Agenda Date: 04/21/2020
Subject:
Title
Resolution 35-2020: Approving the establishment of the Littleton Business Recovery Grant Program to assist businesses recovering from the effects of the COVID-19 pandemic
Body
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Prepared by: |
Reid Betzing, City Attorney |
PURPOSE:
To create a municipal grant program to assist Littleton businesses recovering from the effects of the COVID-19 pandemic.
PRESENTATIONS:
Staff Presenter(s): Reid Betzing, City Attorney
Mark Relph, City Manager
Denise Stephens, Economic Development Director
Additional Presenter(s): N/A
SUMMARY:
City Council was presented with a proposal on the parameters for the establishment of a Littleton Business Recovery Grant Program to help aid local Littleton businesses struggling with the economic effects of the COVID-19 pandemic and the accompanying restrictions on business normalcy.
PRIOR ACTIONS OR DISCUSSIONS:
On April 14, 2020 city council directed staff to develop a business outreach plan to determine what assistance is needed, what applications have been made for federal assistance and what, if any, funds have been approved or received.
The Economic Development Department sent out a survey on Friday, April 17 to over 1,500 Littleton business contacts asking about their need and desire for a potential business recovery grant. Responses to the survey came in quickly with 173 businesses responding as of Monday, April 20.
Data from initial responses:
• 29 of the respondents were retail only businesses
• 51 were retail and service-based businesses
• 93 were service based businesses
• 163 of the 173 stated a Littleton Business Recovery Grant would help their business when allowed to reopen
• 50 of the businesses had applied for federal business assistance and were approved
• 31 of the businesses approved for federal business assistance (loans, etc.) have state they have received their money
Staff was also directed to provide information on what other cities are doing and provide an outline for potential City of Littleton business relief program. As of April 17, 2020, eighteen municipalities in the Denver/Metro area have launched business relief programs (see attached list of municipal programs).
ANALYSIS:
Staff Analysis
According to the April 15, 2020, Small Business Association (SBA) Press Release applicants can no longer apply for Economic Disaster Injury Loan Fund (EDIL) and the Paycheck Protection Program (PPP) as of this morning due to a 'lapse in appropriation'. US Chamber of Commerce has petitioned Congress to renew funding for the Economic Injury Disaster Loan (EIDL) programs and increase funding for the Paycheck Protection Program (PPP). The federal government is purportedly working close to replenishing the emergency fund for small businesses.
Notwithstanding the foregoing, according to the City’s survey results, 163 business owners indicated a Littleton Business Recovery Grant would help their business when allowed to reopen.
The purpose of this resolution will be to approve the establishment of the Littleton Business Recovery Grant Program to aid local Littleton businesses up to the amounts and availability set forth in the program as well as to the applicable and eligibility criteria set forth in the program based on the direction given by City Council at the April 21, 2020 study session.
Council Goal, Objective, and/or Guiding Principle
Financial sustainability and quality community.
Fiscal Impacts
TBD. The amount of the fiscal impact will be based on the direction that Council gives to staff as far as the funding pool at the study session on April 21, 2020. Funds used for the Littleton Business Recovery grant Program will cause a reduction of that amount from the general fund.
Alternatives
Not approve this resolution.
STAFF RECOMMENDATION:
This is a Council policy question, so staff does not take a position. However due to challenges with managing a loan program staff would recommend that if it were to proceed that the program proceed by way of grant which would not require repayment.
PROPOSED MOTION:
Proposed Motion
I move to approve Resolution 35-2020 approving the establishment of the Littleton Business Recovery Grant Program to assist businesses recovering from the effects of the COVID-19 pandemic