Submitted by: Patrick A. Paschall
Submitting Department: Finance
Agenda Section: Action
Item Title:
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Small Business Emergency Relief Program Funding Increase
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Suggested Action:
recommendation
*Prior to this motion being read and acted upon, the Council must move to untable the motion.*
I move that the Mayor and Council allocate and authorize the expenditure of an additional $500,000 for the Small Business Emergency Relief program using American Rescue Plan Act funds, bringing the total allocation for Small Business Relief Programs under ARPA to $1,500,000.
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Summary Background:
This item was tabled on November 7, 2022, with the intention to bring it back for action on November 21, 2022. The item did not come back for action on November 21 as staff was still responding to questions from Council. These questions have been resolved and item is now returning for action on December 5, 2022. The summary background has been updated below.
On June 6, 2022 the City Council authorized the establishment of a Small Business Emergency Relief program to provide financial assistance to Hyattsville small businesses that experienced financial harm during the Covid-19 pandemic. The fund began with $900,000 dedicated to providing emergency relief payments to small businesses, with a plan to regularly review utilization and give the Council an opportunity to increase funding for this program if utilization warrants additional funding.
The program has been very successful. There are more than 500 licensed businesses in Hyattsville, with about half of them potentially eligible for this emergency relief program.
To date, we have reviewed all applications, and awarded $825,400 in emergency relief grants to small businesses. An additional six applications are on hold pending receipt of further information from the applicant.
This program is on-track to soon exceed the $900,000 allocation, at which time applicants will be put on a waiting list pending approval of additional funding from the Council. If additional funding is not allocated, the program will close after exhausting the $900,000 allocation.
Next Steps:
Staff will continue to process applications, conduct outreach, and provide regular updates to Council about program utilization.
Fiscal Impact:
An additional $500,000 will be added to the existing $1,000,000 allocation for Small Business Relief Programs, paid for using American Rescue Plan Act funds.
City Administrator Comments:
Recommend Approval
Community Engagement:
An extensive community outreach process has begun, and staff continue to conduct directed outreach to small businesses to invite them to apply for the program.
Strategic Goals:
Goal 2 - Ensure the Long-Term Economic Viability of the City
Legal Review Required?
N/A