STRATEGIC PRIORITY: Economic and Neighborhood Vitality
AGENDA DATE: August 12, 2020
COUNCIL DISTRICT(S): All
DEPARTMENT: Office of Economic Development
EXECUTIVE: Dr. Eric A. Johnson
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SUBJECT
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Authorize (1) an amendment to the Small Business Continuity Fund Program; (2) a first amendment to the subrecipient agreement between the City of Dallas and Dallas Development Fund (DDF) in accordance with the amended Program Statement; and (3) the execution of a subrecipient agreement with DDF to administer $2,000,000.00 in Coronavirus Relief Funds funding appropriated to the SBCF Program - Not to exceed $2,000,000.00 - Financing: U.S. Department of Treasury Coronavirus Relief Fund
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BACKGROUND
On April 22, 2020, City Council authorized the creation of the SBCF Program to provide grant and loan funding to Dallas small businesses impacted by COVID-19 pursuant to Resolution No. 20-0646. The program was initially funded through Community Development Block Grant (CDBG) funds provided by the CARES Act, and subject to CDBG program regulations. An additional $2 million, non-CDBG funding provided by the CARES Act has been allocated to this program.
Non-CDBG funds provided through Coronavirus Relief Funds (CRF) are more flexible and as a result, adhering to CDBG program requirements for non-CDBG funds creates an unnecessary administrative burden. The revised program statement removes the CDBG eligibility requirements for those SBCF awards not funded by CDBG funding and removes the requirement that businesses have at least 51 percent low to moderate income (LMI) employees as it is not required under CDBG regulations. Businesses are still required to create or retain one job and remain in business for at least six months for all grant awards. Businesses with 50 or fewer employees must also still show that they employ or employed LMI workers.
Additionally, the contract between the City of Dallas an...
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