To: Honorable Mayor and Members of City Council
From: Vin Smith, Community Development Director
Prepared By: Stephanie Cajina, Senior Development Specialist
TITLE:
Title
City of Napa COVID-19 Microenterprise Grant Program
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RECOMMENDED ACTION:
Recommendation
Adopt a resolution authorizing the Community Development Director or City Manager to establish administrative regulations to implement and administer a COVID-19 Microenterprise Grant Program.
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DISCUSSION:
The City of Napa's COVID-19 Microenterprise Grant program's aim is to provide micro-grants of $5,000 to small businesses owners that meet CDBG eligible income requirements (80% or less of Area Median Income (AMI)). Following Council approval, the Community Development Director will establish administrative regulations that outline the structure of the program and inform applicants on how to access this vital resource to help sustain their business. A total allocation of $185,344 was approved for this program by City Council on August 18,2020.
In contrast to the SBA definition of a small business (one with 500 or less employees), microenterprises are defined by HUD as a commercial enterprise that has 5 or fewer employees, 1 or more of whom owns the enterprise. In 2019, the "City of Napa Economic Development Strategy" noted that businesses with fewer than 10 employees represented nearly 72% with the city's jobs (page 2). For economic development purposes, the City of Napa's small business sector is vital to success of our local economy.
By focusing this funding on small business owners that meet the 80% AMI income requirement, the COVID-19 Microenterprise Grant program is specifically addressing the needs of socio-economically disenfranchised entrepreneurs, that may not have other access to resources or cannot rely on traditional financing during this challenging economic period.
The grant funds may be used for the following purposes: (1) to pay costs associated with e-commerce (deliver...
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