Economic Vitality Committee Agenda and Packet 2020 12 18

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SUBJECT: BUSINESS PANDEMIC SUPPORT RECOMMENDATIONS DATE: DECEMBER 18, 2020 PAGE 5 OF 9 In order to move a grant program forward quickly for City Council consideration, it is critical to propose well-defined eligibility. As reference, the Emergency Solutions Grant application is included as Attachment #1 and the Recovery & Improvement Matching Grant application is included as Attachment #2. The program eligibility for the Emergency Solutions Grants included: • Brick -and -mortar business in the City of Louisville; • Business in operation as of March 10, 2020 (date of Governor's State of Emergency Declaration); • Business is current on all City accounts as of date of application; • Business employed 25 of fewer FTEs as of March 10, 2020; • Business is one of nine eligible types; and • Submitted a complete and signed application, including all program acknowledgments. Because it was not feasible for all eligible businesses to receive funding, the City also employed frequency of sales tax filing (monthly, quarterly, and annually) as well as length of business operation in Louisville, to determine grant approvals. Based on feedback received, both of these factors were more difficult for applicants to understand how they were employed. Staff recommends limiting the business types as suggested above rather than performing extensive sorting and ranking. In the first grants, only some quarterly filers and no annual filers received funding. To deal with the potential situation of more eligible applications than available funding, staff will need direction, and to some extent, this depends on the number of business types the Council wishes to consider. If there is more than one business type eligible, then the types could be prioritized. For instance, if restaurants and bars as well as gyms and fitness users are eligible, Council could instruct to fund all restaurants and bars first and then any available funding would then go to the next category. Staff could again employ length of business operation, though there is not always a match between what the business states on the application and the City's record. It may make sense to use first come, first serve as the basis after business type. The other area of eligibility that was most contentious with prior applicants was number of employees. Staff would not recommend using the full-time equivalent definition again, as it was largely unfamiliar to businesses. Based on the business types being considered, it is unlikely any of Louisville's primary employers would be submitting an application. Eliminating staffing counts will simplify the application and would ensure those most restricted business types would have access to funding. Staff recommends that eligibility continue to include brick -and -mortar licensed businesses that were in business at the start of the pandemic and which are current on all City accounts. Staff also suggests the application include acknowledgements that an applicant must certify. Since the goal of such a grant program is immediate aide to Agenda Packet P. 10