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Home My WebLink AboutRES 666 Draft 01 2018-2020 '12 v Vd,,� •, COUNTY OF HAWAII ';•P `'-x / 41 STATE OF HAWAII RESOLUTION NO. 666 20 A RESOLUTION URGING THE ADMINISTRATION TO USE $5 MILLION OF THE FEDERAL CORONAVIRUS AID, RELIEF,AND ECONOMIC SECURITY (CARES) ACT TO FUND A MICRO-GRANT PROGRAM FOR SMALL BUSINESSES AFFECTED BY THE COVID-19 PANDEMIC. WHEREAS, on March 4, 2020, Governor Ige issued a Proclamation declaring a state of emergency to support ongoing State and County responses to COVID-19 and has since issued a total of eight proclamations thus far; and WHEREAS, alongside Governor Ige's proclamations, f-Iawai`i County has also issued a series of emergency rules, supplementary proclamations, and policies pertaining to the current pandemic; and WHEREAS, the State Legislature passed SB75 which allocates $1.25 billion in federal CARES Act funds to support Hawai`i counties in providing benefits for residents and to fund our State government's health response during this global coronavirus pandemic and economic shutdown; and WHEREAS, over $80 million of the CARES Act funds will be distributed to Hawai`i County to provide for immediate needs such as food and rent support, and the funds must be spent by December 31, 2020; and WHEREAS, Section 8 of SB75 states that the mayor of the County of Hawai`i shall consult with the Hawai`i County Council before expending any of the funds appropriated by this section; and WHEREAS, Exhibit A lists goals, eligibility, and details of recommendations for this portion of CARES funding, and provides information on how this proposed programcompares to programs of other counties in the State; now therefore, BE IT RESOLVED BY THE COUNCIL OF THE COUNTY OF HAWAII that it urges the administration to use $5 million of the Federal CARES Act to fund a micro-grant program for small businesses affected by COVID, as outlined in the attached Exhibit A. BE IT FINALLY RESOLVED that the County Clerk shall transmit a copy of this resolution to the Honorable David Ige, Governor; the Honorable Harry Kim, Mayor; Roy Takemoto, Managing Director, and Finance Director Deanna Sako, Dated at Hilo , Hawai`i, this 8th day of July , 2020 • INTRODUCED B COUNCIL MEMBER, Ili UNTY OF HAWAI`I COUNTY COUNCIL _ ROLL CALL VOTE County of Hawai`i AYES NOES ABS EX Hilo, Hawai`i CHUNG X DAVID X I hereby certifythat the foregoing RESOLUTION was b � — —g g � i EOFF X the vote indicated to the right hereof adopted by the COUNCIL sof the ---— — K NEALI-I-KI EINI ELDER X County of Hawai`i on_ _- Ju l y_8, 2020 _-- _-.• --- -- — ----- r-- I KIFRKIE 'ICL I X I LEE L: Y X ATTEST: POINDEA..I'ER X Ricflf',KIS —_—.---- X — —. VI L.I,F(.TAS: X 9 0 0 0 Reference: C-970/GREDC-5 Y CLERK CHAIRPERSON& PRESID 'Cr OFFICER RESOLUTION NC. 666 20 --- r1 EXHIBIT A $5,000,000 of the $80,000,000 received from CARES Act monies should fund a micro-grant program for small businesses affected by COV ID in <=$10K amounts. This would allow the County to assist hundreds of small businesses. Hawaii County Small Business Grant Program • One-time grant for estimated expenses required to stay in business • Open to businesses that have experienced serious decrease in revenue during this time if business interruption was due to Emergency Proclamation, i.e., a non-essential business. Eligible businesses (based on 2019 gross income): • <=$500,000 qualifies for up to $3000 • $500,001 to $1,000,000 qualifies for up to $5000 • <= 24 employees • Registered with Department of Commerce and Consumer Affairs (DCCA) or sole proprietor • Business and owner located in Hawai`i County Additional Non-Essential Businesses Grant (based on 2019 gross income): • Must have been mandated to close by the Governor's Proclamation • <—$999,999 qualifies for up to $2000 • >=$1,000,000 + qualifies for up to $4000 Not eligible: Items covered by the Paycheck Protection Program Additional information for consideration: Compare this proposed program to the grant/Joan programs in 'Ionelulu, Maui, and Kaua`i Counties: O'ahu's $25.000,000 Small Business Relief and Recovery Fund is a reimbursement grant to small business for costs incurred from business interruption due to Emergency Proclamation & to help business implement safety precautions. haps://www.oneoahu.org/small-business • One-time reimbursement for expenses • <= $10K reimbursement/qualified business • <= $1,000,000 in gross annual revenue and • <= 30 employees Eligible businesses: • Registered with the Hawai'i DCCA and sole proprietors • Non-profit organizations registered with the DCCA and designated as tax-exempt under section 501(c)(3) or 501(c)(19) • Owner must be I lawai'i resident and business located in City/County of I lonolulu • Reimbursement program: proof of payment required: invoice, receipt, or other proof of payment needed • Examples of expenses: rent, utilities, payroll, physical distancing measures • Fund will not reimburse payments covered by CARES Act (PPP), EIDL, EIDL advance. etc. • May reimburse expenses incurred to implement physical distancing. other safety precautions to comply with business opening and operating guidelines Maui County's $1,000,000 micro-loan program is being administered by Maui Chamber of Commerce. • <= 10 full and part-time employees, including owners • Loans of$7.5K-$15K loan with 5 year payback • Loans of$15K-$25K loan 7 year payback Eligible businesses: • Registered with I Iawaifi DCCA and sole proprietorship • Businesses must also be located in Maui County for at least a year before COVID • Have ability to create full or part-time employment for low- to moderate-income residents. • Have ability to repay the loan, possess reasonable credit, and payment history.