Subject:
Title
Consider adopting a resolution approving grants to businesses under the Harrisonburg Business Recovery Grant program developed by the City's Economic Development Department and approved by City Council
Body
Presented By: Chris Brown, Secretary of EDA and City Attorney
Recommendation and Review
the City has received 9.2 million dollars under the federal CARES Act. Localities are allowed to use the CARES Act funds for COVID-19 related costs arising between March 1, 2020 and December 30, 2020. The CARES Act specifically permits localities to use CARES Act funds to assist businesses which have been adversely affected by the COVID-19 pandemic thru grants and other assistance.
On August 2, 2020, City Council approved a spending plan for a portion of the CARES Act funds. That spending plan included $750,000 appropriated for assistance to local businesses through a Harrisonburg Business Recovery Grant program developed and administered by the Harrisonburg Department of Economic Development. The program is designed to provide some economic relief to small businesses located in the City. You can find the details of the program in the first couple of pages of the CARES Act application pdf attached to this email. Generally, under the program an applicant must be located in the City, have between 1 and 100 full-time employees, have between $25,000 to $5 million in gross revenue, and demonstrate a 25% loss of revenue due to COVID-19. Grant funds can be used for a variety of business purposes but must be spent by the end of December. Grant amounts are up to $10,000 and are based on the number of employees of the applicant.
The City's Department of Economic Development has received, reviewed, and approved 79 business grant applications. The EDA has no responsibility to review the applications. The list of businesses to receive grants and the amount of those grants is found on the last two pages of the Resolution pdf attached. You will note that t...
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