2022-010 SLFRF Small Business GrantDate: February 11, 2022 Report No. 2022-010
INFORMAL STAFF REPORT
TO MAYOR AND CITY COUNCIL
SUBJECT:
Update on the Small Business Rent and Mortgage Relief Grant funded by the American Rescue Plan
(ARP) Act – State and Local Fiscal Recovery Funds (SLFRF)
EXECUTIVE SUMMARY:
The City received $11.6M in the first tranche of SLFRF allocations. Program development continues
on the City Council-approved Small Business Rent and Mortgage Relief Grant.
DISCUSSION:
In March 2021, the American Rescue Plan Act (ARP) was signed into law providing $1.9 trillion in
funding for relief from the COVID-19 public health emergency and its economic impacts. As part of
the ARP, the Coronavirus State and Local Fiscal Recovery Fund (SLFRF) was established 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. The City of Denton will receive a total $23.29 million in federal aid over two years
under SLFRF with half of the funding ($11.65 million) becoming available in May 2021.
The ARP identifies small business as a sector hit hard by the pandemic. Assistance and support to
this area is an allowable expense under the SLFRF program. On July 27, 2021, Denton City Council
approved $2 million of one-time grant funding to support small businesses based on feedback from
the community.
The Grants Management Office was designated to develop a grant program using the approved
funds. Staff identified a similar grant program in the City of Austin. The grant supports small
business using SLFRF to reimburse eligible expenses during the City’s Stay at Home Order and is
being administered by the Better Business Bureau. The grant program was used as a model to draft
eligibility criteria and requirements. The Grants Management Office worked with Economic
Development staff to review and provide input and has also engaged other partners in the process.
Staff plans to finalize the grant criteria and requirements and release a Notice of Funding
Opportunity in late February or early March 2022. The application period will be open for 30 days.
Awards are expected to be made in the April to May timeframe.
ATTACHMENT(S):
Draft Notice of Funding Opportunity
STAFF CONTACT:
Laura Behrens, Grant Administrator
Laura.Behrens@cityofdenton.com
City of Denton
Small Business Rent / Mortgage Relief Program
Solicitation Release Date:
Application Deadline:
Overview
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. 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 outlined
as:
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.
Funding
Assistance
Available
Funding
Maximum
Award
Performance
Start Date
Performance
Duration (Months)
Rent/Mortgage
Relief
$2,000,000 $40,000 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 other
business 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 from gambling activities
Businesses engaged in lobbying
Houses of worship or religious institutions
Government entities
Nonprofits
Individuals
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
March 1, 2021 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 March 1, 2021 has been deferred but is
still due on a date after March 1, 2021 that rent or mortgage payment is eligible for
reimbursement. Rent or mortgage payments from March 1, 2020 to March 1, 2021 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 employees
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 March 1, 2021 and scoring
criteria.
Scoring – 50 Points
Economic Impact (25 Points)
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 of raw
materials and finished 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