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Page 1 of 2 NEW BUSINESS – 10C MEMORANDUM DATE: September 28, 2020 TO: Honorable Mayor and City Councilmembers Dave Perrault, City Administrator FROM: Mike Mrosla, Community Development Manager/City Planner SUBJECT: Revisions to the 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 2020-046 removing the minimum number of employees required per the program parameters and extending the application window for the Small Business Emergency Assistance Grant Program to allow for additional businesses with less than three (3) employees to apply. Background At its August 24, 2020 meeting, the City Council adopted resolution 2020-035 establishing a Small Business Emergency Assistance Grant Program in response to the COVID-19 pandemic. At the direction of the City Council, the City of Arden Hills made available $150,000.00 of CARES Act Funds to support the Grant Program. The intent of the grant program is 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 provides locally-owned and operated businesses with an emergency grant of up to $5,000. The established grant amount allows for up to 30 Arden Hills business to apply and receive funding. To be eligible to receive a grant, a business must demonstrate loss due to COVID-19 and meet the eligibility requirements and program parameters. The application window closed on Friday, September 25. At the time of writing this, city staff has received 18 applications and has awarded funds to 13 businesses. Staff will provide an update to Council as to any new applications received. Discussion The previous program parameters require businesses to employ between 3 and 45 persons prior to March 31, 2020 in order to participate in the program to receive funding. Staff recently has been contacted by a couple of local businesses that conform with all of the other program parameters except they employ less than three (3) employees. The businesses include self-fitness centers and other personal/business services. Should Council want to remove the minimum employee threshold, staff recommends reopening the application window starting Tuesday, September 29 through Tuesday, October 6, 2020 to allow businesses with less than three (3) employees the ability to apply