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Home My WebLink AboutMemo - Mail Packet - 12/22/2020 - Memorandum From Josh Birks Re: Small Business Assistance Program - Summary Economic Health Office 222 LaPorte Avenue PO Box 580 Fort Collins, CO 80522 970.416.4349 fcgov.com MEMORANDUM DATE: December 17, 2020 TO: Mayor and Councilmembers THRU Darin Atteberry, City Manager; and Jacqueline Kozak-Thiel, Chief Sustainability Officer CC: Travis Storin, Interim Chief Financial Officer; and SeonAh Kendall, City Recovery Manager FROM: Josh Birks, Economic Health and Redevelopment Director RE: SMALL BUSINESS ASSISTANCE PROGRAM – SUMMARY This memorandum provides a detailed summary of the Small Business Assistance Program (SBAP) administered by the Economic Health Office, providing relief to small businesses impacted by the COVID-19 pandemic. BOTTOM-LINE: In support of Council’s priorities Small Business Support and Strategies that Create Community Jobs, EHO leveraged $1.9 million dollars of the City’s Coronavirus Relief Fund (CVRF) dollars to support small businesses impacted by COVID-19 and the associated public health orders. These funds were disbursed across three rounds with final payments sent to businesses on December 10, 2020. A total of 205 businesses received awards that ranged up to $15,000. Furthermore, the program was able to adapt just as Larimer County returned to Level Red and provide an additional $5,000 in assistance to all restaurants and food/beverage businesses in the program. OVERVIEW: The attached document provides a detailed analysis of the businesses supported by the SBAP. The SBAP program accounted for 76 percent of the $2.5 million allocated to support businesses from CVRF. Other programs included: training to support business enforcement of mask orders, utility bill assistance, the Keep NoCo Open marketing campaign, and others. Below are a few highlights of the program:  205 businesses received direct assistance (no need to repay) for an average payment of $9,259.  71 percent of the businesses employed between 1 and 10 employees.  65 percent of the businesses have been open for six years or longer.  52 percent of the awardees are food and beverage or retail businesses.  61 percent of the awardees have annual revenue below $500,000.  In aggregate, the 205 businesses that received assistance lost over $31.4 million in revenue between March and October of 2020 compared to the same time in 2019. DocuSign Envelope ID: CDC0EEE5-6F6A-4AA9-96AA-A6FD714D05BB Additional data will be available regarding the impact on business operations, more detailed demographics of business owners, and other details at the end of January 2021. All businesses are required to complete a program participation survey to be distributed in mid-January. Attachment:  Small Business Assistance Program Data Results, December 11, 2020 DocuSign Envelope ID: CDC0EEE5-6F6A-4AA9-96AA-A6FD714D05BB SMALL BUSINESS ASSISTANCE PROGRAM DATA RESULTS December 11, 2020 CONTACT Josh Birks, Economic Health & Redevelopment Director jbirks@fcgov.com DocuSign Envelope ID: CDC0EEE5-6F6A-4AA9-96AA-A6FD714D05BB fcgov.com/business Page | 1 EXECUTIVE SUMMARY The Coronavirus Aid, Relief, and Economic Security (CARES) Act was signed into law on March 27, 2020. The CARES ACT established a $150 billion Coronavirus Relief Fund, which was distributed to communities throughout the United States. The City of Fort Collins received $9 million in funding. These funds are supporting pandemic response and recovery, with more than two thirds of the funding going to small businesses, nonprofits, and local community programs. The purpose of the City of Fort Collins Small Business Assistance Program (SBAP), administered by the Economic Health Office, is to provide relief to small businesses impacted by the COVID-19 pandemic. The program provided funding to each individual business to help offset the significant, temporary loss of revenue during this pandemic and to assist businesses in sustaining through impacts to their business from public health orders. The City supported three rounds of funding to ensure funds were spent where most needed. Round 1 – focused on small businesses of less than twenty employees with less than $2 million in annual revenue. To be eligible, businesses had to be located in the City of Fort Collins, in operation for at least one year, incurred a 20% revenue loss year-over-year, and have received less than $50,000 in other COVID-related funding. The highest award amount for Round 1 is $15,000. Round 2 – same eligibility requirements as Round 1 but may have received more than $50,000 in other COVID-related funding. The highest award amount for Round 2 for a business is $12,500. This round also included Sole Proprietor businesses with the same eligibility. The highest award amount for Round 2 for a sole proprietor is $4,500. Round 3 – All food and beverage businesses regardless of number of employees, annual revenue and COVID relief, but still must meet the 20% revenue loss requirement. The award amount for all approved applicants in round 3 is $10,000 DocuSign Envelope ID: CDC0EEE5-6F6A-4AA9-96AA-A6FD714D05BB fcgov.com/business Page | 2 Once all applications for all Rounds were reviewed, the City was able to increase the initial award amounts of food and beverage businesses with a $5,000 bonus, as well as the top scoring applicants with a $3,000 bonus (in all cases total award could not exceed revenue loss). FUNDING SUMMARY  55% of approved applicant businesses received a bonus.  The average award over all rounds is $9,259. Approved Applications Initial Award Bonus Award Total Award Highest Award Average Award Round 1 77 $666,073 $181,205 $847,278 $15,000 $11,004 Round 2 69 $482,530 $166,000 $648,530 $12,500 $9,399 Sole P 30 $112,369 $0 $112,369 $4,500 $3,746 Round 3 29 $145,000 $145,000 $290,000 $10,000 $10,000 205 $1,405,972 $492,205 $1,898,177 $9,259 Bonus Awards Approved Applications Bonus Award Total Bonus Awards Food and Beverage 77 $5,000 $385,000 High Score Awards 36 $3,000 $107,205 113 $492,205 DocuSign Envelope ID: CDC0EEE5-6F6A-4AA9-96AA-A6FD714D05BB fcgov.com/business Page | 3 AWARDED BUSINESSES DEMOGRAPHICS A total of 205 businesses received SBAP funding totaling $1.9M. Reported revenue loss for these businesses for the months March thru October of 2020 compared to those months in 2019 is $31.4M. SIZE 71% of businesses have 1-10 employees; 6% have 21 or more. YEARS IN BUSINESS 65% of the businesses have been in business six years or longer. DocuSign Envelope ID: CDC0EEE5-6F6A-4AA9-96AA-A6FD714D05BB fcgov.com/business Page | 4 INDUSTRY 52% of awardees are food and beverage or retail businesses. Food and beverage businesses are:  38% of total awardees;  47% of total award dollars;  67% of all reported revenue loss $. DocuSign Envelope ID: CDC0EEE5-6F6A-4AA9-96AA-A6FD714D05BB fcgov.com/business Page | 5 ANNUAL REVENUE 61% of awardees have annual revenue below $500,000. OTHER FINANCIAL ASSISTANCE 13% of awardees have received no federal funding to-date. Most businesses applied for more than one source of federal funding. PPP = Paycheck Protection Program EIDL – Economic Injury Disaster Loan SBA – Small Business Assistance DocuSign Envelope ID: CDC0EEE5-6F6A-4AA9-96AA-A6FD714D05BB fcgov.com/business Page | 6 STATUS OF BUSINESS OPERATIONS Of the Fort Collins businesses that received awards, 3% are temporarily closed. These businesses are theatres, music production (the Music District is currently closed) and others that go to homes to do business. COVID IMPACTS TO BUSINESSES When asked “What are the impacts to your business from COVID-19?” here is how businesses responded: DocuSign Envelope ID: CDC0EEE5-6F6A-4AA9-96AA-A6FD714D05BB fcgov.com/business Page | 7 BUSINESS REVENUE LOSS Reported revenue loss for all awarded businesses for the months March thru October of 2020 compared to those months in 2019 is $31.4M. The average revenue loss was 45% compared to the same period last year, with 22% reporting greater than 60% revenue loss. DocuSign Envelope ID: CDC0EEE5-6F6A-4AA9-96AA-A6FD714D05BB