Explanation
BACKGROUND: This legislation authorizes the expenditure of $3,300,000.00 from the CARES Act fund and authorizes the Director of the Department of Development to modify a contract with Rev 1 Ventures in an amount up to $3,300,000.00 for the purpose of deploying grants and loans and providing technical assistance to Columbus small businesses impacted by the COVID-19 pandemic as part of the department’s COVID-19 Small Business Response and Recovery Program.
To assist Columbus small businesses in retooling from the economic impact of COVID-19, the department’s COVID-19 Small Business and Recovery Program offers grants, loans, and technical assistance for Columbus' small business impacted by the COVID-19 pandemic under the following categories:
• Financial Relief - To provide financial assistance to existing small businesses, including enterprises operating in Low and Moderate Income (LMI) areas of the City of Columbus, in the form of grants and loans, with the goal of job retention.
• Personal Protective Equipment (PPE) Procurement Assistance - To provide financial support to assist existing small businesses in securing PPEs and/or making necessary COVID-19 health/safety improvements required to re-open their businesses in the City of Columbus.
• Training and Technical Assistance - Provide pre- and post-application training and technical support to grant/loan applicants and recipients of existing small businesses seeking to maintain operations and retain existing and potentially add new employees in the City of Columbus.
Rev 1 Ventures will deploy grant and loan dollars, and provide technical assistance, to Columbus small business enterprises selected by a review committee consisting of members of the Columbus Small Business Agenda-Working Committee #3.
City Council passed ordinance 1277-2020 on June 1, 2020, to provide $4.3 million for this program. Since the program began, it was determined that the need is greater than originally anticipated. The Department of Development requests an addition $3.3 million be made available for this program.
Original contract $4,300,000.00 ord. 1277-2020 PO231043
Modification 1 $3,300,000.00
Total Contract Amount $7,600,000.00
The services included in this contract cannot be provided by existing city employees because of the deficiency in the existing infrastructure and expertise within the Office of Small Business and Entrepreneur Development to provide the necessary underwriting and technical assistance counseling to the large number of applicants, and eventual 500+ grant/loan recipients of the City of Columbus COVID-19 Small Business Response and Recovery Fund. The goal of the Columbus Small Business Agenda, endorsed by Columbus City Council, was to strategically rely on the existing infrastructure and expertise of the qualified partners within the City’s small business ecosystem to more broadly and positively impact the small business environment of the City. This is the first major initiative since the adoption of the Columbus Small Business Agenda that will allow Development the ability to utilize this network to have the broadest and most expedient reach in deploying financial assistance to vulnerable small businesses around the City adversely impacted by the COVID-19 pandemic.
Emergency action is requested to ensure that Rev 1 Ventures can receive the dollars available to immediately deploy loans to support small businesses.
CONTRACT COMPLIANCE: the vendor number is 011852 and contract compliance expires 5/18/2022.
FISCAL IMPACT: Funding is provided to the City of Columbus from the Coronavirus Aid, Relief and Economic Security (CARES) Act passed by Congress and signed into law March 27, 2020.
Title
To authorize the Director of the Department of Development to modify a contract with Rev 1 Ventures in an amount up to $3,300,000.00 for the purpose of deploying grants and loans and providing technical assistance to Columbus small businesses impacted by the COVID-19 pandemic as part of the department’s COVID-19 Small Business Response and Recovery Program; to authorize the expenditure of $3,300,000.00 from the CARES Act fund; and to declare an emergency. ($3,300,000.00)
Body
WHEREAS, the director of the Department of Development would like to modify an agreement with Rev 1 Ventures to deploy grants and loans and provide technical assistance to Columbus small businesses impacted by the COVID-19 pandemic, at the direction of the Columbus Small Business Agenda-Working Committee #3; and
WHEREAS, there exists a deficiency in the existing infrastructure and expertise within the Office of Small Business and Entrepreneur Development to provide the necessary underwriting and technical assistance counseling to the large number of applicants and eventual 500+ grant/loan recipients of the City of Columbus COVID-19 Small Business Response and Recovery Fund; and
WHEREAS, the COVID-19 pandemic has resulted in severe economic hardship to the Columbus small business community; and
WHEREAS, expenditure of CARES Act funding for loans, grants, and technical assistance is necessary to address the severe economic hardship caused by the COVID-19 public health emergency; and
WHEREAS, such expenditure of funds has not been previously accounted for in the 2020 budget; 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 modify the contract with Rev 1 Ventures so it can immediately deploy loans to support small businesses, such immediate action is necessary for the preservation of the public health, peace, property, safety and welfare; NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the Director of the Department of Development is hereby authorized to modify a contract with Rev 1 Ventures, in the amount up to $3,300,000.00, for the purpose of deploying grants and loans and providing technical assistance to Columbus small businesses impacted by the COVID-19 pandemic as part of the department’s COVID-19 Small Business Response and Recovery Program.
SECTION 2. That for the purpose stated in Section 1, the expenditure of $3,300,000.00 or so much thereof as may be needed, is hereby authorized in Fund 2207 (CARES Act), Dept-Div 44-02 (Economic Development), in object class 03 (Services) per the accounting codes in the attachment to this ordinance.
SECTION 3. That this contract is awarded in accordance with the relevant provisions of City Code Chapter 329 relating to not-for-profit service contracts.
SECTION 4. That the funds necessary to carry out the purpose of this ordinance are hereby deemed appropriated, and the City Auditor shall establish such accounting codes as necessary.
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. 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.