City of Conway
Small Business Relief Program
2020 SMALL BUSINESS RELIEF GRANT PROGRAM- In response to the economic hardships experienced by small businesses resulting from the COVID-19 pandemic, the city of Conway is launching the 2020 Small Business Relief Grant Program in an effort to retain jobs and stabilize local businesses. The primary Community Development objectives of assistance to low- and moderate-income persons will be achieved as grants to retain jobs that would have otherwise been lost for at least 90 days.
This Program is a gap financing program in response to the Covid 19 outbreak for businesses that have lost business or had to close as a result of social distancing.
I. PROGRAM REQUIREMENTS
1. Eligibility and Terms
Eligible businesses may be awarded up to $10,000 in grant funds for the following eligible uses:
a) Reimbursement for up to 3 months’ rent. The maximum assistance amount is the lesser of 3 months’ rent or $5,000.
b) Reimbursement for up to $5,000 for supplies and equipment purchased for re-opening after a Covid-19 related business closure.
2. Eligible Businesses
- For-profit business located in the city of Conway
- Applicant is 51% + majority owner of business
- Owner/applicant is a qualified Low/Mod Income household (for businesses with no more than 5 employees) OR business commits to retaining FTE jobs held by a member of Low/Mod Income household
- Owner is 18 years or older
- Owner has or will have a valid SS #, EIN & DUNS, Business Bank Account
- Owner/Applicant is not currently in bankruptcy
- Owner/Applicant is current with property taxes and municipal fees, or has a payment plan in place with the municipality as of May 30, 2020
- Business will have active liability insurance within 30 days
- Satisfied deliverables of other City-based funding requests (as applicable)
- Not have a conflict of interest with the city of Conway, or the operating program agency
- Maximum request:
Rent Assistance: Lesser of three months’ rent or $5,000
Equipment or Supplies: Actual amount up to $5,000
- Minimum request: $1,000
- Business Relief program recipients must retain at least one job for a minimum of 90 days.
II. PROGRAM SERVICE AREA
Financing under this Program is available to eligible for-profit businesses registered and located within the city of Conway. The location of the business will be determined by the place of business administration and registration address.
III. FUNDING SOURCE AND REIMBURSEMENT
The Business Relief Program is funded through Community Development Block Grant-CV (CDBG-CV) funds provided by the Federal Department of Housing and Urban Development (HUD) to the city of Conway. As such, these funds have Federal requirements, as described below.
Funds will be disbursed by reimbursement to the applicant for documented eligible project expenses.
IV. ELIGIBLE APPLICANTS
- Retail oriented businesses including restaurants serving a primarily Low- or Moderate-income area and have been in operation in the city of Conway for at least 12 months.
- Micro Enterprises – businesses with 5 or fewer employees including the owner/operator. Owner must qualify as Low or Moderate income and have been in operation in the city of Conway for at least 12 months.
- Business that do not serve a low-moderate income area or are not a micro enterprise are eligible, provided they commit to the retention or creation of at least one job held by a member of a low-moderate-income household and have been in operation in the city of Conway for at least 12 months.
- Job retention is defined as total full-time equivalent positions retained at 40 hours per week, or any combination of part-time positions combining for 40 hours per week, including owners. At least 51% of the positions retained or created must be held by employees who are a member of a low-moderate-income household or the job can reasonably be expected to turn over within the following two years and steps will be taken to ensure that the job will be filled by, or made available to, a LMI person
- For funded activities that retain jobs, there must be sufficient information documenting that the jobs would have been lost without the CDBG assistance.
- Eligible applicants must have a registered business address within the city limits of Conway.
V. INELIGIBLE APPLICANTS
- Nonprofit organizations are not eligible businesses and will not be considered for funding.
- Other ineligible businesses include payday grant businesses, pawn shops, adult entertainment, passive real estate investments, or home-based businesses operating without appropriate zoning and/or permits.
VI. ELIGIBLE USE OF FUNDS
- Reimbursement for up to 3 months rent, not to exceed $5,000.
- Eligible months are June 2020, July 2020 and August 2020.
- Eligible applicants must not be delinquent on rent.
- Reimbursement for expenses related to re-opening or restarting of a business line after a Covid-19 related closure, such as a restaurant resuming on-site dining. Eligible expenses are limited to actual amounts up to $5,000 and include:
- Professional services including engineering, architectural, local permits or fees, business consulting services as approved by City staff
- Equipment purchase (with or without installation costs)
- Marketing materials and advertising including website development and servicing
VII. INELIGIBLE USE OF FUNDS
In addition to CDBG-ineligible costs outlined in 24 CFR 570, funds under this Program may not be used to:
- Reimburse expenses incurred prior to Applicant approval of grant or grant.
- Pay off non-business debt, such as personal credit cards for purchases not associated with the business.
- Purchase personal expenses such as buying a new family car or making repairs to a participant’s home.
- Direct financing to political activities or paying off taxes and fines.
- Purchase of personal items
- Support of other businesses in which the borrower may have an interest.
VIII. Applicant Capacity
The City must confirm that the business and the applicant(s) possess the capacity to execute the project proposal to be successful with the use CDBG funds. As such, grant applicants for the Relief Program are required to demonstrate management capacity and ability to successfully operate a business through their application.
IX. Cash Flow
City of Conway
Business Relief Program