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INFORMATIONAL MEMO <br />Page 3 <br />probably would want grants. However, if we were to use our ARPA funds for small business <br />grants, it would reduce the funds available for other programs and general government services. <br />Some cities did not have much lost revenue so they would not be concerned by that. Tukwila <br />did have considerable lost revenue and impacts to our general government services. <br />Since the start of the pandemic, staff has invested considerable time trying to help small <br />businesses understand what resources are available. Although the federal and state <br />governments have significantly improved outreach for small and disadvantaged businesses in <br />the past year, staff believes there still are significant gaps and an investment in a community <br />navigator program for small businesses would be worthwhile. Although Tukwila could fund a <br />small business community navigator program on its own, it may be more efficient to partner with <br />other organizations. The SBA's new Community Navigator Pilot Program may help fill that need <br />but at this time we are not aware of a local organization who plans to apply. The State's <br />Department of Commerce plans to apply but we do not know the extent to which they will focus <br />on South King County. Given that the SBA Community Navigator program is funded at $100 <br />million for 50 states, it is likely only one or two organizations per state will receive funding. <br />The pandemic has highlighted the importance of digital resources and digital literacy for <br />businesses. To the extent the City is able to help broadband expand in our area, it is likely to <br />help small businesses. This year we will use our grant from the Port of Seattle to do a small <br />digital literacy program with a few small businesses. If that is successful and we see a larger <br />need, we could use ARPA funds to expand that program. <br />We have been in contact with staff from some of our adjacent South King County cities and they <br />are still evaluating how to use their ARPA funds to help small business. There is some general <br />interest in creating a revolving loan fund or grant program and agreement on the need for more <br />community navigators. We will continue those conversations. <br />At this time we think it will be better to see how some of the federal and state programs are <br />formed and how they apply to Tukwila before we decide on a specific use of ARPA funds to <br />support our small businesses. It would not be a good use of funds to duplicate services <br />provided by someone else. However, we think it is likely that even once the other programs <br />take effect, there will still be some gaps and it would then make sense for us to create a <br />program or partner with other programs to ensure focus on Tukwila. <br />Staff recommends setting aside $200,000 of the ARPA funds for possible small business <br />support to be decided later this year. <br />FINANCIAL IMPACT <br />None at this time. <br />RECOM MENDATION <br />Discussion only <br />17 <br />