Explanation
BACKGROUND: This legislation authorizes the Director of the Department of Development to enter into a not-for-profit service contract with the Tony R. Wells Foundation to provide fiscal agent and other services as a partner in the City of Columbus Small Business Capacity-Building Micro Grants Program.
The City of Columbus seeks to create the Small Business Capacity-Building Micro Grants Program, a pilot grant program to support small businesses at a stage of growth. The program is designed to target businesses who need cash assistance to support the purchase of one or more tangible, durable assets that will further them on the path to elevating their business to the next level. To be eligible, businesses must:
• Be in good standing with the City of Columbus;
• Have a physical presence (business address) in the City of Columbus;
• Have no more than five (5) employees, including the business owner(s);
• Be positioned for or in a stage of growth;
• Not have received any financial assistance from the City of Columbus at any time on or after January 1, 2022; and
• Be actively counseled by a pre-approved entrepreneurial service provider.
The Department of Development may add eligibility requirements to this list as appropriate given the scope and goals of the grant program. The Department of Development shall select and pre-approve entrepreneurial service providers to qualify businesses as eligible based on the scope and goals of this program. The maximum grant for this micro-grant program shall be $5,000.00.
The not-for-profit service contract will include a fee to the Tony R. Wells Foundation for administration expenses. To ensure that grants are disbursed in an expedient manner, the Department of Development shall issue all funds associated to the Wells Foundation in advance of program administration and grant disbursement.
The mission of the Tony R. Wells Foundation is to “Create value for the community by developing stronger nonprofit leaders and investing in the next generation of social innovations”. The Wells Foundation focuses on creating value for the community through social innovation, impact investing, and leadership development. Since 2001, the Tony R. Wells Foundation has worked with hundreds of non-profits and start-up social entrepreneurs to help with fiscal management, business plans, organizational structure, social innovation, impact investing, and leadership development. The Tony R. Wells Foundation was named “Foundation of the Year” in 2016 by the Association of Fundraising Professionals.
The services included in this not-for-profit service contract cannot be provided by existing city employees because these services are beyond the City’s current staffing capacity to provide.
Emergency action is requested in order to mitigate any negative impact on the planning processes of small business owner recipients. Due to the size of this grant program, applications are expected to come in quickly. The review committee will make all efforts to process and approve applications in an expedient manner in order to avoid any delay in notifying small business owners. Similarly, the Wells Foundation will quickly process applications to send grants to small business owners as quickly as possible. A delay in this process could create confusion, a sense of unreliability, or a gap in expected funding for small business owners.
FISCAL IMPACT: Funding is available within the Job Growth subfund.
Title
To authorize the Director of the Department of Development to enter into a not-for-profit service contract with the Tony R. Wells Foundation in an amount not to exceed $500,000.00 to provide fiscal agent and other services as a partner in the City of Columbus Small Business Capacity-Building Micro Grants program; to authorize the advancement of funds on a pre-determined schedule during the term of the agreement; to authorize an appropriation and expenditure within the Job Growth subfund; and to declare an emergency. ($500,000.00) (AMENDED BY ORD. 2827-2023 PASSED 10/16/2023) BA
Body
WHEREAS, the Tony R. Wells Foundation is a national leader in providing non-profits and start up social entrepreneurs with fiscal management, business plans, organizational structure, social innovation, impact investing, and leadership development; and
WHEREAS, Columbus City Council seeks to promote good-paying jobs through the growth of the city’s small businesses and entrepreneurs to promote pathways towards wealth equity, entrepreneurial innovation, and the creation of local jobs; and
WHEREAS, the Small Business Capacity-Building Micro Grants program will support many diverse entrepreneurs across Columbus’ communities and industries by propelling them on their path towards growth; 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 enter into a not-for-profit service contract with the Tony R. Wells Foundation in order to quickly respond to needs within the Columbus small-business community and to avoid confusion and gaps in anticipated funding for small business owners; NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the Director of the Department of Development is authorized to enter into a not-for-profit service contract with the Tony R. Wells Foundation in an amount not to exceed $500,000.00 to provide fiscal agent and other services as a partner in the City of Columbus Small Business Capacity-Building Micro Grant Program and to authorize the advancement of funds on a pre-determined schedule during the term of the agreement.
SECTION 2. That the City Auditor be and is hereby authorized and directed to appropriate $500,000.00 in Fund 1000 (General Fund), Subfund 100015 (Jobs Growth Subfund), Dept-Div 4402 (Economic Development), in Object Class 03 (Services), per the accounting codes in the attachment to this ordinance.
SECTION 3. That the expenditure of $500,000.00 or so much thereof as may be needed pursuant to the action authorized in SECTION 1 of this ordinance, is authorized in Fund 1000 (General Fund), Subfund 100015 (Jobs Growth Subfund), Dept-Div 4402 (Economic Development), in Object Class 03 (Services), per the accounting codes in the attachment to this ordinance.
SECTION 4. That this contract is awarded in accordance with the relevant provisions of City Code Chapter 329 relating to not-for-profit service contracts.
SECTION 5. 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 6. 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 its passage and approval by the Mayor or ten days after passage if the Mayor neither approves nor vetoes the same.