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2022-061 Small Business Grant AwardsDate: September 23, 2022 Report No. 2022-061 INFORMAL STAFF REPORT TO MAYOR AND CITY COUNCIL SUBJECT: Small Business Rent and Mortgage Relief Grant funded by the American Rescue Plan Act (ARPA) – State and Local Fiscal Recovery Funds (SLFRF) EXECUTIVE SUMMARY: The ARPA identifies small businesses as a sector hit hard by the pandemic. Assistance and support to this area is an allowable expense under the SLFRF program. Denton City Council approved $2 million of one-time grant funding to support small businesses in the FY 2022 budget based on feedback from the community. A Notice of Funding Opportunity (NOFO) was issued in June 2022 and awards to 37 small businesses totaling $913,700 have been distributed. DISCUSSION: In March 2021, ARPA 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 ARPA, the 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 has received a total of $23.29 million in federal aid under this program. The ARPA identifies small businesses as a sector hit hard by the pandemic. Assistance and support to this area is an allowable expense under the SLFRF program. On October 1, 2021, Denton City Council approved $2 million of one-time grant funding to support small businesses based on feedback from the community. On March 1, 2022, a resolution was approved outlining the Small Business Rent and Mortgage Relief grant program. The NOFO was released and the application period opened on June 1, 2022, for 30 days. The Grants Office worked with the City’s Economic Development Department and the Denton Chamber of Commerce to publicize the opportunity. The application period was extended an additional week to allow applicants more time to complete the application process and to accept any new applications. The Grants Office reached out to applicants providing reminders of the program and met with several applicants providing assistance through the process. The City received 43 applications under the Small Business Grant. Of the 43, three (3) applications were started but not completed and three (3) did not meet the eligibility requirements. Awards to 37 small businesses have been distributed. The maximum award is $40,000 with the average award being approximately $25,000. The term of the grant will run from September 1, 2022, to August 31, 2023. A progress and financial report from the grantees will be due on March 15, 2023, and a final report due on September 15, 2023. Updates on the program will be provided through staff reports. Date: September 23, 2022 Report No. 2022-061 CONCLUSION: Staff will evaluate programs approved for funding under ARPA-SLFRF and provide recommendations on the reallocation of the remaining funds. ATTACHMENT(S): Exhibit 1 Small Business Rent and Mortgage Relief Grant Awards STAFF CONTACT: Daniel Jones Grant Analyst Daniel.Jones@cityofdenton.com Laura Behrens Assistant Director of Procurement Laura.Behrens@cityofdenton.com Date: September 23, 2022 Report No. 2022-061 Exhibit 1 Applicant Proposed Award Painting with a Twist Denton $14,588.12 Norman Roscoe $30,000.00 TB Winds $14,550.00 OrbitInk, LLC $23,525.00 Cartwright's Ranch House , LLC $36,000.00 Komodo Loco $38,730.96 Twisted Bodies LLP $30,036.00 GSAT Incorporated $28,888.00 The Chestnut Tree $11,299.00 Soma Massage Therapy $8,400.00 Bullseye Bike Shop $7,622.50 Rising Sun Cafe $25,607.00 East Side Denton $40,000.00 Sylvan Learning of Denton $22,171.82 La Di Da $16,799.78 Mellow Mushroom $40,000.00 JT Clothiers, Inc $27,934.71 Loco Cafe $40,000.00 Denton Health & Fitness $10,000.00 Velo Republic $17,400.00 Beth Marie's (Square)$31,066.08 Heavenly Taylored Sweets $6,000.00 Allison Engineering Group, Inc $23,513.05 Denton County Brewing Company $21,600.00 Captiva Salon & Spa $22,828.65 Value Added Systems Inc $31,800.00 Edith Knoles Color $2,610.00 Lucky Lou's $40,000.00 Susie's Snack Shop $6,145.00 Harvest House $32,260.00 Discount Sport Nutrition $33,319.86 Dix Coney Island $21,434.70 Oak Street Drafthouse LLC.$24,000.00 II Charlies Bar $40,000.00 Dan's Silverleaf $21,300.00 Discount Trophies, Etc LLC $32,270.00 Beth Marie's At Unicorn Lake Ltd Llp $40,000.00 TOTAL $913,700.23