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City of Tukwila <br />Allan Ekberg, Mayor <br />INFORMATIONAL MEMORANDUM <br />TO: Planning & Community Development Committee <br />CC: Mayor Ekberg <br />FROM: Derek Speck, Economic Development Administrator <br />DATE: June 6, 2021 <br />SUBJECT: American Rescue Plan Act Small Business Support <br />ISSUE <br />This memo is provided as an overview of small business support that is funded through the <br />American Rescue Plan Act (ARPA) as the City decides how to use the allocation of ARPA funds <br />that it will receive. <br />BACKGROUND <br />The American Rescue Plan Act (ARPA) that was approved in March of 2021 is a $1.9 trillion <br />federal COVID-19 stimulus package. It includes significant funding for small business support <br />through a variety of federal programs. It also includes a $350 billion Coronavirus State and <br />Local Fiscal Recovery Fund (LFRF), of which $130 billion is intended for municipalities and <br />counties. Of the LRF, the City of Tukwila anticipates receiving approximately $4.4 million. The <br />City can choose to use some of its LFRF funds for small business support. <br />Federal Programs <br />Following is a summary of the business assistance programs receiving the larger allocations of <br />ARPA funds. Starting in 2021 the federal programs have increased emphasis on serving small <br />and disadvantaged businesses. <br />• The Paycheck Protection Program (PPP) is implemented by the US Small Business <br />Administration (SBA) and provides low interest loans and grants ("forgivable loans") to <br />businesses. In 2021 the program received an additional $284 billion of funding from <br />ARPA. The application period closed on May 31, 2021. To date, the SBA reports the <br />program issued over 11.8 million loans (including forgivable loans) for a total of nearly <br />$800 billion. <br />• The Economic Injury Disaster Loan (EIDL) is implemented by the SBA and provides low <br />interest loans (plus some grants, called "advances") to small businesses. As of June 3, <br />2021 the SBA has issued over $209 billion in EIDL loans and $2 billion in grants. The <br />application period for grants is closed but the SBA is still accepting applications for <br />loans. <br />• The Restaurant Revitalization Fund (RRF) is implemented by the SBA and provides <br />grants to businesses who sell food and beverages to the general public. ARPA provided <br />$28.6 billion for RRF. The application period closed on May 24, 2021. <br />15 <br />