SMALL BUSINESS RELIEF GRANT PROGRAM + CITY CARES ACT FUNDING FOR SMALL BUSINESSES City Council Meeting June 16, 2020
2 RECOMMENDATIONS • Determine this action is exempt from the CEQA • Authorize the City Manager to develop and administer a Small Business Relief Grant Program, funded with $1.97 million in Coronavirus Relief Funds v v • Allocate $36,469 of the Coronavirus Relief Funds to promote the Shop Costa Mesa initiative through Costa Mesa BAC • Allocate an additional $240,000 (for a total of $740,000) of the Coronavirus Relief Funds to fund right-of-way modifications to assist local businesses address lost capacity as a result of COVID-19 measures
3 BACKGROUND • March 19, 2020: Stay-at-Home Order • April 21, 2020: The City Council received an introduction into the efforts of the Costa Mesa BAC • June 2, 2020: The City Council approved agreement with County as subrecipients of CARES Act Funding This funding is meant to assist small businesses through grants only
4 FUNDING DISTRIBUTION Amount Project $500,000 CIP Right-of-Way Project (previously approved) $240,000 CIP Right-of-Way Project (new) ($740,000 total) $1,970,000 Small Business Relief Grant Program $36,469 Shop Costa Mesa, Costa Mesa BAC
5 RIGHT-OF-WAY FUNDING • To be used to implement parklets, partial closures, restriping, etc. • Aimed at assisting local businesses attain pre–COVID-19 capacities through the use of selected outdoor areas for uses such as outdoor dining
6 GRANT PROGRAM FUNDING • “Expenditures related to the provision of grants to small businesses to reimburse the costs of business interruption caused by required closures” • Many cities are using a substantial portion of these funds to deploy small businesses grant programs
7 ELIGIBILITY FOCUS FOR BUSINESS • Independently-owned business in Costa Mesa • Located in commercial or industrial Space • Must have business license for a minimum of six months as of March 19, 2020 • Business must have 20 or less employees, full-time equivalent • Must be in good standing with the City • Priority given to businesses that did not received PPP or EIDL funding • Business must follow the State’s re-opening guidance • The business must submit an application
8 GRANT AMOUNT BASED ON EMPLOYEES Based on Number of Employees Amount 1 (15% of Businesses) $2,500 2 - 3 (24% of Businesses) $5,000 4 - 6 (20% of Businesses) $10,000 7 - 20 (25% of Businesses) $15,000
9 SPECIFICS ON DEPLOYMENT • SBDC will administer the Grant Program • City will send out mass emails, post information on costamesabac.com and City website, conduct multiple webinars and develop a flyer with SBDC • Target launch date of late June Live lottery will be conducted to identify the awardees Once awardee’s information is verified, money will be deployed Funds deployed 50% at a time
10 COSTA MESA BAC UPDATE • April 21: Intro to Costa Mesa BAC • May 6: acquired additional data for tracking and tracing • May 21: Launched Shop Costa Mesa Program • May 25: Launched Call Center Program • May 25: Launched Website • June 8: Provided Weekly-updated Resource Guide Assisted in Community Resource Guide Mail out • June 9: Provided Universal Signage • June 9: Established a weekly email mass notification • June 11: LA Times Live Stream “Getting Back to Business”
11 COSTA MESA BAC FUNDING • Promotional materials • Content for Shop Costa Mesa champions • Support materials for businesses • Software as a service to help incentivize Shop Costa Mesa • Improvements to the Website to increase its ease of use by staff, businesses, and patrons
SMALL BUSINESS RELIEF GRANT PROGRAM + CITY CARES ACT FUNDING FOR SMALL BUSINESSES City Council Meeting June 16, 2020
13 Business Groups Median Sales Median Number of Employees All Businesses $600,000 5 Small Business in Commercially Zoned Properties $960,000 5 (All Commercial Uses) All Restaurants and Food/Beverages Uses $385,500 6 *Surveyed data from ESRI’s Business Analyst pulled June 1, 2020, (based on surveyed of 100 to 375 businesses)
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