Title
Consider a memorandum/resolution to approve eligible applicants and allocate funding for the American Rescue Plan Act - Small Business Relief Grant.
Summary
DATE: December 6, 2022
TO: Kent Cagle, City Manager
FROM: Leslie Hinkle, Executive Director Community Development
SUBJECT: American Rescue Plan Act - Small Business Relief Grants
BACKGROUND AND FINDINGS:
The City Council allocated American Rescue Plan Act (ARPA) funds to assist businesses that sustained a net loss in revenue due to the COVID pandemic. A business relief grant application was developed for businesses to apply for the grant that would grant assistance up to $10,000 per applicant and not exceed the losses reported from federal income tax filings between 2019 and 2020.
Applications were received from February 1, 2022 to April 13, 2022. Eighty-nine applications were received. City Staff reviewed all the applications, verified submitted tax returns for tax years 2019 and 2020 for revenue losses and verified the eligibility for the grant. Twenty-one business applications met all the requirements, sustained revenue losses and are recommended for funding.
|
Business Name / Business Type |
Amount Eligible |
|
1. Henderson Food Service LLC/ restaurant |
$10,000 |
|
2. Totally 4 Kids/childcare services |
$10,000 |
|
3. LUTUM LLC/construction company |
$10,000 |
|
4. MARQUEZ MEXICO LINDO/restaurant |
$10,000 |
|
5. V.A salon LLC, DBA Rose Nails/nail salon |
$10,000 |
|
6. Lil's Touch of Class Beauty Salon/hair salon |
$10,000 |
|
7. JUDY'S PERSONAL TOUCH/hair salon |
$10,000 |
|
8. WAN KIM 49 LLC/billiards, game room |
$10,000 |
|
9. PRESSED BEAUTY BAR/hair salon |
$10,000 |
|
10. NJ SPA LLC./nail salon |
$10,000 |
|
11. ISLAND SPICE RESTAURANT/restaurant |
$10,000 |
|
12. AN TRONG CORPORATION, DBA Ann’s Nails/nail salon |
$10,000 |
|
13. PHOENIX AWAKENING MASSAGE LLC./massage training school |
$10,000 |
|
14. Faye Carol Thomas, DBA Gift City/gift shop |
$10,000 |
|
15. Southwest Coaches Inc. DBA Arrow Trailways of Texas/ bus service |
$10,000 |
|
16. Divine Hair Design Salon & Boutique |
$3,849 |
|
17. Sopheak LAK, DBA Wally's Donuts/restaurant |
$794 |
|
18. SOLAR NAILS/nail salon |
$328 |
|
19. LVL99 LLC/auto repair |
$10,000 |
|
20. FCO Construction Services LLC/construction company |
$10,000 |
|
21. TopKoat Nail Salon/nail salon |
$2,254 |
|
Total Business Relief: |
$177,225 |
THE ALTERNATIVES CONSIDERED:
1. Do not authorize City Staff to issue grant payments to twenty-one applicants for small business assistance.
2. Authorize City Staff to issue grant payments to some of the applicants and/or change the amounts authorized.
3. Authorize City Staff to issue grant payments to twenty-one applicants for small business assistance.
Which alternative is recommended? Why?
Alternative 3 is recommended.
CONFORMITY TO CITY POLICY:
This item conforms to all applicable City Policies.
FINANCIAL IMPACT:
What is the amount of the expenditure in the current fiscal year? For future years?
The total expenditure in FY 2023 is $177,225. $1,000,000 of American Rescue Plan Act Funds were budgeted for this program, as well as the North Killeen Downtown Small Business Grant. $965,812 was spent on the North Killeen Downtown Small Business Grant. A corresponding budget amendment will appropriate the additional $143,037 needed to fund the difference.
Is this a one-time or recurring expenditure?
One-time
Is this expenditure budgeted?
Yes, upon approval of the corresponding budget amendment.
If not, where will the money come from?
N/A
Is there a sufficient amount in the budgeted line-item for this expenditure?
Yes, upon approval of the corresponding budget amendment.
RECOMMENDATION:
Staff recommends that the City Council authorize City Staff to issue the grant payments to the twenty-one applicants for small business assistance at the recommended amounts.
DEPARTMENTAL CLEARANCES:
Finance
Legal
ATTACHED SUPPORTING DOCUMENTS:
N/A