STRATEGIC PRIORITY: Economic Development
AGENDA DATE: November 9, 2022
COUNCIL DISTRICT(S): All
DEPARTMENT: Small Business Center Department
EXECUTIVE: Kimberly Bizor Tolbert
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SUBJECT
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Authorize approval of a Program Statement supporting American Rescue Plan Act/Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) funding for the Small Business Assistance Program and the Non-Profit Assistance Program with the intent of providing financial support in the form of a grant for operational expenses, including, but not limited to expenses such as rent, utilities, staff salaries and benefits, product loss, and cleaning supplies incurred between March 3, 2021 and September 30, 2024, and resulting from COVID-19 and/or in response to needs caused by COVID-19 - Financing: No cost consideration to the City
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BACKGROUND
The Novel Coronavirus Disease (“COVID-19”) pandemic and its resulting economic impacts have put a strain on many local nonprofit organizations. The City has seen tremendous demand for community social services provided by local nonprofits. City of Dallas nonprofit organizations have experienced negative economic impacts or disproportionate impacts of the COVID-19 pandemic, including, but not limited to, increased service need in the community, and other financial hardships.
On September 22, 2021, City Council approved the Fiscal Year 2021-22 Budget, which authorized the appropriation of $355,426,891.00 from the American Rescue Plan Act in Local Fiscal Recovery Funds, including $16,000,000.00 to provide for City Council (districts) specific needs by Resolution No. 21-1590.
Small business eligible for assistance are those that experienced negative economic impacts or disproportionate impacts of the pandemic. To demonstrate need, applicants will be required to provide documents demonstrating negative economic impacts directly related to the COVID-19 pandemic for the period of March 3, 2021, through September 30, 2024. Such negative economic impacts could be due to an increase in a contract or patronage provided, an inability to meet payroll obligations, loss of revenue from sales or loss of contracts, increased costs due to COVID-19, or costs of new products designed to assist those disparately impacted by the pandemic and its economic effects. For Non- profit assistance, negative impacts could be due to an increase in services provided, an inability to hold fundraising events, loss of revenue from donations, increased costs due to COVID-19, or costs of new programming designed to assist those disparately impacted by the pandemic and its economic effects. Applicants that are located within Qualified Census Tracts, as defined by the U.S. Department of Housing and Urban Development (HUD) or other communities determined to be highly impacted by the pandemic as outlined in Treasury guidance for use of ARPA State and Local Fiscal Recovery Funds, will be presumed to be disproportionately impacted by the pandemic (Disproportionately Impacted small business and non-profits).
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On June 23, 2021, City Council authorized application for and acceptance of a direct allocation from the Coronavirus Local Fiscal Recovery Fund of the Treasury in the total amount of $355,426,891.00, by Resolution No. 21-1149.
On September 22, 2021, City Council approved the Fiscal Year 2021-22 Budget, which authorized the appropriation of $355,426,891.00 from the American Rescue Plan Act in Local Fiscal Recovery Funds, including $16,000,000.00 for relief to small businesses, nonprofits, or impacted industries based on established criteria, by Resolution No. 21-1590.
The Economic Development Committee will be briefed by memorandum regarding this matter on November 4, 2022. <https://cityofdallas.legistar.com/View.ashx?M=F&ID=11422163&GUID=B6DF1969-C589-493E-B534-0E7949DADA41>
FISCAL INFORMATION
No cost consideration to the City.