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Report regarding the consideration of a resolution appropriating $1,133,732 in grant funding from the U.S. Department of Commerce’s Economic Development Administration, through budget amendment number 22.054, towards services provided by Renaissance Entrepreneurship Center located at the Economic Advancement Center in South San Francisco, and authorizing the City Manager to execute the administration of the grant. (Ernesto Lucero, Economic Development Coordinator)
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RECOMMENDATION
Recommendation
Staff recommends that the City Council adopt a resolution:
1. Approving a total appropriation of $1,133,732 in grant funding from the U.S. Department of Commerce’s Economic Development Administration, through budget amendment number 22.054 to fund services provided by Renaissance Entrepreneurship Center located at the Economic Advancement Center in South San Francisco; and
2. Authorizing the City Manager to execute any agreements or documents pertaining to the administration of the grant funding.
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BACKGROUND
On August 4, 2021 staff applied for grant funding from the U.S. Department of Commerce’s Economic Development Administration (EDA) that would support small business technical assistance services offered by Renaissance Entrepreneurship Center (Renaissance) at the Economic Advancement Center (EAC) in South San Francisco.
The competitive grant derives from American Rescue Plan funds that were distributed to the EDA Economic Adjustment Assistance (EAA) Program.
On March 11, 2021, President Joseph R. Biden signed the American Rescue Plan into law. This legislation was designed to enable all Americans to respond to and recover from the impacts of COVID-19. Under the American Rescue Plan, EDA was allocated $3 billion in supplemental funding to assist communities nationwide in their efforts to build back better by accelerating the economic recovery from the coronavirus pandemic and building local economies that will be resilient to future economic shocks. With an emphasis on equity, EDA investments made under the American Rescue Plan directly benefit previously underserved communities impacted by COVID-19.
On February 17, 2022 the City was notified that the EDA had approved the full amount of the requested grant funds in the amount of $1,133,732 providing funding that will support two years of operations and services for small business and entrepreneurship support from Renaissance. (Attachment 1) is the EDA Award Letter received.
DISCUSSION
Renaissance is a current service provider for small business and entrepreneurship support under an approved contract with the City. Through the City contract, services are available to small businesses and entrepreneurs from South San Francisco. A subsequent contribution of $200,000 from San Mateo County expanded the services offered by Renaissance to North San Mateo County communities, which include Daly City, Pacifica, Colma, San Bruno, Millbrae, and Brisbane. The EDA grant will now ensure the services remain offered to all of North San Mateo County, and will be offered from the EAC in South San Francisco.
The funding supports 2 years of program operations at 80%, including a portion of lease and operating expenses for the EAC, annual contracts with Renaissance, as well as a portion of City staff time administering the grant. In total, the EDA grant consists of a total of $1,417,164, which includes $1,133,732 from the EDA, and $283,432 in matching funds from the City. The City matching funds were appropriated by the City Council on April 14, 2021 as part of the launch of services for the EAC.
The expansion of services will benefit low and moderate income, and previously underserved populations by providing technical assistance to emerging and small businesses in North San Mateo County. Programs offered by Renaissance at the EAC will include business training classes, technology workshops, and website development instruction. The grant funding is expected to create 372 jobs, retain 748 jobs, and generate $43.7 million in private investment.
CONCLUSION
This report provides the Council with a resolution for approval that would take action on the following items:
1. Approves a total appropriation of $1,133,732 in grant funding from the U.S. Department of Commerce’s Economic Development Administration, through budget amendment number 22.054 to fund services provided by Renaissance Entrepreneurship Center located at the Economic Advancement Center in South San Francisco; and
2. Authorizes the City Manager to execute any agreements or documents pertaining to the administration of the grant funding.
Attachments:
1. EDA Award Letter