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NEW BUSINESS— 9A ,- iRZEN HILLS MEMORANDUM DATE: August 24, 2020 TO: Honorable Mayor and City Councilmembers Dave Perrault, City Administrator FROM: Mike Mrosla, Community Development Manager/City Planner SUBJECT: Small Business Emergency Assistance Grant Program Budgeted Amount: Actual Amount: Funding Source: N/A $150,000 CARES Act Council Should Consider A motion to adopt resolution 2020-035 establishing a Small Business Emergency Assistance Grant Program in response to the COVID-19 pandemic. Background On June 25 Governor Tim Walz announced a plan to distribute $853 million in federal funding to Minnesota communities impacted by the COVID-19 pandemic. The funding was authorized by the Federal Coronavirus Aid,Relief, and Economic Security(CARES)Act. City funding was calculated on a formula of$75.34 per capita and the amount allocated to the City of Arden Hills totals$745,040. The City submitted its certification form for Coronavirus Relief Fund (CRF)monies on July 6. The funds are now available and the City is required to expend all of its funds by November 15, 2020. At its August 10, 2020 work session, the City Council and staff discussed establishing a Small Business Emergency Assistance Grant Program in response to the significant challenges currently facing local businesses related to the COVID-19 pandemic. The State of Minnesota and Ramsey County have previously provided funding opportunities to businesses that have been impacted by COVID-19. Due to demand, the programs were oversubscribed and many businesses did not meet eligibility requirements imposed by the various programs. According to City data, Arden Hills has approximately 150 businesses. Ramsey County has provided funding to seven (7) Arden Hills businesses and it is unknown at this time if any local businesses received assistance from the State. At the direction of the City Council, the City of Arden Hills will make available $150,000.00 of CARES Act Funds to create a Small Business Emergency Assistance Grant Program. The intent of the grant program would be to provide financial assistance to local businesses to help them continue their operations,preserve employment, and prevent business closures in an effort to encourage long- term economic vitality in Arden Hills. The program would provide locally-owned and operated businesses with an emergency grant of up to $5,000. To be eligible to receive a grant, a business must demonstrate loss due to COVID-19 and meet the eligibility requirements and program parameters (Attachment A). Page 1 of 2