06-16-2020 CARESCARES Act
Small Business Assistance
Grant Program
1
CARES Act
Small Business Assistance Grant Program
2
POLICY QUESTION
Should the City Council approve the Mayor’s
Recommendation approving a Small Business
Assistance Grant program in response to
COVID-19?
CARES Act
Small Business Assistance Grant Program
3
RECOMMENDATION
Deployment of a potential two-round grant
program not to exceed $2 million.
Assistance to Businesses with 10 or less employees.
Approval of $1 million for Round One.
Option 2 , $1,000 per business up to 500 businesses
$2,000 per business up to 250 businesses
Approve budget not to exceed $70,000 for
software and personnel
CARES Act
Small Business Assistance Grant Program
4
BACKGROUND
Governor Announced $300 million to local
jurisdictions
The state allocated $2,935,200 for Coronavirus Relief
Funds to Federal Way based upon population.
Can reimburse the City for both the grant monies and
the cost for its deployment
CARES Act
Small Business Assistance Grant Program
5
BACKGROUND
Eligible Categories:
1. Medical Expenses
2. Public Health Expenses
3. Payroll Expenses for Public Employees response
to COVID-19
4. Facilitate Compliance with COVID-19 Measures
5. Economic Support
6. Other COVID -19 Expenses
CARES Act
Small Business Assistance Grant Program
6
DISCUSSION
Directed by Mayor to formulate plan
Deploy Grants in a Quick and Efficient Manner to aid
the Federal Way Businesses
CARES Act
Small Business Assistance Grant Program
7
OPTIONS
Third Party Vendors
City Deployment
CARES Act
Small Business Assistance Grant Program
8
THIRD PARTY VENDORS
Slow to Marketplace
Higher Costs for Deployment 7.5% to 20% per $1m
City Still has Liability and Work
CARES Act
Small Business Assistance Grant Program
9
CITY DEPLOYMENT
Administration
Software Acquisition
Web -based Platform
Personnel
Telecommunications/Digital Access
CARES Act
Small Business Assistance Grant Program
10
CITY DEPLOYMENT
Can Get to Marketplace Quicker
Lower Cost- 7 % for $1 mil. Deployment
Achieve lower % of cost at $2 mil.
Key Costs, Personnel, Software, Department Support
(Legal & Finance)
CARES Act
Small Business Assistance Grant Program
11
CRITERIA-ELIGIBILITY
Domiciled in Federal Way
Possess A Federal Way Business License
Must have been in Business 1 year prior to 2020
Must be current on all Taxes and Government fees
Not a Recipient of other State and Federal COVID-19
Funding
CARES Act
Small Business Assistance Grant Program
12
CRITERIA-ELIGIBILITY
No more than 10 employees
Annual Revenues Cannot Exceed $1.5 million
CARES Act
Small Business Assistance Grant Program
13
MARKETPLACE
Slightly >5,000 businesses or 82% of the total
businesses that employ less than 5 people.
491 businesses or 8% employ 6-10 employees.
Equals nearly 90% or roughly 5,600 businesses out of
the total.
CARES Act
Small Business Assistance Grant Program
14
MARKETPLACE
SIZE OF BUSINESSES IN FEDERAL WAY, 2020
5 employees or less 5,098
6 - 10 employees 491
11 - 15 employees 176
16 - 20 employees 100
21 and above 369
CARES Act
Small Business Assistance Grant Program
15
MARKETPLACE
BREAKDOWN OF BUSINESS BY EMPLOYEES
0 employee 2,534 (owner only)
1 employee 1,063
2 employees 645
3 employees 338
4 employees 267
5 employees 251
CARES Act
Small Business Assistance Grant Program
16
GRANT LEVELS
1. $2,000 per Business up to 500 Businesses
10%/20% of Identified Eligible Group/Lottery
2. $1,000 per Business up to 500 businesses &
$2,000 per Business up to 250 Businesses
15%/30% of Identified Eligible Group.
CARES Act
Small Business Assistance Grant Program
17
GRANT LEVELS
3. 50 grants @ $5,000; 100 @ $4,000, 100@ $3,000
50 @ $2,000
5.5%/11% of Identified Eligible Group
Weighted Criteria
Slower to Deploy
CARES Act
Small Business Assistance Grant Program
18
GRANT LEVELS
4.1,000 grants of $1,000 provide grants similar to priority of
options 1 and 2. If second round, go to larger grants of
$5,000 to $10,000 using weighted criteria.
Initially gets to larger Identified Eligible Group 18% however
with second round not more than 21%
Slower to deploy due to weighting process.
CARES Act
Small Business Assistance Grant Program
19
RECOMMENDATION-OPTION 2
$1,000 per Business up to 500 businesses
& $2,000 per Business up to 250
Businesses
15%/30% of Identified Eligible Group.
Quick to Deploy
CARES Act
Small Business Assistance Grant Program
20
ELIGIBLE COSTS
Rent
Utilities
Insurance
Marketing
Personnel Protection Equipment
Payroll or Benefit Expenses
CARES Act
Small Business Assistance Grant Program
21
GRANTS
Liquidity in the Marketplace- Business Stimulus
Does not require Business Financials
Follows State Guidelines
ADA & Foreign Languages
Hot Line Assistance with Application
CARES Act
Small Business Assistance Grant Program
22
ELEMENTS
Application
Proof of Business License
W-9
Grant Contract
CARES Act
Small Business Assistance Grant Program
23
QUESTIONS