HomeMy WebLinkAboutAgenda Report - May 19, 2021 C-25ca
AGENDA ITEM 5
CITY OF LODI
COUNCIL COMMUNICATION
TM
AGENDA TITLE: Adopt a Resolution Approving the Community Development Department
Updated Small Business Assistance Program Plan Supported by American
Rescue Plan Act Funds
MEETING DATE: May 19, 2021
PREPARED BY: Community Development Director
RECOMMENDED ACTION: Adopt a resolution approving the Community Development
Department updated Small Business Assistance Program plan
supported by American Rescue Plan Act Funds.
BACKGROUND INFORMATION: A COVID-19 Needs Assessment was conducted from October
12 to October 30, 2020, by consultant staff who reached out for
feedback from thirty community non -profits and government
agencies and surveyed the Lodi business community. Based on this need assessment of the Lodi
Business Community, staff determined that a Small Business Assistance (SBA) program would
greatly benefit Lodi's economy during the COVID-19 pandemic. Two activities operated under this
program, SBA for Urgent Needs and SBA for Low -/Moderate -Income (LMI) Benefit.
The Community Development Department received an overwhelming response of 68 applications
from local small businesses of which 61 fully completed their applications and were deemed eligible.
With the initial available funding, the City was able to award grants to the 24 top scoring applications
in the two activities identified. Some applicants were not awarded their full request due to funding
limitations and there are currently 37 eligible applications that remain unfunded.
With the passing of the American Rescue Plan Act of 2021, which was signed, into law on March 11,
2021, additional funding has been made available to the City. On April 7, 2021, staff received direction
from the City Council that additional funding could be allocated to the SBA program ($600,000). On
May 5, 2021, staff received updated direction that the SBA program would be allocated only
$500,000, a reduction of $100,000.
With the reduction in available funding, staff requested to come back with a plan on how to distribute
the remaining funds. Staff is requesting that the six underfunded applications be made whole
($14,664), and award 22 additional SBA applications based on scoring rank be funded at their
requested amount ($202,520). Additionally, as community based organizations (CBO) provide a
significant benefit to the community, staff request applications be re -opened for CBO's for new awards
($222,816), and the remainder funding would go towards the administration of the program ($60,000).
Staff determined what applications would not be funded by utilizing the scoring provided through the
same SBA grant rubric. Based upon available resources, any applications that scored 10 and under
were removed from the list of those applications to be funded.
APPROVED:` w
Step en Schw , City Manager
SBA Update
May 19, 2021
Page 2 of 2
Awarded Applications
Underfunded Small Business Assistance
Grants
Unfunded Small Business Assistance Grants
to be Funded
** New** Competitive Community Based
Organization Grants
Administration
$215,136 24
$ 14,664 6
1 $ 202,520 22
$ 222,816 Unknown
$ 60,000 N/A
7 (Incomplete)
N/A
15
N/A
N/A
Total: $ 500,000
Staff recommends that City Council adopt a resolution to approve the Community Development
Departments updated Small Business Assistance Program plan as noted in the table above and
supported by American Rescue Plan Act funds.
FISCAL IMPACT: The American Rescue Plan Act will provide $500,000 in funds to
support Small Business Assistance Grants and Community Based
Organization Grants
FUNDING AVAILABLE:
Signature: � %(�
Email: akeys@lodi.gov
Funding will come exclusively from the Federal American Rescue Plan
Act funds. There is no impact to general fund operations from this
allocation,
Andrew Keys
Andrew Keys
Deputy City Manager/Internal Services Director
John. Della Monica, Jr.
Com unity Development Dire for
RESOLUTION NO. 2021-148
A RESOLUTION OF THE LODI CITY COUNCIL APPROVING THE COMMUNITY
DEVELOPMENT DEPARTMENT UPDATED SMALL BUSINESS ASSISTANCE
PROGRAM PLAN SUPPORTED BY AMERICAN RESCUE PLAN ACT FUNDS
WHEREAS, the City has been awarded $796,408 from the Coronavirus Aid, Relief, and
Economic Security (CARES) Act Community Development Block Grant ("CDBG-CV") funding
from the US Housing and Urban Development (HUD); and
WHEREAS, the City developed the Small Business Assistance Program (SBA), a
competitive grant process; and
WHEREAS, the City was only able to award 24 of the completed 61 SBA applications
due to funding limitations; and
WHEREAS, the federal American Rescue Plan Act of 2021 was signed into law on
March 11, 2021; and
WHEREAS, on May 5, 2021, City Council allocated $500,000 to the Small Business
Assistance Program supported by American Rescue Plan Act funds; and
WHEREAS, staff developed a plan to make whole the six underfunded applications
($14,664), and award 22 additional SBA applications based on scoring rank be funded at their
requested amount ($202,520). As community-based organizations (CBOs) provide a significant
benefit to the community, staff request applications be re -opened for CBOs for new awards
($222,816), and the remaining funding would go towards the administration of the program
($60,000); and
WHEREAS, staff recommends the City Council approve the Community Development
Department updated Small Business Assistance Program plan supported by American Rescue
Plan Act funds.
NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby approve
the Community Development Department updated Small Business Assistance Program plan
supported by American Rescue Plan Act Funds.
Dated: May 19, 2021
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I hereby certify that Resolution No. 2021-148 was passed and adopted by the City
Council of the City of Lodi in a regular meeting held May 19, 2021, by the following vote:
AYES: COUNCIL MEMBERS — Chandler, Hothi, Khan, Kuehne, and
Mayor Nakanishi
NOES: COUNCIL MEMBERS — None
ABSENT: COUNCIL MEMBERS — None
ABSTAIN: COUNCIL MEMBERS — None
JENNIF CUSMIR
City Cler
2021-148