Special Notice / Hearing: None__
Vote Required: Majority
To: Honorable Board of Supervisors
From: Michael P. Callagy, County Executive Officer
Justin W. Mates, Deputy County Executive
Subject: Small Business Post Pandemic Recovery Grant Program
RECOMMENDATION:
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Adopt a resolution:
A) Allocating $364,426 in American Rescue Plan Act (“ARPA”) funds for the Small Business Post Pandemic Recovery Program (“Program”); and
B) Authorizing the County Executive, or designee(s), to enter into an agreement with Good City Company (“Good City”) to provide technical assistance to COVID-impacted small businesses in connection with the Small Business Post Pandemic Recovery Program in an amount not to exceed $64,426 for a term ending June 30, 2024; and
C) Authorizing the County Executive, or designee(s), to enter into grant agreements with the City of South San Francisco, City of San Bruno, and City of San Mateo to implement grant programs for COVID-impacted small businesses in their respective cities, in coordination with the technical assistance provided by Good City, with each agreement in an amount not to exceed $100,000 ($300,000 in total) and a term ending June 30, 2024.
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BACKGROUND:
During the COVID-19 pandemic, many small retail and restaurant businesses in the County were closed for months and suffered substantial financial hardship. Many of those businesses have struggled to return to pre-pandemic levels of operation. Businesses in city downtown areas were among the most severely impacted by the pandemic because many residents have been slow to return to in-person dining and shopping.
To mitigate their financial hardship and attract and retain new and returning customers, many local small businesses need to modify their commercial spaces. The preference for outdoor dining, the ability to socially distance inside shops and restaurants, and the addition of interior and curbside pick-up space are all lasting impacts of the pandemic. Restaurants and retail shops unable to accommodate these new customer expectations are struggling to survive, potentially leaving empty storefronts in once vibrant downtowns.
DISCUSSION:
The Program will help retail and restaurant businesses that were impacted by the pandemic and its negative economic consequences to mitigate their financial hardship and meet post-pandemic customer expectations. The Program will provide qualifying small businesses in the three pilot cities-South San Francisco, San Bruno, and San Mateo-with technical assistance and grant funds.
To qualify under the Program, impacted small businesses must, subject to additional eligibility criteria established under the cities’ grant programs, (i) be a small business-defined, for these purposes, to mean a business having no more than 15 employees, that is independently owned and operated and that is not dominant in its field of operation; (ii) have, where required, a valid business license; (iii) have a currently operating physical business address within the pilot cities’ jurisdictional boundaries; and (iv) have suffered financial hardship as a result of the COVID-19 pandemic.
Technical Assistance
The technical assistance component of the Program will focus on space design and physical improvements to qualifying small businesses to help ensure compliance with applicable regulations. Good City, which was selected after an ARPA-compliant solicitation process, will provide technical assistance and training support.
Specifically, Good City will develop and deliver three in-person and virtual training sessions for qualifying small business owners covering the following topics:
Topic 1: Overview of disabled access compliance requirements for retail and restaurant businesses including compliance with Federal, State, and local government regulations related to disabled access compliance (i.e., Americans with Disabilities Act (ADA) and the California Disabled Persons Act).
Topic 2: Regulatory considerations when making physical improvements to a business location such as local building requirements and permits, licenses, and fees.
Topic 3: Additional responsibilities of a small business owner and a property owner when making physical improvements to a business location such as hiring contractors and insurance requirements.
Spanish and Chinese simultaneous translation will be available at all sessions. The sessions will also be recorded, and Good City will prepare an overview brochure for each topic. In addition, Good City will develop a series of short instructional videos on each topic that will be shared on the pilot city and County websites and via social media channels. Good City staff will also be available for virtual one-on-one consultations with class attendees to further support the impacted small businesses.
To promote the trainings, Good City staff, in collaboration with economic development staff in the three pilot cities, will “walk the street” and deliver language appropriate brochures in targeted business districts. Good City staff will also provide in-person visits with small business owners to address questions about reinvesting in their businesses through physical improvements and space design.
Grant Program
To further support impacted small businesses that continue to experience the negative financial impacts of COVID-19, the County will provide $100,000 to each of the three pilot cities ($300,000 in total) to develop and administer a grant program for impacted small businesses. Each of the cities is developing their own grant program, the details of which are specified in the terms and conditions of their respective grant agreements, and the general concepts of which are outlined below.
• City of South San Francisco - The City of South San Francisco will provide $5,000 in working capital grants to eligible impacted small businesses. Eligible small businesses must have fifteen or fewer employees or employ a minimum of 3 low-income employees, that is independently owned and operated, has a valid business license, and is in operation. Grant funds may be used for past due rent, payroll, utilities, or small equipment purchases to sustain operations. The City of South San Francisco will work with the Renaissance Entrepreneurship Center, located in the South San Francisco Economic Advancement Center, to help promote and administer the grant program. The City will use their online grant application platform to solicit applications and select grantees via a lottery.
• City of San Bruno -The City of San Bruno will develop comprehensive guidelines to administer a grant program to small businesses impacted by the pandemic. Grant funds may be used for business modifications, and operational expenses. To be eligible for a grant, an impacted small business must be located in San Bruno, have no more than 15 employees, earn less than $3 million in annual gross income, not be dominant in its field of operation have a current San Bruno business license, attend technical training sessions, and submit the required documents demonstrating negative COVID impacts.
• City of San Mateo - The City of San Mateo will provide impacted small businesses with a $5,000 grant to mitigate financial hardship and enhance customer service and accessibility and increase business resilience. Businesses will need to attend the three classes or webinars to qualify for the grant. The grant may be used to purchase accessible furniture and/or fixtures and equipment for indoor or outdoor spaces at the business location (tables, chairs, barriers, counters, etc.) To be eligible for a grant, a small business must have a currently operating physical business address within the City of San Mateo, have fifteen or fewer employees, be independently owned and operated and not dominant in its field of operation, earn less than $3 m in gross revenue, and have a valid business license. The City of San Mateo will work with a third-party non-profit to promote and administer the grant.
Staff recommends entering into an agreement with Good City to provide technical assistance to COVID-impacted small businesses in connection with the Program, in an amount not to exceed $64,426 and a term ending June 30, 2024. Staff also recommends entering into grant agreements with the City of South San Francisco, City of San Bruno, and City of San Mateo to implement small business grant programs in their respective cities, each in an amount not to exceed $100,000 ($300,000 in total) and a term ending June 30, 2024. Thus, the County’s total fiscal obligation under the Program, including the agreement with Good City and the three grant agreements with the pilot cities, is not to exceed $364,426.
The County Attorney’s Office has reviewed and approved the proposed resolution and the agreements as to form.
PERFORMANCE MEASURES
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Total number of small business owners attending the technical assistance training sessions |
Target: 100 |
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Total number of small business grants distributed through the Program |
TBD by the design of the city grant programs. Expectation is that all funds will be distributed no later than December of 2023 |
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Number of small businesses attending training and/or receiving grants that are in business in June 2024 |
Target: 100% |
EQUITY STATEMENT
The Program will advance equity in San Mateo County by increasing the resilience of small businesses by informing and assisting small business owners, many of whom are immigrants, women, and people of color. By supporting local small businesses in targeted neighborhoods, the Program will also retain and potentially create jobs for immigrants, women, and people of color.
There are no anticipated negative equity impacts from the Program.
FISCAL IMPACT:
The $364,426 allocated to the Program will be provided through ARPA funds, to the extent available and eligible.