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Report regarding a resolution accepting a $100,000 American Rescue Plan Act grant from San Mateo County for a new Small Business Post-Pandemic Recovery Grant Program for businesses in South San Francisco and appropriating the grant funds with Budget Amendment No. 24.002. (Ernesto Lucero, Economic Development Manager)
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RECOMMENDATION
Recommendation
Staff recommends City Council adopt a resolution accepting a $100,000 American Rescue Plan Act (ARPA) grant from San Mateo County for a new Small Business Post-Pandemic Recovery Grant Program for businesses in South San Francisco that continue to experience economic challenges from the COVID-19 pandemic. The resolution also authorizes the City Manager to finalize negotiating the grant agreement, execute the grant agreement, and carry out any additional administrative functions to implement the program as required under the agreement, as well as appropriates the grant funds with Budget Amendment No. 24.002.
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BACKGROUND
Throughout the pandemic and during economic recovery, it remains evident that many small businesses in South San Francisco and throughout San Mateo County face significant economic challenges to sustain their small businesses. Many continue to face economic hardships paying rent, payroll, operating expenses, or increasing revenue from sales. Many businesses also continue to need additional support in e-commerce sales and obtaining new customers.
Since early 2020, the City has focused heavily on supporting small businesses and unemployed residents. The City Small Business Relief Fund provided $730,000 in small forgivable loans of $10,000 to $15,000 utilizing Community Development Block Grant (CDBG) Funds. In addition, the City provided $2 million in seed funding towards the opening of the Economic Advancement Center and $260,000 towards the San Mateo County Strong Restaurant, Brewery & Winery Grant Program. And most recently, the City sponsored an $825,000 Façade and Tenant Improvement Grant Program giving priority to small businesses making upgrades to their businesses to become compliant with the Americans with Disabilities Act (ADA).
City staff have also worked collaboratively since early 2020 with San Mateo County to develop direct and tangible resources that support small businesses, such as outreach programs on federal and state grants, and micro grants for restaurants. Direct grant funding to South San Francisco has included a $200,000 contribution towards small business support services at the Economic Advancement Center, as well as the San Mateo County Strong Fund which supported small businesses with a total of $200,000. As San Mateo County continues to allocate State and Federal Recovery Funds, including ARPA Funds, $100,000 of grant funds is being offered to the Cities of San Mateo, San Bruno, and South San Francisco to provide small working capital grants for small business that continue to experience economic effects from the COVID-19 pandemic.
DISCUSSION
The Small Business Post-Pandemic Recovery Grant Program is designed to mitigate financial hardship and to help prepare COVID-impacted small retail and restaurant businesses to meet post-pandemic customer expectations through technical assistance trainings, consultations, and a grant program operated by the City of South San Francisco. Eligible impacted small businesses may use their grants to pay for past due rent, payroll, utilities, small equipment purchases to sustain operations, or other working capital expenses. The specific program guidelines will be brought back to Council in the coming months, as described below.
With the adoption of the resolution, the City Manager will be authorized to finalize negotiating a grant agreement with the County, execute a grant agreement with San Mateo County, and accept the $100,000 grant. The San Mateo County Board of Supervisors plan to approve the funding on July 11, 2023 and are requesting the three participating pilot cities adopt respective resolutions prior to their July meeting. The program must serve small businesses with working capital grants of no more than $5,000 each, meaning the funds would serve up to 20 small businesses. Grantees will also be required to participate in targeted technical assistance provided by the County and their contractors. Per the grant agreement, staff will return to City Council by the end of this summer to consider approval of program guidelines, with the grant program rolling out in late 2023/early 2024.
FISCAL IMPACT
While there will be no new impact to the General Fund associated with accepting this grant, there will be considerable staff time spent designing the grant program, documenting the program guidelines, administering the grant, and reporting the County on program performance. Additionally, depending on the implementation of the grant program later in the year, there may be some staff and/or consultant time incurred to assist in the administration of the grant program.
RELATIONSHIP TO THE STATEGIC PLAN
This report meets the City’s strategic planning goal #5, Economic Vitality.
CONCLUSION
Staff recommends City Council adopt a resolution accepting a $100,000 ARPA grant from San Mateo County for a new Small Business Post-Pandemic Recovery Grant Program for businesses in South San Francisco that continue to experience economic challenges from the COVID-19 pandemic. The resolution also authorizes the City Manager to finalize negotiating the grant agreement, execute the grant agreement, and carry out any additional administrative functions to implement the program as required under the agreement, as well as appropriates the grant funds with Budget Amendment No. 24.002.