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, ...
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