COMMUNITY DEVELOPMENT BLOCK GRANT
SMALL BUSINESS STABILIZATION PROGRAM
GUIDELINES & APPLICATION
Funding is limited. Awards will be on a first-come, first-eligible basis
PROGRAM GUIDELINES
Summary
Community Development Block Grant (CDBG) is a federally funded program through the U.S. Department of Housing and Urban Development (HUD). City CDBG funds may be used to expand economic opportunities for low-and moderate-income persons. CDBG funds are targeted to areas of the City that have the highest concentrations of low and moderate income persons. In addition, these areas generally coincide with Richland's older residential neighborhoods and the central business district.
CDBG Target Areas are those census tracts within the City where over 51% of the individuals have incomes of 80% of the median income or less. These are, by and large, areas where a large number of Richland’s lower income people live.
Purpose
The Richland Small Business Stabilization Program (SBSP) is designed to promote economic stability by providing immediate relief in the form of a one-time forgivable loan for essential operating expenses to Richland small businesses negatively impacted by COVID-19.
The goals of this program are :
Help small businesses survive the COVID-19 crisis.
Retain employment and continue to pay employees.
Maintain the provision of goods and services for Richland residents.
National Objective
The CDBG National Objective for Economic Development projects is Low-Mod Jobs Creation and Retention – (LMJ), 24 CFR 570.208(a)(4).
Funding
The maximum CDBG award will be $10,000 upon approval and in compliance with CDBG criteria.
Eligibility
A business must meet ALL of the following criteria to be eligible to apply:
- Must be a private, for profit business. *Independent Contractors are not eligible for this program.
- Business and/or any owner may not be suspended, debarred, proposed for debarment, declared ineligible, or voluntarily excluded from participation in federal transactions.
- Businesses must have less than 20 FTE (full-time equivalent employees.)
- The business must have a physical storefront establishment within Richland's city limits.
- Businesses must have a current Richland business license.
- The business must have experienced a negative impact due to COVID-19.
- No national chains. National chains are defined as franchises/for-profit corporations; except in the case where the franchisee or brand has a Richland-based owner.
- Operating for at least 24 months.
- Business may NOT be delinquent in State and/or Federal licensing and filings.
If CDBG funds are awarded to a business, the business must meet the following requirement:
- Business will create/retain at least one full-time or full-time equivalent (40 hours/week) low or moderate-income permanent job (LMI Job) within 12 months. Moderate-income means less than or equal to 80% of the Area Median Income (AMI). See Section 4 of the application for income and details on how to meet the HUD National Objective for jobs.
- If business is retaining LMI job(s) – business must demonstrate clear objective evidence that permanent LMI job(s) would be lost without CDBG assistance.
Terms
Loan will be forgiven over a one-year period as the business meets the required LMI job creation/retention requirement as outlined in the written agreement.
Eligible Uses (CDBG funds can be used for):
Rent
Mortgage
Utilities
Payroll
Other operating expenses
Ineligible Uses (CDBG funds cannot be used for):
Loan Payments to Small Business Assoc. (SBA)
Governmental Uses or Expenses
Political Activities
Personal Property
Savings
Application Process
Applicants must complete and submit a funding application to the City’s Development Services Department. Applications will be reviewed on a first-come, first-eligible served basis. All required supporting documentation MUST be submitted with completed application in order to be considered for CDBG funding.
Applicants will be notified of their application’s approval or rejection and funding amount, by Development Services staff. Amount of funding awarded to a business will be based on need. Once program funding is exhausted, other qualified applicants will be placed on a waiting list if/when additional funds become available.
Review Process
The following priorities will be considered when awarding funds:
- The business provides jobs to low-income individuals.
- The number of jobs that the business sustains during a normal business cycle (pre COVID-19 levels).
- The business demonstrates that it has lost a significant share (50% or more) of revenue due to the COVID-19 pandemic.
- The business demonstrates a strong chance of remaining open post COVID-19.
- The business has operated consistently for two years.
- Priority will be given to businesses located within low/moderate census tracts as defined by HUD.
- All eligibility criteria has been met.
**REQUIRED DOCUMENTS**
You will not be able to leave and return to your application. Ensure you have the following documents ready to upload before begining this form:
(1) Business License
(2) Proof of Insurance
(3) Financial Statement that includes (a) Income Statement, (b) Balance Sheet, (c) Statement of Cash Flows
(4) Current signed IRS Tax Return
You will also need the followng information to fill out the form:
DUNS number, UBI number and Tax ID/EIN
