Submitted By
Tammie Grossman, Director, Development Customer Services
Reviewed By
AMZ
Agenda Item Title
Title
A Resolution Authorizing the Creation of an Oak Park Business and Non-Profit Coronavirus Recovery (BNPCR) Grant Program Using American Rescue Plan Act Funding in an Amount Not to Exceed $550,000 and Approving Guidelines for the Program
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Overview
Overview
On May 24, 2021 the Village Manager presented a plan for use of the American Rescue Plan Act (ARPA) funds. As part of that presentation, there was a recommendation for immediate release of a portion of the funds for various services and expenses in FY 21. These services and expenses included lost revenues, pandemic expenses, essential worker compensation, food insecurities & rental assistance and local businesses recovery. On July 6, 2021, Village staff presented a recommendation to the Village Board to provide additional funding to Oak Park small businesses and non-profits in an amount not to exceed $550,000.00 from the Village’s American Rescue Plan Act (ARPA) funds. The proposed Oak Park Business and Non-Profit Coronavirus Recovery (BNPCR) Grant Program will seek to assist small businesses and non-profit 501(c)(3) organizations as they recover from the financial hardship resulting from the Covid-19 public health emergency. This item is a follow-up to that conversation.
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Recommendation
Recommendation
Approve the Resolution
Fiscal Impact
Under the American Rescue Plan Coronavirus State and Local Fiscal Recovery Funds, the Village of Oak Park’s allotment is $38,984,402.00, of which, $19,492,201 has already been received.
On May 24, 2021, the Village Manager recommended various immediate needs in FY 21, this included ongoing emergency aide to individual residents in categories such as business recovery assistance.
The Village provided an initial $550,000 for business loans using the Community Development Block Grant-Coronavirus (CDBG-CV) relief funds.
On July 6, 2021, staff presented a plan for the funding to small business community. The Village would use $550,000 in American Rescue Plan (ARPA) funds to support Oak Park small businesses and non-profits to help mitigate the financial hardship resulting from the Covid-19 public health emergency.
On August 2, 2021, the Village Board approved funds in the amount of 14,079,820 for lost revenues in FY 20-FY 21.
Background
The proposed Oak Park Business and Non-Profit Coronavirus (BNPCR) Grant Program is designed to assist Oak Park small businesses in covering past-due rent and/or mortgage payments, as well as assisting small businesses and 501(c)(3) non-profit organizations with other Covid-19 related operating costs. The federal governments American Rescue Plan Act (ARPA) funding is allowing local governments, like Oak Park, to assist small businesses and non-profits to help mitigate the financial hardship resulting from the Covid-19 public health emergency.
Using Community Development Block Grant - Coronavirus (CDBG-CV) relief funds, the Village provided $550,000 for the creation of the Business Assistance Loan Program. To date all but approximately $60,000 has been awarded to local businesses. See attached list of recipients. Under the CDBG rules, the funds had to be used for the creation or retention of an income eligible worker for at least 3 months per $5000 provided. As long as the business meets that threshold the loan is forgivable. One of our most frequent comments on this program was the paperwork required by the CDBG program rules and the linkage to an income eligible worker. Additionally, staff received comments that the $2,000,000 in annual average gross business receipts was too low. Since ARPA funds are more flexible than CDBG-CV funds, staff recommends removal of the income eligible worker requirement and increasing the gross sales to $3,000,000. Based on our review of the denied applications, we believe the program as referenced below would expand the businesses eligible for local assistance. Additionally, we spoke with building owners who state that they still have businesses that are behind in rental payments.
To help continue supporting Oak Park small businesses and 501(c)(3) non-profit organizations, the proposed Business, and Non-Profit Coronavirus Recovery Grant Program would utilize $550,000 in the federal American Rescue Plan Act funding. Staff is recommending expanding the Business Assistance Loan Program and that the program's resources be distributed as outlined below.
1. The proposed grant program would make $300,000 available to assist small, licensed Oak Park businesses in paying-off past-due rent or mortgage payments. The BNPCR Grant program would allow for up-to $5,000 per licensed, small Oak Park business, with less than $3,000,000 in annual average gross business receipts, for utilization to pay past-due rent to a landlord or mortgage payments to a mortgage holder. NOTE: $300,000 in grant funding could result in at least 60 Oak Park small businesses being assisted.
2. The proposed grant program would make $150,000 available to assist small, licensed Oak Park businesses by reimbursing said businesses for costs related to PPE and safety equipment installation expenses that they have incurred since March 2020. The BNPCR Grant Program would allow-for up-to $2,500 per licensed, small Oak Park business, with less than $3,000,000 in annual average gross business receipts, for reimbursement of costs incurred purchasing PPE and safety equipment installation related to the Covid-19 public health emergency. NOTE: $150,000 in grant funding could result in at least 60 Oak Park businesses being assisted.
3. The proposed grant program would make $100,000 available to assist Oak Park non-profit organizations. The BNPCR Grant Program would allow-for up-to $2,500 per non-profit organization for reimbursement of costs incurred purchasing PPE and safety equipment installation related to the Covid-19 public health emergency. NOTE: $100,000 in grant funding could result in at least 40 Oak Park 501(c)(3) non-profit organizations being assisted.
To be eligible, both businesses and non-profit organizations would need to fill out a BNPCR Grant Program application for consideration by Village staff. As a part of their application, successful BNPCR applicants will need to provide the following:
1. Attest that they qualify for said grant program;
2. Provide copies of receipts for PPE and/or safety equipment installation expenses, all incurred since March 2020 forward; and
3. (Business Only) - Provide a signed letter from their landlord or mortgage holder that a past-due rent or mortgage payment (Post March 2020) exists and what the amount of said past-due mortgage or rent is up-to or exceeding $5,000.
Participation in the grant program will require the completion of the entire application form. BNPCR funds would not be available for utilization to pay payroll expenses. In addition, since the grant program is designed to assist small businesses, chains with five or more locations, are not eligible. Still further, only 5019(c)(3) non-profits are eligible.
If approved, information about the new grant program would be distributed to Oak Park businesses and non-profit organizations, and said information would also be available on the Village’s website. As with similar grant/loan programs, the individual grants are contingent upon the availability of funds. Grant applications will be considered on a first-come, first-served basis.
Alternatives
N/A
Previous Board Action
On July 6, 2021, the Village Board had a presentation on the ARPA eligible uses.
Citizen Advisory Commission Action
Village staff presented the proposed Oak Park Business and Non-Profit Coronavirus Recovery (BNPCR) Grant Program to the Business Association Council (Council) at their monthly meeting on July 28, 2021. Representatives from the Oak Park River Forest Chamber, Oak Park Economic Development Corporation, Downtown Oak Park, Madison Street, Hemingway District and the Arts District attended the meeting. The Council was supportive of the proposed program and urged the Village Board’s approval. Additionally, staff sent the guidelines to other business districts not in attendance at the July meeting but who regularly attended normally and we did not receive any negative feedback about the program.
Anticipated Future Actions/Commitments
N/A
Intergovernmental Cooperation Opportunities
N/A