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LTC 041-2022 Emergency Small Business Reimbursement Grant Program Update #3041-2022 MIAMI BEACH OFFICE OF THE CIT Y MANAGER NO . LTC# LETTER TO COMMISSION TO: FROM: Honorable Mayor Dan Gelb;&mbers of the City Commission Alina T. Hudak, City Mana\}\. l .l DATE: January 27, 2022 SUBJECT: Emergency Small Business Reimbursement Grant Program Update #3 The purpose of this Letter to Commission (L TC) is to provide an update regarding the status of the small business assistance grant programs funded through Community Development Block Grant -Coronavirus (CDBG-CV). The CDBG-CV funding was appropriated by the U.S. Department of Housing and Urban Development (HUD) to the City through the Office of Housing and Community Services, and allocated to the Economic Development Department as a subrecipient for this purpose . The principal goal of these small business assistance grant programs is to support and promote business longevity by retaining or creating jobs. Funding for small business assistance is necessary to provide support for existing businesses and to encourage the growth of businesses during the ongoing recovery phase. On May 13, 2020, via Resolution No . 2020-31256, the City Commission allocated $200,000 in CDBG-CV funds for small business assistance grants. The Economic Development Department developed the Small Business Assistance program application and completed a virtual lottery process in an effort to assist up to twenty (20) eligible small businesses adversely impacted by the COVID-19 pandemic, with up to $10,000 for reimbursement of eligible business expenses. Thereafter, on October 28 , 2020, when additional CDBG -CV funding became available to the City, the City Commission approved Resolution No. 2020-31471 , which provided $600 ,000 in grant funds to further assist small bus inesses. Under the Emergency Small Business Reimbursement Program, eligible small businesses and microenterprises have been encouraged to apply for grants of up to $20,000 as reimbursement for normal business expenses including, but not limited to, rent, mortgage, utilities, payroll, operating supplies, and COVID-19 related expenses. A total of $140,000 has been disbursed to fourteen (14) qualified businesses through the init ial Small Business Assistance Program, leaving a balance of $60,000 in available funding . Though the original strategy included funding six (6) additional businesses (for a total of twenty (20) businesses) for grants of up to $10,000, the Administration, via an amendment to the Memorandum of Understanding (MOU) between the Office of Housing and Community Services and the Economic Development Department, reallocated the remaining $60,000 from the CDBG-CV Small Business Assistance Program to the CDBG-CV Emergency Small Business Reimbursement Grant Program (the "Program"), to provide a total of $660,000. The amendment effectively closed out the application and evaluation process for the initial grant program. Pursuant to the amendment to the MOU, at least thirty (33) businesses may now receive assistance under the Program , which has been open and active as of January 6 , 2021 . 1 The Economic Development Department continues to market the Program online through various channels and via in person visits to businesses . As of January 25, 2022, the Department has approved twenty-six (26) businesses for the Program, totaling $520,000 in grant funding. Fourteen ( 14) approved small businesses will either retain or create a position for a Miami Beach resident whose household earns at or below 80% Area Median Income (AMI), while the remaining twelve (12) approved businesses are microenterprises . The Program is being administered and awarded on a first-come, first-qualified, first-served basis through an online application . Local businesses are encouraged to continue applying for the remaining $140,000 in funding, available for at least seven (7) e ligible businesses . Interested applicants can visit https://miamibeachfl.gosmart.org to review program guidelines and create a new profile and login to preview the application. The application will remain open until all funds are exhausted . For more information, please contact Rickelle Williams, Economic Development Director at rickellewilliams@miamibeachfl.gov. ()'1 ~~ f?cJRW/HS/LW/MR 2