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INFORMATIONAL MEMO <br />Page 2 <br />• The State Small Business Credit Initiative (SSBCI) is implemented by the US <br />Department of the Treasury to strengthen state programs that support private financing <br />to small businesses such as revolving loan funds, venture capital funds, and loan <br />guaranty programs. ARPA provided an additional $10 billion. Of the $10 billion, $2.5 <br />billion is allocated for programs that support businesses controlled or owned by socially <br />and economically disadvantaged individuals. $500 million is allocated for technical <br />assistance to minority businesses and $500 million for very small businesses. <br />• The Economic Adjustment Assistance program is implemented by the US Department of <br />Commerce to prevent, prepare for, and respond to coronavirus and for necessary <br />expenses for responding to economic injury as a result of coronavirus. ARPA provided <br />an additional $3 billion. Most of the funds will be distributed through the US Economic <br />Development Agency (EDA) and we anticipate those funds starting to become available <br />this year. We do not yet know the specifics of how those funds will be used. <br />• The Community Navigator Pilot Program is being launched by the US Small Business <br />Administration to use culturally knowledgeable partners to connect small businesses in <br />underserved communities to business technical assistance. ARPA provided $100 million <br />over a two-year period. Business assistance organizations may apply to be the "hub" to <br />create a regional program connecting local service providers to small businesses. <br />Applications are due July 12. <br />State Programs <br />In addition to federal funding through ARPA, the State of Washington recently awarded $240 <br />million to small businesses under round four of the Working Washington grant program. The <br />State's Department of Commerce anticipates conducting a fifth round this summer with an <br />additional $50 million. <br />Eligible Uses of City ARPA Local Fiscal Recovery Funds for Business Support <br />The ARPA provides that cities can use their Local Fiscal Recovery Fund allocations for a variety <br />of purposes. In terms of small business support, the funding may be used to help small <br />businesses address financial challenges caused by the pandemic and to make investments in <br />COVID-19 prevention and mitigation tactics, as well as to provide technical assistance. To <br />achieve these goals, recipients may employ this funding to execute a broad array of loan, grant, <br />in-kind assistance, and counseling programs to enable small businesses to rebound from the <br />downturn. The ARPA specifically identifies industry sectors that were particularly hard-hit by the <br />COVID-19 emergency such as tourism, travel, and hospitality are eligible for support. <br />The ARPA also allows cities to use their LFRF funds to invest in water, sewer, and broadband <br />infrastructure. Cities can also use "lost revenue" for general government services. Depending on <br />how those investments are made, the investments may help small businesses. <br />DISCUSSION <br />It is likely that many Tukwila businesses are still financially hurting from the pandemic, <br />especially those in the tourism, travel, and hospitality sectors. If we were to survey our <br />businesses on what they need to recover, they would probably not want loans. The government <br />has issued a lot of loans and funds are still available and becoming more flexible. Businesses <br />16 <br />