Title
Recommended Uses for American Rescue Plan Act Funds - Additional Small Business Ecosystem Partner Support
Action
Action:
A. Approve funding in the amount of $237,500 from American Rescue Plan Act Funds to University City Partners to serve small businesses impacted by COVID-19 through the Small Business Ecosystem Partner Program, and
B. Authorize the City Manager, or his designee, to negotiate and execute any necessary contracts and agreements related to these recommendations.
Body
Staff Resource(s):
Tracy Dodson, City Manager’s Office
Christi Floyd, Economic Development
Explanation
§ In 2020, City Council awarded $2 million in CARES Act funding for the Small Business Ecosystem Partner grant program that provided up to $250,000 in grants to eligible partners supporting local small businesses. Applicants had to be nonprofit, chambers of commerce, government, or academic organizations.
§ The 2020 Small Business Ecosystem Partner Program was a competitive grant process. A six-person team of city staff from various departments (excluding Economic Development) reviewed and scored the eligible applications.
§ Twenty eligible organizations submitted applications and 12 received funding.
§ Funding was distributed based on the review process. Applicants were ranked in order and provided with funding until the full $2 million was distributed.
§ Organizations receiving grant funds from this program in 2020 reported serving about 15,000 small, minority, and women-owned small businesses.
§ Subsequent review of this program revealed an ranking error that reduced University City Partners’ score. This error resulted in the organization not receiving funding to participate in the program.
§ Despite this error, the intent and focus of the program were still achieved as the organizations that were funded provided assistance to minority-owned small businesses and supported local artists.
§ To remedy the ranking error and to support small businesses in University City, the city would like to fund the original request of $237,500 made by University City Partners.
§ Funding for the additional $237,500 would be allocated from unprogrammed ARPA (American Rescue Plan Act) funding since CARES Act funding has been expended.
Background
§ On March 11, 2021, in response to the COVID-19 public health emergency, President Biden signed the American Rescue Plan Act of 2021 (ARPA).
§ ARPA included the Coronavirus State and Local Fiscal Recovery Fund (SLFRF), which provided $130 billion in direct assistance for local governments to be used to mitigate the fiscal effects stemming from the COVID-19 public health emergency.
§ The SLFRF provides direct payments to metropolitan cities and counties; Charlotte was one of the 990 cities across the nation that met the criteria.
§ The U.S. Treasury Department is releasing SLFRF funding to local governments in two equal installments. Charlotte received its first installment of approximately $71 million in May 2021 and the second installment in May 2022.
§ Funds from the SLFRF may only be used to cover costs incurred by December 31, 2024, for the following purposes:
- To respond to the COVID-19 public health emergency or its negative economic impacts, including assistance to households, small businesses, and nonprofits, or aid to impacted industries such as tourism, travel, and hospitality;
- To respond to workers performing essential work during the COVID-19 public health emergency by providing premium pay to eligible city employees who are performing such essential work or by providing grants to eligible employers that have eligible workers who perform essential work;
- For the provision of government services to the extent of the reduction in revenue in the city’s budget due to the COVID-19 public health emergency relative to revenues collected in Fiscal Year 2019; and
- To make necessary investments in water, sewer, or broadband infrastructure.
Fiscal Note
Funding: American Rescue Plan Act (ARPA) Funds
Attachments
Attachment(s)
Partner Grant Program Description