Explanation
BACKGROUND: This ordinance authorizes the Director of the Department of Development to accept and execute a private grant from Cities for Financial Empowerment Fund (CFE) in an amount up to $90,000.00 under their “Small Business Boost Grant” program to develop and enhance partnerships to integrate Financial Empowerment Center (FEC) financial counseling with local and small businesses and entrepreneurial support systems. This ordinance authorizes the appropriation in an amount up to $90,000.00. This ordinance also authorizes the City to receive an additional $10,000.00 which is separate from the grant above from the Cities for Financial Empowerment Fund as a stipend for being a Financial Empowerment Center “Expert Mentor” as we will be matched with a mentee and this is compensation for being a mentee for one-and-a-half years. This revenue will be received as miscellaneous revenue within the general fund.
This ordinance also authorizes the Director of the Department of Development to enter into a not-for-profit service contract with Jewish Family Services (a not-for-profit agency) to provide one-on-one financial counseling services to clients referred by the Entrepreneurial Support organizations in an amount up to $30,000.00
This ordinance also authorizes the Director of the Department of Development to enter into grant agreements with the Entrepreneurial Support Organizations (all not-for-profit agencies) such as Zoras House Inc., Womens Small Business Accelertor Inc., Columbus Compact Corporation, and Columbus State Community College to provide operational support in order to refer clients to the Financial Empowerment Center to connect small business owners to personal and business financial counseling.
Small businesses are critical to the success of the local economy, providing employment opportunities, drawing in talent, and inspiring innovation. Small business ownership is also a valuable pathway for wealth growth. This is one not available for all people in Columbus due to limited awareness of resources available to small businesses, a great need for post-launch support, and many support organizations and capital providers struggling to reach small businesses and underserved neighborhoods.
Small business owners often rely on personal finances and familial financial support to bring their business to life. When capital or loans are needed, accessing these funds to launch and support a small business can be difficult, particularly for women and women of color. Limited networks, bias, and discrimination are often barriers to accessing capital for a small business. Accessing capital also requires stable personal finances, an additional barrier.
There are a range of programs in Columbus to support building personal financial health as well as programs to support new entrepreneurs, but they often do not intersect. The integration of these services will close the gap between personal and business finance that many women face.
The Cities for Financial Empowerment Fund recognizes the disconnection between services and launched the Small Business Boost Grant to provide local Financial Empowerment Centers with the funds, training, and technical support to close the gap between personal and business finances that many women face. This grant will provide the necessary support to continue to fund one-on-one financial counseling as a free public service and it will help position the FEC to provide additional support to small businesses.
This legislation is submitted as an emergency in order to have the funding available to continue the support of the FEC and to provide operating support to those non-profits that will be assisting in providing referrals to the FEC to further grow the support of small business owners and to complete the work during the term of the grant. Jewish Family Services a (not-for-profit agency) currently administers the FEC on behalf of the City and will be administering this portion of the program as financial counseling service cannot be provided by existing city employees. The four other not-for-profit agencies which the City will be will be providing operational support so that they can make the referrals of small business owners to Jewish Family Services as they are boots on the ground with the small business community and are able to refer those business to the FEC to receive the financial counseling that is needed for their success and that cannot be provided by existing city employees.
CONTRACT COMPLIANCE: Jewish Family Services contract compliance CC-006079 expires 09/07/2025
Zoras House contract compliance number CC-043278 expires 03/17/2027
Womens Small business Accelerator Inc contract compliance number CC-029959 expires 03/04/2027
Columbus Compact Corporation contract compliance number CC-032010 expires 08/05/2026
Columbus State Community College contract compliance number CC-004263 expires 03/14/2027
FISCAL IMPACT: This legislation requests approval of the Auditor’s Office to appropriate up to $90,000.00 within the Private Grant Fund (Fund 2291), grant number to be determined, for this grant. Funding from this grant will be distributed to the City in three tranches: sixty percent (60%) after execution of the grant agreement (Spring 2025), thirty percent (30%) upon receipt and approval of the interim report, and the remaining ten percent (10%) will be paid upon receipt of the final report and documentation of at least ninety percent (90%) of the grant funds have been disbursed along with a plan for spending the remainder of the grant funds within two (2) months, if not already spent.
Title
To authorize the Director of the Department of Development to accept and execute a private grant from Cities for Financial Empowerment Fund (CFE) in an amount up to $90,000.00 under their “Small Business Boost Grant” program; to authorize the appropriation and expenditure in an amount up to $90,000.00 which will be reimbursed upon receipt of the grant funds at various stages of the process; to authorize the Director of the Department of Development to execute a not-for-profit service contract with Jewish Family Services in an amount up to $30,000.00 and be effective as of January 1, 2025; to authorize the execution of the grant agreements with the Entrepreneurial Support Organizations (all not for profit agencies) listed above each in the amount of $15,000.00 effective March 1, 2025; and to receive an additional $10,000.00 as revenue for being deemed an “Expert Mentor” by the CFE which will be deposited into the departments general fund budget as miscellaneous revenue;and to declare an emergency. ($90,000.00)
Body
WHEREAS, the Department of Development seeks to accept and execute a private grant from The Cities for Financial Empowerment Funds (CFE) in an amount up to $90,000.00 under their “Small Business Boost Grant” program to develop and enhance partnerships to integrate the Financial Empowerment Center (FEC) financial counseling with local and small businesses and entrepreneurial support systems and the term of the grant is eighteen (18) months; and
WHEREAS, this grant funding will be used for operational support which includes personnel and other miscellaneous costs associated with providing financial counseling and support; and
WHEREAS, the expenditures associated with the FEC contract is authorized beginning January 1, 2025 and the Entrepreneurial Supporting Organizations contract is authorized beginning March 1, 2025; and
WHEREAS, it is necessary to the appropriation and expenditures associated with this grant in order to provide the support and financial counseling services needed for these small businesses; and
WHEREAS, the city has been deemed an “Expert Mentor” by the CFE and will receive an additional $10,000.00 separate from the above grant for being matched with a mentee for the next year and a half and will be deposited within the Department General Fund Revenue; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Development in that it is immediately necessary to authorize the Director to accept and execute a grant from Cities for Financial Empowerment and to enter into a not-for-profit services contract with Jewish Family Services that administers the Cities for Financial Empowerment Fund on behalf of the City in order to have the funding available to continue the support of the FEC and to provide operating support to those non-profits that will be assisting in providing referrals to the FEC to further grow the support of small business owners and to complete the work during the term of the grant, all for the immediate preservation of the public health, peace, property, safety and welfare; and NOW THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. The Director of Department of Development is authorized to accept and execute a private grant from Cities for Financial Empowerment Fund (CFE) in an amount up to $90,000.00 under their “Small Business Boost Grant” program to develop and enhance partnerships to integrate Financial Empowerment Center (FEC) financial counseling with local and small businesses and entrepreneurial support systems and the term of the grant is eighteen (18) months.
SECTION 2. That from the unappropriated monies in Fund 2291 (Private Grant Fund) and from all monies estimated to come into said fund from any and all sources and unappropriated for any other purpose during the grant period, up to $90,000.00 shall be appropriated upon receipt of an executed grant agreement within Fund 2291 (Private Grant Fund), Dept-Div 4401 (Admin), Grant number to be determined, per the accounting codes attached to this ordinance.
SECTION 3. That the Director of the Department of Development is authorized to execute a not-for-profit service contract with Jewish Family Services in an amount up to $30,000.00 and be effective as of January 1, 2025; to authorize the execution of the grant agreements with the Entrepreneurial Support Organizations such as Zoras House Inc., Womens Small Business Accelertor Inc., Columbus Compact Corporation, and Columbus State Community College (all which are not for profit agencies) each in the amount of $15,000.00 and are to be effective March 1, 2025.
SECTION 4. The expenditure of funds in an amount up to $90,000.00 is authorized within fund 2291 per the accounting codes in the attachment to this ordinance.
SECTION 5. That the monies appropriated in the foregoing Section 2 shall be paid upon the order of the Director of the Department of Development and that no order shall be drawn or money paid except upon voucher, the form of which shall be approved by the City Auditor.
SECTION 6. At the end of the grant period, any repayment of unencumbered balances required by the grantor is hereby authorized and any unused City match monies may be transferred back to the City fund from which they originated in accordance with all applicable grant agreements.
SECTION 7. That the Department of Development will receive an additional separate from the above grant in an amount of $10,000.00 in revenue from the CFE for being an “Expert Mentor” and partnering with a mentee for the next year and a half and the funds will be deposited into the general fund.
SECTION 8. Funds are hereby deemed appropriated and expenditures and transfers authorized to carry out the purposes of this ordinance and the City Auditor shall establish such accounting codes as necessary.
SECTION 9. That the City Auditor is authorized to make any accounting changes to revise the funding source for all contracts or contract modifications associated with this ordinance.
SECTION 10. That for the reasons stated in the preamble hereto, which is hereby made a part hereof, this ordinance is hereby declared to be an emergency measure and shall take effect and be in force from and after passage and approval by the Mayor, or ten days after passage if the Mayor neither approves nor vetoes the same.