SUBJECT
Title
AMENDMENT TO SAN DIEGO COUNTY SMALL BUSINESS STIMULUS PROGRAM (DISTRICTS: ALL)
Body
OVERVIEW
On May 19 (28), July 7 (12), August 4 (3), and October 13 (13), 2020, the Board of Supervisors (“Board”) approved a total of $27.5 million of CARES Act Coronavirus Relief Fund funds for economic stimulus grants for restaurants and small businesses. On November 25, 2020 (1), the Board approved an additional $20 million from the County of San Diego (“County”) General Fund to assist businesses most impacted by the State’s highest tier restrictions. The Board continued to prioritize stimulus grants for small businesses. On February 9, 2021 (9), the Board approved the immediate development of a third round of the Small Business Stimulus Grant Program to deploy a minimum of $30 million in additional grants (a minimum of $6 million per district) and included a provision to limit the ability for small businesses to apply for this funding if it was in an incorporated city with an active small business stimulus grant program. On April 6, 2021 (5), the Board adopted Option 2 of the Small Business Grant Program that allocated $6 million to each District, with the following award criteria: 80% or $4.8 million district specific and 20% or $1.2 million based on Health Places Index (HPI) 4th Quartile; business sectors most affected by the pandemic; or a combination of HPI and business sectors. On June 8, 2021 (3), the American Rescue Plan Act (ARPA) framework was approved and appropriations to support the Small Business Stimulus Program were established and the application portal was launched on June 9, 2021.
Today’s recommendation requests the Board approve an amendment to the Small Business Stimulus Program guidelines to reflect the Board’s prior direction and to allow eligible businesses located in an incorporated city that had an active small business stimulus program in place when the application period for the June 8, 2021 final round of funding launched. Active programs are defined as one that was still accepting applications and awarding grant funds on June 9, 2021, when the application window opened.
RECOMMENDATION(S)
CHIEF ADMINISTRATIVE OFFICER
Approve the amendment to the Small Business Stimulus Program guidelines to reflect the Board’s prior direction and to remove the provision that eligible businesses must not be located in an incorporated city that has an active small business stimulus program as of the date the application window opens. For the purpose of this section, an active program is one that is still accepting applications and awarding grant funds.
EQUITY IMPACT STATEMENT
The COVID-19 pandemic has had a significant impact on the lives of individuals, businesses, and communities across San Diego County. Today’s action of allowing access to eligible businesses that are located in an incorporated city with active small business stimulus program will benefit a larger pool of applicants from the community. This expansion will support the most vulnerable demographic since a large number of small businesses are owned by minority business owners. This will also remove barriers, encourage participation, and provide opportunities for small businesses that traditionally have less working capital and business owners who are socially and economically disadvantaged.
FISCAL IMPACT
There is no fiscal impact associated with today’s action. There will be no change in net General Fund cost and no additional staff years.
BUSINESS IMPACT STATEMENT
If approved, these recommendations will have a positive impact on the small business community. The grants will go towards assisting businesses that have been affected by COVID-19. It will allow some businesses that were not previously eligible for the current Small Business Stimulus Program to now apply.
Details
ADVISORY BOARD STATEMENT
N/A
BACKGROUND
On May 19, 2020 (28), the San Diego County Board of Supervisors (“Board”) approved $17 million of the CARES Act Coronavirus Relief Fund (CRF) funds for economic stimulus for restaurants and small businesses. In San Diego, 98% of all businesses in San Diego County are small businesses. Of these, over 15,000 are food businesses. The current COVID-19 pandemic has led to a devastating economic impact across San Diego County. With the San Diego County Small Business Stimulus Program (“Program”), the funds will provide a grant to many local small businesses to get them open, keep them open, and help prevent more from going out of business. Eligible businesses will be businesses (non-profit and private for-profit) with fewer than 100 employees headquartered and operating in San Diego County. Financial assistance will be allocated to eligible, qualified small businesses and nonprofit entities with final award recommendations made by individual district offices based on the availability of funds, program guidelines, and the submission of all required information and supporting documentation. The funds may be used towards supporting public health and response activities associated with the COVID-19 pandemic. Additional funding for this round of the Program was approved on August 4 (3) and October 13 (13) for a total of $27.5 million for this first round of the program. Applications closed on October 16, 2020 for this round.
On November 25, 2020 (1), an additional $20 million from the County’s General Fund was approved for a second round of the Program. Eligibility criteria remained the same as the first round, and funds for this round was expended by early 2021.
On February 9, 2021 (9), the Board requested a third round of the Small Business Stimulus Grant Program to deploy a minimum of $30 million in additional grants to be distributed equally among the districts from the American Rescue Plan Act (ARPA) funds. It included a revised Program for eligible businesses with fewer than 20 employees headquartered and operating in San Diego County that were not located in an incorporated city that has an active small business stimulus program as of the date the application window opens. For the purpose of this section, an active program is one that is still accepting applications and awarding grant funds.
On April 6, 2021 (5), the Board adopted Option 2 of the Small Business Grant Program that to include the following award criteria: 80% or $4.8 million district specific and 20% or $1.2 million based on Health Places Index (HPI) 4th Quartile; business sectors most affected by the pandemic; or a combination of HPI and business sectors. Funds were appropriated for the Program on June 8, 2021 (3).
Since the initiation of the Program, the guidelines were amended on February 9, 2021 (9) to include a provision to limit the ability for small businesses to apply for this funding if it was in an incorporated city with an active small business stimulus grant program. In addition, on April 6, 2021 (5), the Board adopted Option 2 of the Small Business Grant Program that allocated $6 million to each District, with the following award criteria: 80% or $4.8 million district specific and 20% or $1.2 million based on Health Places Index (HPI) 4th Quartile; business sectors most affected by the pandemic; or a combination of HPI and business sectors. Since receipt of this feedback the Small Business Stimulus Program guidelines have been updated to reflect the allocation of award criteria (see Attachments A and B).
Today’s recommendation requests the Board approve an amendment to the Small Business Stimulus Program guidelines to reflect the Board’s prior direction and to allow eligible businesses located in an incorporated city that had an active small business stimulus program in place when the application period for the June 8, 2021 final round of funding launched. Active programs are defined as one that was still accepting applications and awarding grant funds on June 9, 2021, when the application window opened.
LINKAGE TO THE COUNTY OF SAN DIEGO STRATEGIC PLAN
Today’s action to amend the San Diego County Small Business Stimulus Program supports the Equity and Sustainability Strategic Initiative in the County of San Diego’s 2022-2027 Strategic Plan by providing resources to assist small businesses impacted by COVID-19.
Respectfully submitted,
HELEN N. ROBBINS-MEYER
Chief Administrative Officer
ATTACHMENT(S)
Attachment A: San Diego County Small Businesses Stimulus Grant Fund Program Guidelines Clean
Attachment B: San Diego County Small Businesses Stimulus Grant Fund Program Guidelines Strikeout