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20-0818_CREER COMUNIDAD Y FAMILIA_PowerPoint_F3aProposed Use of State CARES Funds Item F3(a) August 18, 2020 CARES Funding –From County of Orange •County CARES -$313,000: •Can only use for public health •Sufficient to cover anticipated public health expenditures •Can’t use for City revenue losses 2 CARES Funding –From State of California •State CARES -$450,000: •Broader use permitted by State, including: •Public health •Revenue loss for businesses •Rental assistance •Food distribution •Can’t use for City revenue losses •Seeking City Council approval for proposed use of funds 3 Proposed Use of State Funds •Small Business Grants ($200,000) •Rental assistance ($200,000) •Food distribution ($50,000) 4 Proposed Small Business Grants Program •Proposed allocation -$200,000 •Modeled after County’s small business grant program •Maximum of $10,000 per business •Only SJC businesses can apply •Not home-based •100 employees or less •Impacted by COVID-19 (evidenced by one of the following): •25% decline in revenue •Loss of at least one employee 5 Proposed Administration of Business Grants •Small Business Development Center (no cost): •Develops program criteria (in consultation with staff) •Sets up web-based application process •Chamber of Commerce (no cost): •Assists with outreach •RSG Consultants ($11,000): •Evaluates applications •Makes selection based on criteria 6 Proposed Rental Assistance Program •Proposed allocation -$200,000 •Staff recommends use of South County Outreach (SCO) to administer program •SCO is providing similar services for other cities •Must be SJC resident •SCO screens and obtains documents (ID, SSN, rent agreement, past due notice, etc.) •Pay one month of rent per family •SCO charges 10% administrative fee per grant 7 Proposed Food Distribution Program •Proposed allocation -$50,000 •Use nonprofit organizations with established food distribution program •Up to $25,000 per organization •Must be headquartered in San Juan Capistrano •Must regularly feed 200 SJC families or more per week 8 Recommendations 1.Approve proposed general allocation of $200,000 for small business grants, $200,000 for rental assistance and $50,000 for food distribution 2.Authorize City Manager to contract with Small Business Development Center, South County Outreach and RSG 3.Authorize City Manager to develop specific eligibility and program requirements and immediately implement programs to comply with expenditure deadlines 4.Authorize City Manager to modify proposed allocation of State and County CARES funding as needed to address any over/under subscription of programs 9 Thank you QUESTIONS?