018 and/or 2019 Federal Income Tax Return
Registration with the Secretary of State or County Clerk
Reporting Requirements
Small businesses awarded grant funding will be required to submit a final grant report within 30
days of the grant’s ending term date.
Application Review Information
Grant awards for businesses will be calculated based upon a business’ ability to document
expenses eligible for reimbursement between March 1, 2020 and August 1, 2020 and scoringcrrterla.
Scoring
Economic Impact (25 Points)
•
•
•
e
Documentation of economic loss
On-going COVID 19 response
Working funds (Working funds are the difference between a company’s current assets,
such as cash, accounts receivables (customers’ unpaid bills) and inventories ofraw
materials and Dnished goods, and its current liabilities, such as accounts payable.)
Likely impact of not receiving grant
Business Scale (15 Points)
• Number of employees (FTE’s)
• Annual revenues
• Years in operation
Equity (10 Points)
• Race/Ethnicity of ownership
• Gender of ownership
• Low-to-moderate income location