Explanation
BACKGROUND: This legislation authorizes the Director of Development to enter into a not-for-profit service contract with the Tony R. Wells Foundation in an amount up to $4,500,000.00 of federal American Rescue Plan Act (ARPA) funds to provide fiscal agent and other services as part of the 2021 Columbus-Franklin County Small Business COVID-19 Response and Recovery Program and to pay for expenses starting March 3, 2021.
Ordinance 1201-2021 authorized the City of Columbus to accept and appropriate approximately $187,030,138.00 of federal American Rescue Plan Act (ARPA) funds as signed into law by the President of the United States on March 11, 2021.
Similar to the 2020 Columbus-Franklin County COVID-19 Small Business Response and Recovery Program implemented by the City and Franklin County in 2020 using CARES Act funds, the department (and the county) will partner with the Wells Foundation and Columbus State Community College’s Small Business Development Centers (SBDC) to provide economic support to small businesses negatively impacted by COVID-19 using ARPA funds. SBDC will facilitate the city-county program and the Wells Foundation, acting as a contractor, will hold and disburse the funds to eligible businesses (as defined by U.S. Treasury). A separate ordinance will be put forth to enter into an agreement with SBDC.
The not-for-profit service contract will include up to a 10% fee paid to the Wells Foundation for administration expenses.
It is expected that the guidance from the U.S. Department of Treasury will be modified while this not-for-profit service contract is in effect and it is requested that the Director of Development be given the authority to modify the terms and conditions of the not-for-profit service contract without seeking additional Council approval in order to align with the most current version of the laws, regulations, and guidance.
The mission of the Wells Foundation to “Create value for the community by developing stronger...
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