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HomeMy WebLinkAboutCounty of Hawaiʻi Kona Low Business Recovery Grant Guidance County of Hawaiʻi Kona Low Business Recovery Grant Program Department of Research and Development Application Schedule Date Application Period Open June 26, 2026 Informational Webinar July 9, 2026, 8:00 AM Application Deadline August 31, 2026, 4:30 PM Award Notification September 18, 2026 Fund Term End March 31, 2027 Grant Program Webpage https://www.rd.hawaiicounty.gov/funding-grant-resources/kona-low-business-recovery-grant Register for July 9 Informational Webinar https://www.zoomgov.com/webinar/register/WN_6Gkq1l23QNq12aQGS5vFQQ. Application Portal https://www.gotomygrants.com/Public/Opportunities/Details/bf674031-ea2c-4108-b49c-b24303b4b435 Department of Research and Development 25 Aupuni Street, Room 1301 Hilo, Hawaiʻi 96720 (808) 961-8366 chresdev@hawaiicounty.gov www.rd.hawaiicounty.gov The County of Hawaiʻi is an Equal Opportunity Employer and Provider CONTENTS 1 Kona Low Business Recovery Program Guidelines ................................................................. 1 1.1 Program Introduction ..................................................................................................... 1 1.2 Program Purpose ........................................................................................................... 1 1.3 Informational Webinar .................................................................................................. 1 1.4 Program Eligibility .......................................................................................................... 1 1.5 Grant Award Levels ........................................................................................................ 2 1.6 Contract Term ............................................................................................................... 2 1.7 Collection of Demographic Information ............................................................................ 2 1.8 Eligible Uses of Funds ..................................................................................................... 2 1.9 Ineligible Uses of Funds .................................................................................................. 3 1.10 Required Documentation ................................................................................................ 3 1.10.1 Business Documentation ......................................................................................... 3 1.10.2 Storm Impact Documentation .................................................................................. 3 1.10.3 Financial Documentation ......................................................................................... 3 1.10.4 Duplication of Benefits ............................................................................................ 4 1.11 Applicant Certifications ................................................................................................... 4 1.12 Collection of Demographic Information ............................................................................ 4 1.13 Application Processing and Deadline ................................................................................ 5 1.14 County Review and Award .............................................................................................. 5 1.15 Award Notification ......................................................................................................... 5 1.16 Execution of Contracts .................................................................................................... 5 1.17 Payments ..................................................................................................................... 6 1.18 Reporting Requirements ................................................................................................. 6 1.19 Public Inspection ............................................................................................................ 6 2 Contract Provisions ................................................................................................................ 7 2026 Kona Low Business Recovery Grant Program 1 1 KONA LOW BUSINESS RECOVERY PROGRAM GUIDELINES 1.1 PROGRAM INTRODUCTION The two Kona Low storm systems that occurred from March 13-March 27, 2026, caused significant material economic and physical damage to small businesses operating withing the County of Hawaiʻi, creating an urgent need for targeted relief assistance. The State of Hawaiʻi has appropriated funds to the Department of Business, Economic Development and Tourism (DBEDT) to support economic recovery activities. DBEDT has partnered with the County of Hawaiʻi, Department of Research and Development to administer these funds. A total of $475,000 has been allocated to Hawaiʻi Island. 1.2 PROGRAM PURPOSE The purpose of this program is to provide grant assistance to eligible businesses that suffered storm-related physical damage and/or business interruption losses and that continue to have unmet recovery needs not fully covered by insurance or other sources of assistance. 1.3 INFORMATIONAL WEBINAR An informational webinar will take place on July 9, at 8:00 AM. Registration is required. Registration Link: https://www.zoomgov.com/webinar/register/WN_6Gkq1l23QNq12aQGS5vFQQ. 1.4 PROGRAM ELIGIBILITY To be eligible, an applicant must: • Be a non-agricultural business. • Be a business operating within the County of Hawaiʻi prior to March 13, 2026. • Maintain a physical business location within the County of Hawaiʻi. • Employee 500 or fewer employees. • Demonstrate documented physical damage and/or business interruption caused by the March 13–27, 2026 Kona Low events. • Have an unmet recovery need not fully covered by insurance or other sources of assistance due to the March 13-27, 2026, Kona Low events. • Identify eligible use of grant funds supported by documentation. • Submit a complete application with all required documentation. • Be able to provide a Certificate of Liability Insurance (General Liability coverage of $1 million and $50,000 for each occurrence) to the County which expressly states that the County of Hawaiʻi’s an additional insured prior to receiving payment(s). 2026 Kona Low Business Recovery Grant Program 2 1.5 GRANT AWARD LEVELS Grant awards shall be made based on the applicant’s gross annual revenue as reflected in the most recently filed federal tax return. • Tier 1: $5,000 Grant o Businesses with gross annual revenue of $250,000 or less • Tier 2: $10,000 Grant o Businesses with gross annual revenue of more than $250,000 up to $5,000,000 All applicants must demonstrate storm-related unmet need and submit all required supporting documentation. Award approval is subject to program eligibility, documentation sufficiency, and availability of funds. 1.6 CONTRACT TERM The term of grantees’ contracts shall commence as of the effective dates of the contracts and end on March 31, 2027. 1.7 COLLECTION OF DEMOGRAPHIC INFORMATION Applicants are asked to voluntarily provide demographic information for reporting and program evaluation purposes. Submission of demographic information is optional and will not affect eligibility, award amount, or funding determination. Requested demographic information may include: • Business owner gender • Business owner race • Business owner ethnicity • NAICS code from a drop-down list (North American Industry Classification System) The County will use this information only for reporting, program analysis, and other lawful administrative purposes. 1.8 ELIGIBLE USES OF FUNDS Grant funds may be used only for storm-related unmet recovery needs, including: • Equipment repair or replacement. • Inventory replacement. • Temporary relocation costs. • Rent and utilities. • Cleanup or water damage. All requested funds must be supported, as applicable, by quotes, invoices, receipts, estimates, or other documentation acceptable to the County. 2026 Kona Low Business Recovery Grant Program 3 1.9 INELIGIBLE USES OF FUNDS Grant funds may not be used for: • Losses already covered by insurance or other recovery assistance. • Expenses that are unrelated to storm recovery. • Expansion or improvement costs unrelated to pre-storm conditions. • Owner draws or distributions not supported as payroll. • Penalties, fines, or taxes. • Any fraudulent or undocumented expense. • The purchase of alcohol for consumption. 1.10 REQUIRED DOCUMENTATION 1.10.1 Business Documentation Applicants must provide: • Proof of business registration with the State of Hawaiʻi. • Proof of physical business location, such as: o Deed, o Lease, o Utility bill. • Documentation showing the applicant is authorized to sign on behalf of the business, if applicable. Examples may include: o Articles of Incorporation. o Operating Agreement. o Corporate Resolution. o Sole proprietorship or trade name documentation. 1.10.2 Storm Impact Documentation Applicants must provide documentation of storm-related loss, which may include: • Damage assessments with photos. • Insurance claim documentation and claim status. • Inventory loss records. • Quotes, invoices, or receipts. • Financial statements reflecting business interruption or operational impacts. 1.10.3 Financial Documentation Applicants must provide: • Most recently filed federal tax return. • Year-to-date profit and loss statement. • Year-to-date balance sheet. • Sales records and/or most recent quarterly GET filing, if applicable. 2026 Kona Low Business Recovery Grant Program 4 1.10.4 Duplication of Benefits Grant funds may only be awarded for unmet storm-related needs not already covered by insurance or other public or private recovery assistance. Applicants must disclose all other disaster-related assistance applied for or received, including but not limited to: • Insurance proceeds. • SBA assistance. • FEMA assistance. • State assistance. • Nonprofit or private relief assistance. The County may reduce or deny an award where losses have already been compensated by another source. If an applicant later receives insurance or other recovery assistance for the same cost paid by this grant, the applicant may be required to repay all or part of the grant. 1.11 APPLICANT CERTIFICATIONS As part of the application, the applicant must certify that: • All information submitted is true and correct • The claimed losses were caused by the March 13–27, 2026 storm events. • Grant funds will be used only for approved storm recovery purposes. • The applicant will provide additional documentation if requested. • The applicant will retain records related to the grant for a period specified by the County. • The applicant shall notify the County if additional insurance proceeds or other recovery assistance is received for the same losses after the grant is awarded. The County may require repayment, reduction, recapture, or reallocation of grant funds to prevent duplication of benefits. 1.12 COLLECTION OF DEMOGRAPHIC INFORMATION Applicants are asked to voluntarily provide demographic information for reporting and program evaluation purposes. Submission of demographic information is optional and will not affect eligibility, award amount, or funding determination. Requested demographic information may include: • Business owner gender • Business owner race • Business owner ethnicity • NAICS code from a drop-down list (North American Industry Classification System) 2026 Kona Low Business Recovery Grant Program 5 The County will use this information only for reporting, program analysis, and other lawful administrative purposes. 1.13 APPLICATION PROCESSING AND DEADLINE Applications will be processed only when deemed complete by the County. Incomplete applications may be held pending submission of missing materials or may be denied. Applications are due August 31, 2026, at 4:30 p.m. No hard copies will be accepted. Applications to be submitted through the Department of Research and Development’s Online Grant Portal at https://www.gotomygrants.com/Public/Opportunities/Details/bf674031-ea2c- 4108-b49c-b24303b4b435, which will be posted on the Department’s Kona Low Business Recovery Grant webpage at https://www.rd.hawaiicounty.gov/funding-grant-resources/kona- low-business-recovery-grant. 1.14 COUNTY REVIEW AND AWARD Submission of an application does not guarantee funding. The County will review applications for: • Completeness, • Eligibility, • Documented storm impact, • Unmet recovery need, and • Availability of funds. The County reserves the right to request additional documentation, verify submitted information, and deny incomplete or unsupported applications. Award amounts may be adjusted based on documentation, eligibility, and available funding. If total eligible funding requests exceed available program funds, the County reserves the right to limit, prorate, or deny awards based on available funding and program priorities. 1.15 AWARD NOTIFICATION The proposer, upon being selected for grant funding, will be notified of award by the Department. Said notice shall not be construed to be authorization to proceed with the performance of any program. Any services performed by the Proposer prior to execution of the grant contract shall be at the proposer’s own risk. 1.16 EXECUTION OF CONTRACTS A contract document shall be executed by the Department and the Grantee. This document will serve as the official and legal contractual instrument between both parties. This document (“Contract”) will incorporate (by attachments or reference) the terms of this grant program, with any and all addendums, and the applicant’s application, all of which becomes part of the 2026 Kona Low Business Recovery Grant Program 6 Contract. Upon receipt of the Letter of Award and contract documents, the proposer shall have ten (10) days to execute and return the contract documents to the Department. The award of contract may be withdrawn by the Department any applicant is unable to meet contract execution requirements. This Contract shall not be binding or of any force until said Contract has been fully and properly signed by all of the parties thereto. Routing of the Contract within the County may take up to six weeks. A complete set of the fully executed Contract will be sent to the Grantee. 1.17 PAYMENTS Full payment shall be made available to the Grantee upon execution of the contract, and upon receipt of proper invoicing, and other information required from the Grantee under the contract. All such information shall be submitted to the Department of Research and Development through the application portal. 1.18 REPORTING REQUIREMENTS Grantees are required to provide a written final report, via the grant portal, no later than March 31, 2027. The final report shall contain the documented use of funds, invoiced expenditures, and receipts to account for the expenditure of all grant funds. 1.19 PUBLIC INSPECTION All application information shall be held in strict confidence and shall not be revealed or discussed with competitors. Proposals submitted may be reviewed and evaluated by those officials who have a legitimate interest in the matter and by no others. All materials submitted by all proposers become the property of the County. If any material is returned, it will be returned solely at the option of the Director. Information that is considered by the applicant to be proprietary shall be identified by the applicant as such. In evaluating proposals, any content marked “PROPRIETARY,” “CONFIDENTIAL,” or otherwise clearly intended not to be made public WILL NOT be considered, except those dealing with financial resources and conditions or references, existing customers, and the like. Thus, if all content of a proposal is marked as not public information, or a cover document or attachment indicates the entire proposal is proprietary or otherwise restricted, the proposal may be rejected. The Department shall have the option of (1) requesting that sections improperly marked as proprietary be amended, or (2) rejecting the proposal without further action. At the conclusion of the process, resulting in either a contract award or rejection of all proposals, all material except that marked proprietary shall become public information. 2026 Kona Low Business Recovery Grant Program 7 2 CONTRACT PROVISIONS 1. GRANT FUNDS: The Grant Funds will be used by GRANTEE consistent with and pursuant to the County of Hawaiʻi Kona Low Business Recovery Grant Program Guidelines, and all fiscal and audit reporting requirements contained in Section 2-142(a), the Hawai‘i County Code, and as directed by the DEPARTMENT. Grant Funds shall not be used for: • Losses already covered by insurance or other recovery assistance; • Expenses unrelated to storm recovery; • Expansion or improvement costs unrelated to pre-storm conditions; • Owner draws or distributions not supported as payroll; • Penalties, fines, or taxes; • Any fraudulent or undocumented expense; and/or • Used for the purchase of alcohol for consumption. No exceptions shall apply. 2. PAYMENT. Payment shall be made available to the GRANTEE upon execution of the contract, proof of GRANTEE’s eligibility, and other information required from the GRANTEE under the contract. All such information shall be submitted to the Department of Research and Development through its Grant Portal. 3. TERM: The term of the AGREEMENT shall commence as of the effective date of the AGREEMENT and continue to March 1, 2027, unless the AGREEMENT is terminated sooner as hereinafter provided. 4. GRANTEE REPRESENTATIONS AND WARRANTIES. The GRANTEE represents and warrants it is compliant with the following conditions throughout the duration of this contract: • GRANTEE is a non-agricultural business. • GRANTEE is a business operating within the County of Hawaiʻi prior to March 13, 2026. • GRANTEE maintains a physical business location within the County of Hawaiʻi. • GRANTEE has documented physical damage and/or business interruption caused by the March 13–27, 2026 Kona Low events. • GRANTEE has unmet recovery needs not fully covered by insurance or other sources of assistance due to the March 13–27, 2026 Kona Low events. • GRANTEE agrees to use grant funds for: equipment repair or replacement; inventory replacement; temporary relocation costs; rent and utilities; and/or cleanup or water damage. • GRANTEE agrees not to use any public funds for purposes not previously approved by the DEPARTMENT. 2026 Kona Low Business Recovery Grant Program 8 • GRANTEE agrees to provide requested documentation acceptable to the Department in support of the GRANTEE’s use of funds. • GRANTEE shall comply with such other requirements as the DIRECTOR may prescribe to ensure adherence by the GRANTEE with Federal, State, and County laws, and established standards for fiscal and program management. 5. REPORTS. GRANTEE shall prepare and submit to the DEPARTMENT a written final report due no later than March 31, 2027. The final report shall contain the documented use of funds, invoiced expenditures, and receipts to account of the expenditure of all grant funds. [Ref. HCC §2-142] 6. MODIFICATIONS OF AGREEMENT: Any modifications must be made in writing, agreed upon by both parties, and must have the approval of the COUNTY, which shall be made by a written supplemental agreement. All modifications requested by the GRANTEE shall be in writing. 7. DELAY IN PERFORMANCE OF CONTRACT. If any delay in the performance under the Agreement occurs as a result of unforeseeable causes beyond the control and without the fault or negligence of GRANTEE, including but not limited to acts of God, acts of the public enemy, fire, floods, epidemics, quarantine restrictions, strikes, freight embargoes, unusually severe weather, or delays of subcontractors or suppliers arising from unforeseeable causes beyond the control and without the fault or negligence of both GRANTEE and such subcontractors or suppliers, then GRANTEE may be granted an extension of the time for performance corresponding to the delay. No extension of time, however, shall be granted unless a written application therefore stating in detail the cause or causes of delay is filed by GRANTEE with the DEPARTMENT within ten (10) calendar days after the commencement of the delay. No extension of time shall be deemed a waiver of the right of the County to require the completion of the services under the Agreement within the time required herein as so extended by the specific terms of such extension, nor a waiver of right to terminate the Agreement for any other or additional delay not covered by the specific terms of such extension. 8. RIGHT TO AUDIT RECORDS [Ref. HCC §2-142]. The County at reasonable times and places may audit the books and records of a Grantee relating to Grantee's use of the funds granted pursuant to the Agreement. The books and records shall be maintained by GRANTEE. 9. RECORDS, REPORTING, AND FISCAL ACCOUNTABILITY REQUIREMENTS AND PENALTIES [Ref. HCC §2-142]. a. GRANTEE shall follow generally accepted accounting procedures and practices and shall maintain books, records, documents, and other evidence which sufficiently and properly account of the expenditure of County funds. The DEPARTMENT, Director of Finance or County Auditor may request periodic written reports on the use of County funds. 2026 Kona Low Business Recovery Grant Program 9 b. The DEPARTMENT, Director of Finance, or Hawaiʻi County Council may request periodic written reports on the use of County funds. c. The Office of the County Auditor and any of their authorized representatives, shall have the right of access to any of GRANTEE's officers or employees and facilities or place of business, and any book, document, paper, file, and financial, performance and compliance records or any other record, whether electronically or physically kept, that is related to the performance of services or operations under the Agreement in order to conduct an audit or other examination and/or to observe processes, and/or make copies, excerpts, or transcripts for the purposes of monitoring and evaluating GRANTEE's compliance with the terms of the grant agreement, and to verify all costs associated with any claims made under this Agreement. d. In addition to any other remedy provided by law, if the GRANTEE fails to submit the written final report due no later than March 31, 2027, the DIRECTOR shall require the GRANTEE to return all grant funds awarded and deem the GRANTEE ineligible to receive future grant awards for at least the following fiscal year, and for all subsequent fiscal years until such time as that written report is submitted to, and accepted by the Hawaiʻi County Council. e. Should the written final report due no later than March 31, 2027, be deemed by the DEPARTMENT to contain insufficient information, the GRANTEE shall be notified of the deficiencies and shall provide the additional information within thirty days of notice or the GRANTEE will be deemed to be in violation of HCC §2- 142. 10. RIGHT OF THE COUNTY TO TERMINATE: The COUNTY shall have the right to suspend performance under the AGREEMENT or terminate this AGREEMENT in whole or in part at any time by written notice to the GRANTEE. 11. AUTHORITY TO WITHHOLD MONEY DUE OR PAYABLE: The COUNTY may withhold such amounts from the money due or to become payable under the AGREEMENT to the GRANTEE as may be necessary to protect the COUNTY against liability or to satisfy the obligations of the GRANTEE to the COUNTY. 12. RETURN OF GRANT FUNDS. Pursuant to HCC § 2-139(b)(3), in the event the GRANTEE is unwilling or unable to expend the grant funds for the purposes for which the grant is appropriated, the DIRECTOR may direct the return of the full grant amount or the balance of the unexpended funds. 13. INDEMNITY: The GRANTEE shall perform the AGREEMENT as an independent party and shall indemnify and save the COUNTY and its officers and employees harmless from any and all deaths, injuries, losses and damages to persons or property, and any and all claims, demands, suits, action and liability therefore, caused by error, omissions or negligence in the performance of the Agreement by Grantee, agents and/or employees. 2026 Kona Low Business Recovery Grant Program 10 14. AUTHORITY OF THE DIRECTOR: The DIRECTOR shall decide any question or dispute concerning any provision of the AGREEMENT, which may arise during its performance. The DIRECTOR’S decision shall be final and binding upon all parties unless the same is fraudulent or capricious or arbitrary or so grossly erroneous as necessarily to imply bad faith or is not supported by substantial evidence, provided that nothing herein shall be construed as making final and binding any decision of the DIRECTOR on a question of law. Pending final decision of any dispute or question, the GRANTEE shall proceed diligently with the performance under the AGREEMENT in accordance with the decision of the DIRECTOR. 15. LAWS AND REGULATIONS: The GRANTEE shall be responsible for being fully informed of all county, state and federal laws, ordinances, codes, rules and regulations, which in any manner may affect the AGREEMENT and the performance thereof, including but not limited to: a. All sections of the Hawai‘i County Charter and Hawai‘i County Code; b. Chapter 103, Hawai‘i Revised Statutes, as amended, relating to expenditure of public money; c. Chapter 378, Hawai‘i Revised Statutes, as amended, relating to fair employment practices; d. Chapter 489, Hawai‘i Revised Statutes, as amended, relating to discrimination in public accommodations; e. Chapter 396, Hawai‘i Revised Statutes, as amended, relating to occupational safety and health; and f. Chapter 386, Hawai‘i Revised Statutes, as amended, relating to workers’ compensation law. g. Nondiscrimination Clause: Pursuant to Executive Order No. 142, County of Hawaiʻi, dated February 11, 2005, and amended on April 13, 2007, during the performance of the contract, GRANTEE agrees as follows: i. GRANTEE shall comply with all requirements set forth in Federal and State laws and regulations relative to Title VI of the Civil Rights Act of 1964, as amended, which provide for non-discrimination in federally assisted programs. ii. GRANTEE shall not discriminate against any employee or applicant for employment because of sex, pregnancy, race, ancestry/national origin, religion, color, disability, age, marital status, military status, veteran's status, sexual orientation, lactation, arrest and court record, citizenship, or any other classification protected by state or federal law. GRANTEE shall assure that applicants are employed and that employees are treated during employment without regard to sex, pregnancy, race, ancestry/national origin, religion, color, disability, age, marital status, military status, veteran's status, sexual orientation, lactation, arrest and court record, citizenship, or any other classification protected by state or federal law. Such action shall 2026 Kona Low Business Recovery Grant Program 11 include, but not be limited to, the following: employment, upgrading, demotion, or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training. GRANTEE agrees to post in conspicuous places notices to be provided by the contracting officer setting forth the provisions of the nondiscrimination clause. iii. GRANTEE shall, in all solicitations or advertisements for employees placed by or on behalf of GRANTEE, state that all qualified applicants shall receive consideration for employment without regard to sex, pregnancy, race, ancestry/national origin, religion, color, disability, age, marital status, military status, veteran's status, sexual orientation, lactation, arrest and court record, citizenship, or any other classification protected by state or federal law. iv. In the event of GRANTEE's noncompliance with the nondiscrimination clauses of this contract, this contract may be canceled or suspended in whole or in part and GRANTEE may be declared ineligible for further County contracts until such time that GRANTEE by satisfactory evidence, in good faith, ceases such discriminatory practices or procedures. v. If GRANTEE subcontracts any portion of the contract, it shall assure the County that such subcontractor shall abide by the nondiscrimination provisions stated herein and agrees that any subcontractor who is found in violation of such provisions shall subject the principal contractor's contract with the County to be terminated or suspended pursuant to Section iv. above. vi. The County may direct any bidder, prospective contractor or subcontractor to submit a statement in writing signed by an authorized officer, agent, or employee of the contracting party that the signer's practices and policies do not discriminate on the grounds of sex, pregnancy, race, ancestry/national origin, religion, color, disability, age, marital status, military status, veteran's status, sexual orientation, lactation, arrest and court record, citizenship, or any other classification protected by state or federal law, and that the terms and conditions of employment under the proposed contract shall be in accordance with the purposes and GRANTEE shall comply with all such present state and federal laws, ordinances, codes, rules and regulations, and all amendments thereto. If any discrepancy or inconsistency is discovered between this Agreement and any such law, ordinance, code, rule or regulation, the GRANTEE shall forthwith report the same in writing to the County's Director of Human Resources. 16. REMEDIES NOT EXCLUSIVE: The express provision herein of certain measures that may be exercised by the COUNTY for its protection shall not be construed to preclude the COUNTY from exercising any other or further legal or equitable right to protect its interests. 2026 Kona Low Business Recovery Grant Program 12 17. FORUM SELECTION: No action or proceeding involving the AGREEMENT shall be commenced by either party except in the Circuit or District Courts of the Third Circuit, County of Hawaiʻi, State of Hawaiʻi, and no action commenced in such court shall be removed or transferred to any other state or federal court. 18. CONTROLLING LAW. The Agreement is to be governed by the laws of the State of Hawai i. 19. HEADINGS. Article and paragraph headings are inserted for convenience only and do not constitute parts of this Agreement. 20. CODE OF ETHICS: It is mutually agreed that as a condition of the Agreement, GRANTEE shall not employ either on a part-time or on a full-time basis, an employee of the County of Hawai'i in the performance of any of the work required or contemplated by the Agreement, without receiving an opinion by the Board of Ethics that such employment does not violate the County's Code of Ethics. a. No officer, member or employee of the County who exercises any function or responsibilities in connection with this project, shall: i. Participate in any decision relating to the Agreement which affects his personal interests or the interests of any corporation, partnership, or association in which he is directly or indirectly interested; or ii. Have any interest, direct or indirect, in the Agreement or the proceeds thereof. iii. GRANTEE agrees that as a condition of the Agreement, it shall report any possible ethical violation by any employee in connection with the Agreement or the administration thereof. 21. GRANTEE’S FAILURE TO COMPLY WITH ALL CONTRACTUAL CONDITIONS: The GRANTEE’S failure to comply with any and all of the conditions of the AGREEMENT, referenced herein and made a part hereof, may result in the denial or rejection of future funding to the GRANTEE from the COUNTY. 22. CONSTRUCTION OF CONTRACT. The masculine shall be deemed to embrace and include the feminine and the singular shall be deemed to embrace and include the plural whenever required in the context of the Agreement. 23. EXEMPTION. This Grant Program is exempt from Chapter 103D, Hawaii Revised Statutes pursuant to 103D-102(b)(2)(A). 24. PROOF OF LIABILITY INSURANCE. Grantee must provide a Certificate of Liability Insurance (General Liability coverage of $1 million and $50,000 for each occurrence) to the County which expressly states that the County of Hawaiʻi’s an additional insured prior to receiving payment(s). 2026 Kona Low Business Recovery Grant Program 13 25. UNUSED FUNDS. Grantee shall return any grant funds not used by June 30 of the grant contract period to the Finance Director within thirty (30) days after June 30 of the contractual year. 26. SEVERABILITY. In the event that any provision of the Agreement is declared invalid or unenforceable by a court, such invalidity or unenforceability shall not affect the validity or enforceability of the remaining terms of the Agreement.