HomeMy WebLinkAboutPED 2020-08-03 Item 1A - COVID-19 - King County Coronavirus Relief Fund Grant for $31,965City of Tukwila
Allan Ekberg, Mayor
INFORMATIONAL MEMORANDUM
TO: Planning and Economic Development Committee
FROM: Derek Speck, Economic Development Administrator
CC: Mayor Ekberg
DATE: July 27, 2020
SUBJECT: Business Recovery Update: Grants
ISSUE
Staff requests Committee approval to use a $31,965 grant from King County's Coronavirus
Relief Fund.
BACKGROUND
King County allocated $1.95 million to cities within the County (except Seattle) to provide
economic relief and support to small and underserved businesses. On June 19, the City of
Tukwila was notified that we are eligible to receive $31,965. A copy of the County's objectives
and eligible expenditures is attached.
Eligible uses and examples of expenditures are described on page 2 of the attachment titled
King County Corona Virus Relief Fund — Subrecipient Grant Agreement. Potential uses of these
funds was briefly discussed at the Committee's meetings on July 6 and July 20. At the July 20
meeting the Committee focused on two options:
(1) Issuing small grants directly to businesses.
(2) Marketing Tukwila's International Boulevard through a program that includes small
business grants in combination street pole banners or flags representing the United
States and the main countries of origin for our residents with a social media component
to attract visitors to the area.
Staff has asked the County if street pole banners or flags would be an eligible expense under
their grant criteria. They are looking into it and we hope to have their answer in time for the
PED meeting.
DISCUSSION
Staff recommends using the funds to issue grants directly to small businesses. We recommend
the following approximate allocation:
Direct grants $26,000
Grant administrator $ 3,000
Interpretation and assistance $ 2,000
PPE 965
Total $31,965
INFORMATIONAL MEMO
Page 2
Grants would be up to $1,000 each and would reimburse businesses for business interruption
costs not previously satisfied by any other funding source. The grant administrator would be an
organization, such as Evergreen Business Capital, which is a lender certified by the US Small
Business Administration and a mission to provide financing to underserved communities. We
recommend reserving some funds for interpretation and assistance. This could be used to
translate documents, one-on-one interpretation, or small contracts with local non -profits to
provide technical assistance in our top languages to help businesses fill out the application.
Under this grant the City could purchase and give PPE to eligible businesses. That may be a
useful way to introduce the program and build relationships with very small businesses.
Due to the very limited funds, it would be unfortunate to set eligibility criteria so wide as to have
many applications that would be rejected due to lack of funds. Also, due to the small size of the
grants, it is important for the application process to be a simple as possible for the businesses,
the grant administrator, and the City. Thus, in addition to other basic criteria, staff recommends
the following key eligibility criteria:
a) Businesses with fewer than 10 FTEs
b) Located within the Tukwila International Boulevard District boundary
c) Occupies a brick and mortar location (versus purely online)
d) Gross annual revenues under $1 million
e) Properly paid the City business license for past two years
If we receive more applications than available funding, we recommend the following ranking
criteria:
a) Historically underserved business owner
b) Financial impact due to COVID-19 pandemic
c) Required to close under Washington State's Stay Home order
d) Required to reduce capacity and operations under Washington's Safe Start order
e) Serves key community need of child care
Staff is available to discuss variations of the above program or other alternatives.
FINANCIAL IMPACT
No budget changes are requested at this time; however, we would need an amendment to the
2020 budget to reflect the grant revenue and matching expenses of up to $31,965.
RECOMMENDATION
Authorize staff to implement the small business grant program as described.
ATTACHMENTS
King County Corona Virus Relief Fund — Attachment C Scope of Work
https://tukwilawa.sharepoint.com/sites/mayorsoffice/cc/Council Agenda Items/Mayor's Office/PED, August 3/King County Coronavirus Relief Fund/PED 2020-8-3
2 Infomemo Business Recovery Grants.doc
1. King County
King County Coronavirus Relief Fund
Subrecipient Grant Agreement
Economic Development for Cities
ATTACHMENT C - PROGRAM SCOPE OF WORK
1. Introduction
On May 12, 2020, King County Council passed Ordinance 19103, which allocated a total of $1.95
million for a grant program to support King County cities' economic relief and recovery activities in
response to the COVID-19 public health emergency. This grant program is intended to help
alleviate the significant adverse economic impact of COVID-19 on incorporated municipalities of
King County. The funds will be distributed to every city of King County, except for the city of
Seattle, based on per capita population with a minimum grant of $10,000.
Note: With the grant minimum set at $10,000, some of the calculated city allocations will be
adjusted slightly to keep the total programmatic allocation at $1.95 million.
2. Program Objectives/Outcomes
King County is seeking to achieve the following outcomes with this grant program:
a. Small businesses receive the support they need to overcome disruptions caused by COVID-19
b. Small businesses receive the support they need to safely re -opening while adhering to local
public health guidance and operating guidelines designed to protect employees and
customers
c. Support underserved and other priority small businesses that have not been able to access
other resources*
d. Help small businesses restart quickly, recover from the impacts of the pandemic, and
contribute to the overall economic stability of the community (i.e., revenues and jobs)
While King County empowers the subrecipient to define 'small business', cities should prioritize
grant funds to businesses that meet a reasonable standard of 'small' and have experienced acute
business interruption or require immediate assistance to adapt their services to adhere to public
health guidance and considerations.
* For the purposes of this grant program, King County considers historically underserved business
owners to be those from Black, Native, people of color, immigrant, refugee, and LGBTQ
communities.
3. Eligible Expenditures
The grant funds must be used for cities' economic relief and development activities in response to
COVID-19. The funds should only be used for costs that were not accounted for in the city's 2019
fiscal year budget and must comply with all federal requirements set for the Treasury's
Coronavirus Relief Fund (detailed in Attachment A "Federal Terms"). Expenditures must be
incurred in the period from March 1, 2020, through December 30, 2020, and must be recorded and
documented using the generally accepted accounting principles and the provisions of Title 2 CFR
Part 200 — Uniform Administrative Requirements, Cost Principles, and Audit Requirements.
Attachment C — Scope of Work
Page 1 of 2
3
LQKing County
Expenditures may fall in any of the following broad categories:
❑ City internal operational expenditures
❑ City direct expenditures for small businesses
❑ Passthrough grants to small businesses to reimburse the costs of business interruption
caused by required closures.
The following list provides some examples of eligible expenditures:
• Materials to give out to businesses to facilitate safe opening (e.g., PPE, sanitation supplies,
plexiglass barriers, markers, signage)
• Rental of materials to increase the outdoor seating capacity for restaurant businesses
• Marketing materials for businesses
• Passthrough grants to businesses to reimburse business interruption costs not previously
satisfied by any other funding source
• Technical assistance to businesses (consulting services)
• Temporary staff hired to engage with businesses
• Consulting Services (business surveys, training, city marketing materials, etc.)
4. Grant Documentation & Reporting
EXIBIT #
Form/Report
Short Description
Interval
1
Pre -award: risk
Short survey to understand City's
With the intake
assessment questionnaire
administrative capacity
form preceding
agreement signing
2
Federal Funding
• Only for entities receiving grant funds in
With the signed
Accountability and
excess of $25,000.
agreement
Transparency Act (FFATA)
. King County will use this information to
(if the grant amount
Data Collection Form
report to www.FSRS.gov within 30 days
is in excess of
of the award.
$25,000)
• Template attached.
3
Bi-monthly performance
Summary expenditure report by eligible
Bi-monthly
report
activity
following
agreement signing
4
An expenditure report
A standard report generated from the
Within 30 days of
detailing all expenditures
city's official accounting system or
final payment
up to the grant amount
sufficient documentation to demonstrate
utilizing grant funds
grant expenditures, payee, and date of
transaction
5
Direct Grant &
A standard report that outlines all
Within 30 days of
Beneficiaries Report
businesses who received a direct grant
final payment
payment from the city, detailing business
utilizing grant funds
information and key demographic
indicators
Attachment C — Scope of Work
12
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