HomeMy WebLinkAboutPED 2020-06-15 Item 1E - Discussion - Business Recovery Update and GrantsCity of Tukwila
Allan Ekberg, Mayor
INFORMATIONAL MEMORANDUM
TO: Planning and Economic Development Committee
FROM: Derek Speck, Economic Development Administrator
CC: Mayor Ekberg
DATE: June 9, 2020
SUBJECT: Business Recovery Update: Grants
ISSUE
This item is intended for discussion of grants related to business recovery including potential
uses and applications for additional grants.
BACKGROUND
Currently, the City anticipates receiving two grants that are intended to be used, or can be used,
for business recovery from COVID-19.
In February 2020 the Planning and Economic Development Committee application for a
$20,930 grant from the Port of Seattle for economic development. At that time, the application
was intended to include: a residential component into a digital media program to grow tourism;
development attraction, and the Kent Valley WA business attraction website. Staff would like to
revise the application to focus more on business recovery.
The City of Tukwila anticipates receiving $33,000 from King County for business recovery. We
expect to receive information on criteria and eligible uses within the next few weeks.
There are a few additional grant opportunities the City could explore for business recovery.
1. Some cities are able to use Community Development Block Grant (CDBG) funds for
economic development and business recovery. For example, the City of Seattle used
CDBG funds for small business grants. The federal government is distributing additional
CDBG funds due to COVID-19. Tukwila does not receive a direct CDBG allocation but
could apply on its own or with other cities.
2. The City will be receiving $627,900 from the CARES Act through the Department of
Commerce. The funds can be used to cover city expenditures related to COVID-19
response, providing economic support to those suffering from unemployment and/or
providing economic support to business interruptions.
3. The US Economic Development Administration (EDA) will be distributing $1.5 billion
from the CARES Act for economic development recovery assistance. Of that funding,
the Seattle office (which includes the seven westernmost states) will receive $266 million
for distribution. The application process is competitive and requires a local match of 0%
to 20%. Applications are accepted on a rolling basis with final approvals by September
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30, 2020. Funds need to be spent by September 30, 2022. Individual awards are
anticipated to range from $100,000 to $30 million. One of the key eligibility criteria is to
show how the proposed project would "prevent, prepare for, and respond to coronavirus"
or respond to "economic injury as a result of coronavirus". Examples of projects that
may be funded through this program include economic recovery planning and preparing
technical strategies to address economic dislocations caused by the coronavirus
pandemic, preparing or updating resilience plans to respond to future pandemics,
implementing entrepreneurial support programs to diversify economies, and constructing
public works and facilities that will support economic recovery, including the deployment
of broadband for purposes including supporting telehealth and remote learning for job
skills. An addendum from the Federal Notice of Funding Opportunity is attached.
DISCUSSION
Following are some examples of possible uses of the grant funds for business recovery:
1. Technical assistance to businesses (understanding current programs, applying for loans,
marketing plans, business plans, export assistance, city permits, etc.)
2. Translation and interpretation assistance for businesses
3. Marketing and promotion
4. Employee training
5. Workforce development
6. Recruitment
7. Grants
8. Loans
9. City infrastructure and services (sidewalks, internet, public parking, beautification, etc.)
A key question will be what criteria and process the City would use for selecting businesses to
receive recovery support such as technical assistance, grants, loans, etc.
Federal grant applications, such as for CDBG or the CARES Act EDA funding, can be time
intensive to apply. To be competitive, those applications need to have a high probability of
acceptance and success for the intended businesses.
The residents in South King County, including Tukwila, have been significantly affected by
COVID-19 and perhaps more than in other parts of the County. As such, our small businesses
may also be impacted more and the importance of equity may help the City's application.
FINANCIAL IMPACT
No budget changes are requested at this time.
RECOMMENDATION
Information and discussion only.
ATTACHMENTS
Addendum to EDA CARES Act grant notice of funding opportunity
66 https://tukwilawa.sharepoint.com/sites/mayorsoffice/cc/Council Agenda Items/Mayor's Office/PED 2020-6-15 Infomemo.doc
Addendum to the FY 2020 Public Works and Economic Adjustment Assistance
Notice of Funding Opportunity (FY20 PWEAA NOFO)
for the Economic Development Administration's (EDA)'s Coronavirus Aid, Relief, and Economic
Security Act (CARES Act) Recovery Assistance
EDA's CARES Act Recovery Assistance is an agency effort to assist communities impacted by the
coronavirus pandemic,l The pandemic has caused, and will continue to cause, economic injury to U.S.
regions and communities in devastating and unprecedented ways.
EDA's CARES Act Recovery Assistance is designed to provide a wide -range of financial assistance to
communities and regions as they respond to, and recover from, the impacts of the coronavirus pandemic.
Under this announcement, EDA solicits applications under the authority of its Economic Adjustment
Assistance (EAA) program, which is intended to be flexible and responsive to the economic development
needs and priorities of local and regional stakeholders.
Through the EAA program, EDA provides investments that support a wide range of non -construction and
construction activities, including Revolving Loan Funds, in regions experiencing severe economic
dislocations, such as those brought about by the coronavirus pandemic. As part of CARES Act Recovery
Assistance, EDA will also fund projects that qualify for EAA funding but are similar to the kinds of
projects funded under other EDA programs, such as Public Works, Research and National Technical
Assistance, Planning, Local Technical Assistance, University Centers, and Build to Scale (formerly
Regional Innovation Strategies (RIS)).2 In addition to projects with a regional focus, EDA anticipates
making awards for projects of national scope as part of this funding opportunity.
In general, except as discussed below, EDA's CARES Act Recovery Assistance serves as an addendum to
and follows the same rules as the FY 2020 Public Works and Economic Adjustment Assistance Notice of
Funding Opportunity (FY20 PWEAA NOFO) (link below). For more information, please see EDA's
website at https://www.eda. zov/programs/eda-pro-rg ams/ or contact the EDA representative for your
region who can be found at https://www.eda.gov/contact/.
Funding Availability
The CARES Act (P.L. 116-136) provided EDA with $1,500,000,000, to remain available until
September 30, 2022, to "prevent, prepare for, and respond to coronavirus, ... including for necessary
expenses for responding to economic injury as a result of coronavirus." EDA intends to make these funds
available through the EAA program using the existing procedures specified in the FY20 PWEAA NOFO
(link below).3 Under the EDA's CARES Act Recovery Assistance addendum, EDA expects on a case -
by -case basis to receive applications that exceed the historical averages described in section B.1 of the
FY20 PWEAA NOFO.
1 Section 23005 of the CARES Act, Pub. L. 116-136 (March 27, 2020), defines "coronavirus" as "SARS—CoV-2 or
another coronavirus with pandemic potential."
2 Only applicants who are eligible to receive funding under the Economic Adjustment Assistance program are
eligible to receive grants under EDA's CARES Act Recovery Assistance. EDA will work to ensure that its funding
is not duplicative of other Federal assistance through grant conditions and certifications by applicants as well as
recipients of RLF loans.
s To expedite funding to affected communities and regions, EDA may invite existing or past grantees, such as
Economic Development Districts currently in receipt of Partnership Planning awards, operators of existing
EDA-funded Revolving Loan Funds, and EDA-funded University Centers, to apply using specific procedures. EDA
will independently contact such grantees with instructions.
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EDA has allocated $1,467,000,0004 in supplemental program funds among its offices as follows:
Atlanta Regional Office —
$248,000,000
Austin Regional Office —
$236,000,000
Chicago Regional Office
— $225,000,000
Denver Regional Office —
$193,000,000
Philadelphia Regional Office — $259,000,000
Seattle Regional Office —
$266,000,000
Headquarters — $40,000,000
Note: When appropriate, EDA may exercise its discretion to adiust the allocations to its offices
based on its experience in administering the supplemental appropriations to ensure funds are used
to maximum effect, or to adjust to unforeseen changes in recovery efforts.
Eligible Applicants
Eligible applicants under the EAA program include a(n):
a. District Organization;
b. Indian Tribe or a consortium of Indian Tribes;
C. State, county, city, or other political subdivision of a State, including a special purpose unit of a
State or local government engaged in economic or infrastructure development activities, or a
consortium of political subdivisions;
d. Institution of higher education or a consortium of institutions of higher education; or
e. Public or private non-profit organization or association acting in cooperation with officials of a
political subdivision of a State.
EAA Program and Application Requirements for EDA's CARES Act Recovery Assistance
The following EAA program requirements are specific to EDA's CARES Act Recovery Assistance. This
is an addendum to the FY20 PWEAA NOFO (link below), and unless otherwise stated below, the
requirements of the FY20 PWEAA NOFO apply. Please see the FY20 PWEAA NOFO for information
on other EAA program requirements, award information, and the content and form of application
submissions.
CARES Act Recovery Assistance Projects
Successful applications will enable affected communities to respond to the impacts of the coronavirus
pandemic by supporting affected businesses and communities, including by providing technical assistance
to retain existing and hire new employees; by providing a range of skills -training and workforce
development projects to help employees compete for high -quality jobs; and by developing and
implementing strategies to diversify regional economies to create jobs in new or existing industries. EAA
investments are designed to help communities catalyze public -private partnerships to foster collaboration,
attract investment, create jobs, and foster economic resiliency and prosperity. Examples of projects that
may be funded through CARES Act Recovery Assistance include economic recovery planning and
preparing technical strategies to address economic dislocations caused by the coronavirus pandemic,
4 Congress authorized up to $30,000,000 to cover EDA's administrative and oversight activities related to these
awards and a transfer of $3,000,000 to the Department of Commerce's Office of the Inspector General for related
investigations and audits.
preparing or updating resiliency plans to respond to future pandemics, implementing entrepreneurial
support programs to diversify economies, and constructing public works and facilities that will support
economic recovery, including the deployment of broadband for purposes including supporting telehealth
and remote learning for job skills.
Economic Distress Criteria and Special Need; Pandemic Response Requirement
Section C.3. of the FY20 PWEAA NOFO (starting on pg. 13) sets out the economic distress criteria for
the EAA program, including "Special Need" criteria. EDA has determined that economic injury from the
coronavirus pandemic constitutes a "Special Need," and eligibility may be established on that basis
without reference to the other economic distress criteria specified in the FY20 PWEAA NOFO. This
determination of nationwide eligibility for these funds is consistent with the President's March 13, 2020
Proclamation on Declariniz a National Emerzency Concerninz the Novel Coronavirus Disease (COVID-
19) Outbreak that established a national emergency for all states, tribes, territories, local governments,
and the District of Columbia (hiips://www.fema.gov/news-release/2020/03/13/covid-19-emergency
declaration).
To be eligible for funding under EDA's CARES Act Recovery Assistance, applicants must explain
clearly in their application how the proposed project would "prevent, prepare for, and respond to
coronavirus" or respond to "economic injury as a result of coronavirus." This explanation is required to
assist reviewers in understanding how a proposed project aligns with the goals of EDA's CARES Act
Recovery Assistance. For example, if Smith County has experienced significant small business closures
as a result of the pandemic, Smith County must demonstrate how the project addresses small business
recovery and resilience priorities and objectives established under a Comprehensive Economic
Development Strategy (CEDS) or other strategy acceptable to EDA (see below for information on
strategy requirements). Projects that consider economic recovery in general must address the direct
consequences of the coronavirus pandemic itself and how the project will contribute the community's'
recovery and resiliency. The extent to which a proposed project responds to needs caused by the
coronavirus pandemic is one factor that EDA will consider when evaluating applications for
funding.
Cost Sharing or Matching
Section C.2. of the FY20 PWEAA NOFO (starting on pg. 11) sets out the cost sharing requirements for
EDA projects. For EDA's CARES Act Recovery Assistance, given the extent of the economic impact and
in accordance with the agency's statutory authority under Section 703 of the Public Works and Economic
Development Act of 1965 (PWEDA) (42 U.S.C. § 3233), EDA generally expects to fund at least 80%,
and up to 100%, of eligible project costs. In determining whether to fund a project's Federal share above
80%, EDA's Grants Officers in the applicable Regional Office will consider on a case -by -case basis
whether the circumstances of the proposed project warrant a Federal share in excess of 80%, including
whether the applicant has exhausted its effective taxing or borrowing capacity, the extent of the impact of
the coronavirus pandemic on the region, or whether the region meets other thresholds for elevated need
based on the relative economic distress of the region. Additionally, EDA may establish a maximum
investment rate of up to 100% for projects of Indian Tribes. Any portion of the costs for the EDA scope
of work funded below 100% must be borne by the recipient or provided to the recipient by a third party as
a contribution for the purposes of and subject to the terms of the award.
The applicant is responsible for demonstrating to EDA that a grant rate above 80% is justified by
providing statistics and other appropriate information on the nature and level of economic distress in the
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region, including information regarding other recovery -related needs facing the region and the level of
resources available to address those needs.
Comprehensive Economic Development Strategy CEDSLquirements
Except for a "Strategy Grant" to develop, update, or refine a CEDS, each project must be consistent with
the region's current CEDS or equivalent EDA-accepted regional economic development strategy that
meets EDA's CEDS or strategy requirements. Please see Section A.3. of the FY20 PWEAA NOFO
(starting on pg. 5) for more information on CEDS requirements. In addition, in accordance with
13 CFR § 303.7(c)(1), in certain circumstances EDA may accept a non-EDA-funded CEDS that does not
contain all the elements EDA requires of a CEDS.S
Application Information, Review and Selection Process, and Link to FY20 PWEAA NOFO
Applications are accepted on a rolling basis. Unless otherwise directed by EDA, all applicants for
CARES Act Recovery Assistance must follow instructions included within the FY20 PWEAA NOFO,
which can be found on:
hops://www.grants.gov/web/grants/view-opportuni ..h� tml?oppId=321695. As necessary, each EDA
Regional Office will periodically convene investment review committees (IRCs) that consist of at least
three EDA staff members. After EDA determines an application is complete, it will be reviewed by the
IRC, which will make a recommendation to the Grants Officer regarding funding.6
Along with other controlling law, EDA's CARES Act Recovery Assistance awards will be governed by
the Uniform Administrative Requirements, Cost Principles, and Audit Requirements as set forth in
2 C.F.R. part 200. For additional information, please contact the EDA representative for your region who
can be found at https://www.eda.gov/contact/. Applicants should note that the Office of Management and
Budget (OMB) has provided flexibility with respect to System of Award Management (SAM) registration
at the time of application; however, at the time of award, the requirements of 2 C.F.R. § 200.205, Federal
awarding agency review of risk posed by applicants, will continue to apply, including the requirement for
SAM registration. In addition, current registrants in SAM with active registrations that expire before May
16, 2020 will be afforded an automatic one-time extension of 60 days.
Instructions for Applicants:
- Download the FY20 PWEAA Notice of Funding Opportunity (NOFO) and application package from
h!Ws://www. rg ants.gov/web/grants/view-opportuni , .ht�ppId=321695.
- In Form ED-900, section B.3.b., include a description of the economic impacts in the region from the
coronavirus pandemic and describe how the proposed project scope of work will respond to those impacts
and support pandemic recovery and resilience efforts. Applicants may also provide a separate narrative
statement, not to exceed one page in length, of the economic impacts in the region from the coronavirus
pandemic and how the proposed project scope of work responds to those impacts.
- Additionally, in Form ED-900, section B.6, explain how the proposed project would meet EDA's
Recovery and Resilience investment priority, which all CARES Act Recovery Assistance projects are
expected to meet. You may also explain in this space how the proposed projects will meet any of EDA's
other investment priorities.
5 In doing so, EDA shall consider the circumstances surrounding the application for Investment Assistance,
including emergencies or natural disasters and the fulfillment of the requirements of section 302 of PWEDA.
6 See 13 C.F.R. § 302.2 ("When non -statutory EDA administrative or procedural conditions for Investment
Assistance awards under PWEDA cannot be met by an Eligible Applicant as the result of a disaster, EDA may
waive such conditions.").
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