Economic Vitality Committee Agenda and Packet 2020 12 18

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SUBJECT: BUSINESS PANDEMIC SUPPORT RECOMMENDATIONS DATE: DECEMBER 18, 2020 PAGE 4 OF 9 in Boulder County. The retained sales tax measure has a more immediate result, though when many businesses are witnessing reduced sales between 30% — 50%, the sales tax revenue to the state is already a much smaller amount. Recommended Short -Term Actions: Staff recommends a grant program as the immediate form of assistance. A targeted program could be mobilized quickly, with the goal of providing funds to businesses in early -to -mid January. Generally, this program would look more like the Emergency Solutions Grant program, so that administration is simplified through clearly defined eligibility. If a business meets the eligibility criteria and there is sufficient funding, a grant would be approved. Staff believes January will be a critical month, since it is unlikely that Boulder County will move out of Level Red before the end of December, and businesses will have rent, payroll, supplier bills, etc. coming due in January. This grant program can be made specific to the industries listed above so that funds can go to those most likely in need. Below is a list, by industry type, of the number of businesses in each category (used for sales tax purposes) that is currently restricted to 25%, or 25 people, whichever is less. Staff has also reviewed each of the categories below to ensure exclusions have been made, consistent with the State's definitions for public health orders, and has only included brick -and -mortar licensed businesses. • #58 Eating and Drinking Places (Restaurants and Bars): 88 • #71 Personal/Business Services: 60 • #73 Amusement/Recreation Services and #76 Educational Services/Social Services (Gyms/Fitness): 45 • #74 Health/Medical Services: 40 These industries would total around 233 eligible businesses. Including all of these industry categories would make it more difficult to administer than the first grant program, because there are businesses within the industry type that should not be eligible. For example, a dentist would be licensed as a health/medical services provider, but should not be eligible for the grant because the business is not operating under the same level of restriction as "limited health care" providers. These distinctions would also be difficult to clearly communicate —meaning numerous businesses might apply thinking they are eligible when indeed they are not. From staff's perspective restaurants and bars provide the clearest eligibility and are the most limited by restrictions; gyms and fitness users are the next most impacted group and could be distinguished even though they spread across two industry categories. The number of eligible business types and total allocated funding will likely dictate the amount of individual grants, but staff suggests that grants of $5,000 were well received in the first round and assisted businesses in covering core operating costs. Similar to the Emergency Solutions Grants, staff can propose the program to the LRC. If the LRC funded eligible businesses within the Urban Renewal Area, it would certainly allow more businesses to receive assistance overall. Agenda Packet P. 9