Economic Vitality Committee Agenda and Packet 2021 05 27

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SUBJECT: COVID-19 BUSINESS IMPACT FOLLOW-UP SURVEY RESULTS DATE: MAY 21, 2021 PAGE4OF5 Overall Impression: With Louisville having approximately 750 brick -and -mortar businesses it is important to realize the responses to the survey do not necessarily represent all those operating a business in the City. With the recent evolution of the Dial framework, the experience of businesses will also likely continue to change —hopefully toward a more full and predictable recovery period. But with so many respondents indicating that the pandemic impact remained about the same, even after transitioning to Level Yellow, and that they still require financial assistance, the survey shows there is still ongoing need for business support. Treasury guidance on the American Rescue Plan Act (ARPA) was just released on May 10; City staff will be reviewing this and providing a future update to City Council on the potential uses of funds, in line with the guidance received. Based on the survey results, other input from businesses, and conversations with peer communities, staff sees several categories of funding that could be directed to business support, including: • Direct financial assistance, such as grants; • Funds for business investments, similar to the Recovery & Improvement Grant program from 2020; • Marketing campaign and promotional resources for businesses; and • Contracts for technical assistance and programming. Although the City was not able to spend all of the allocated funds for its Small Business Preservation Grant program early in 2021, there are still businesses that need resources to cover basic expenses. The last grant program was limited to specific business sectors, so it may be helpful to consider broader eligibility for types of businesses but more criteria around financial hardship or revenue loss. There are other programs for business funding within the ARPA (such as the Restaurant Revitalization Fund, RRF), but local businesses will need to compete at a federal level for such resources. For example, the RRF opened on May 3 and in two days, received 186,200 applications; 97,600 were from Priority 1 applicants (women, veterans, and socially and economically disadvantaged). Depending on the level of awards for Priority 1 applicants, the fund could be depleted before other business applications are reviewed. The Paycheck Protection Program (PPP) has also nearly run out of money and is no longer accepting new applications except for targeted businesses —such as women-, minority-, and veteran -owned businesses. There are a number of loan programs available with enhanced terms, such as the Climbers Fund and Colorado Revolving Loan Fund; however, many businesses have been reluctant to take on new loan sources given continued uncertainty. Local businesses preferred the direct cash grants over the Recovery Grant program, which provided matching funds for investments in the business. Staff is monitoring, Agenda Packet P. 9