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BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No. 9.
For Meeting of: November 2, 2020
ITEM TITLE: Update on additional COVI D-19 funds from CDBG-CV and
CARES Act funds
SUBMITTED BY: Sara Watkins, Senior Assistant City Attorney
Joan Davenport, Community Development Director
SUMMARY EXPLANATION:
The City of Yakima was recently notified of an award for additional $618,993 funding for COVI D-
19 impacts from Community Development Block Grant(CDBG). This is the second allocation to
the City of Yakima authorized by the Coronavirus Aid, Relief and Economic Security Act
(CARES Act). The cumulative allocation toi the City of Yakima for this fund is $1,221,209. With
the first allocation, the City of Yakima retained a portion of the funds for administration and the
remaining $468,000 was directed to microenterprise (5 or fewer employees)for grants of up to
$10,000 or those businesses that have suffered economically with the COVI D related shut down
and costs. Yakima County Development Association (YCDA) administered this program. With
this second allocation, staff suggests consideration of other optional programs.
ITEM BUDGETED:
STRATEGIC PRIORITY:
APPROVED FOR SUBMITTAL BY THE CITY MANAGER
RECOMMENDATION:
ATTACHMENTS:
Description Upload Date Type
memo 10/27/2020 r Me 0
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CITY OF YAKIMA
LEGAL
DEPARTMENT
200 South Third Street,2nd Fl. I Yakima,WA 98901 P: 509.575.6030 I F: 509575.6160
MEMORANDUM
November 2, 2020
TO: Honorable Mayor and Members of the City Council
Robert Harrison, City Manager
FROM: Sara Watkins, Senior Assistant City Attorney
SUBJECT: CARES Act funding update
The City Council approved three different CARES Act grant opportunities over the past months:
a micro-enterprise grant program with the CDBG-CV money, a small business grant program
with CARES Act money, and a non-profit grant program with CARES Act money. The micro-
enterprise and small business grants have been awarded as of the date of this memo. The non-
profit grant program application period closed on October 30, 2020, so a subsequent update will
be provided on those grants. Below is a summary of the status of the programs.
1. CDBG-CV micro-enterprise grant program
Approximately $460,000 of CDBG-CV funding was made available to micro-enterprises within
the City of Yakima. A micro-enterprise, as defined by HUD, is a business with five (5) or fewer
employees, one of whom is the owner. The owner also must meet the low to moderate income
requirements of the CDBG program.
YCDA received 99 applications for funding under this grant program. However, some of the
applications were for businesses that did not meet the CDBG requirements. Out of the 99
original applications, 74 of the businesses met the initial criteria. After the income verification
process, YCDA was able to award 35 of those businesses funding in the total amount of
$269,520.97. A general breakdown of the type of business is as follows:
Salon/Barbershop/Tanningl6
Restaurant/Bar/Coffee 8
Retail/Auto 6
Tattoo 3
Medical 1
Dance Studio 1
Total: 35
All eligible micro-enterprises received a grant. Further, those businesses which did not qualify
for the micro-enterprise grant program were ultimately funded through the CARES Act small
business grant program (see #2 below), Yakima County CARES Act funding, or other
Department of Commerce funding administered by YCDA. Ultimately 80 micro-enterprises
within the City were funded with a total of$479,641 from all sources.
3
Honorable Mayor and Members of the City Council
Robert Harrison, City Manager
November 2, 2020
Page 2
2. CARES Act small business grant program.
The City also provided funding for a small business grant program. Small businesses were
defined as those businesses with 25 or fewer employees, located within the City of Yakima, and
in business at least 365 days prior to September 1, 2020, with a valid City business license.
The business was required to provide proof that it wasn't able to operate at all, or wasn't able to
operate at 100% due to the required closures and opening restrictions due to COVID-19.
YCDA received 369 applications for the small business grant program. Currently 141 of the
applications are eligible to receive funding. Some businesses were not located within the city
limits, did not meet the definition of small business, and some had already received $10,000.00
or more in other assistance. The 141 businesses are receiving a total of $981,846. There are
also 44 businesses that applied, but did not have a currently valid City of Yakima business
license. YCDA is working with those businesses to get their business license, and if they can
obtain their license by mid-November, they may also be eligible for grant funding. Here is a
general breakdown of the types of businesses that applied for funding and were either already
granted funds or are working on obtaining their business license:
Restaurant: 30
Bar: 3
Cosmetology 53
Retail: 31
Services: 49
Healthcare: 5
Construction: 5
Childcare: 4
Entertainment: 3
Manufacturing: 1
Hotel: 1
TOTAL: 185
3. CARES Act non-profit grants
In the second amendment to the YCDA contract, the City Council authorized YCDA to provide
grants to non-profits located in Yakima. The application period for the CARES Act non-profit
grants closes on October 30, 2020 and awards will be made shortly thereafter. YCDA
contacted all of the non-profit organizations that met the qualifications and have contractual
relationships directly regarding the grant. Other non-profits seeking grant funds were directed to
YCDA's website to apply for funding.
4. Additional CDBG-CV funds.
The City was awarded an additional approximately $600,000 in CDBG-CV funding. Staff will
return with ideas and options for the use of this money at an upcoming Council meeting.