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Resolution 2020-25RESOLUTION NO. 2020-25(R) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WYLIE, TEXAS, ESTABLISHING A SMALL BUSINESS ASSISTANCE PROGRAM TO PROVIDE IMMEDIATE, SHORT-TERM FINANCIAL AID TO QUALIFIED SMALL BUSINESSES IN THE CITY OF WYLIE; PROVIDING PROGRAM AND APPLICATION ELIGIBILITY CRITERIA AND OTHER REQUIREMENTS; APPROPRIATING $301,000 TO ESTABLISH THE PROGRAM; DELEGATING AUTHORITY TO THE CITY MANAGER TO ADMINISTER THE PROGRAM; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City of Wylie, Texas is a Texas municipality with a population of 50,000 or more operating under a home -rule charter; and WHEREAS, in December 2019, a novel coronavirus, now designated SARS-Co V2 which causes the disease COVID-19, was detected in Wuhan, China; and WHEREAS, President Donald J. Trump declared a State of National Emergency for the United States of America on March 13, 2020 in response to the spread of COVID-19; and WHEREAS, on March 13, 2020, Texas Governor Greg Abbott declared a statewide public health disaster; and WHEREAS, on March 16, 2020, Mayor Eric Hogue issued a declaration of local disaster for public health emergency for the City of Wylie for a period of seven (7) days; and WHEREAS, on April 2, 2020, the City Council adopted Ordinance No. 2020-26, continuing and extending the Mayor's amended declaration of local disaster for public health emergency to help abate the public health threat resulting from the COVID-19 pandemic; and WHEREAS, the COVID-19 pandemic has caused closures of and limitations on local businesses; and WHEREAS, some local businesses in the City of Wylie do not currently have an online presence which would assist them in commercial activity during this state of disaster; and WHEREAS, Chapter 380 of the Texas Local Government Code allows municipalities to establish economic development programs for making grants of public money to promote local economic development and to stimulate business and commercial activity in the municipality; and Resolution No. 2020-25(R) — Small Business Assistance Program WHEREAS, the City Council of the City of Wylie, Texas recognizes the economic strain the COVID-19 pandemic is causing its local businesses, and desires to establish a stimulus program to provide limited financial assistance to small businesses located within the city limits; and WHEREAS, the City Council finds that establishing this program and awarding grants to such small businesses will serve the public health, safety and welfare of the citizens of the City of Wylie and the interests of the City of Wylie and its small business community. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF WYLIE, TEXAS: SECTION 1. That the City of Wylie desires to establish and administer a small business assistance program pursuant to Chapter 380 of the Texas Local Government Code to provide immediate, short-term financial assistance in the form of grants to qualified businesses located within the city limits of the City of Wylie. SECTION 2. That the criteria set forth in Exhibit "A" shall establish program and application requirements and determine a business's eligibility to receive financial assistance under the program. SECTION 3. That the City Manager of the City of Wylie, Texas is directed to administer the small business assistance program and is authorized to make grants that comply with the program requirements, as set forth herein, and is authorized to take any and all other actions he deems necessary to administer the program consistent with the program requirements set forth herein. A five member committee consisting of a representative from the City Manager's office, the City of Wylie Finance Depadment, the City of Wylie Economic Development Corporation, the Downtown Merchants Association, and the Wylie Chamber of Commerce will verify the complete and eligible application prior to the issuance of financial assistance. SECTION 4. That the City shall appropriate the sum of $301,000 in the General Fund Combined Services budget to establish the small business assistance program consisting of a maximum of $51,000 for sole proprietorships, $50,000 for large businesses and $200,000 for other businesses. SECTION 5. That each qualified business is eligible to receive a one-time grant as follows: Sole Proprietorship — up to $1,500 each A sole proprietorship is defined as an unincorporated business owned by a single person who is personally responsible for all debts of the business. Resolution No. 2020-25(R) — Small Business Assistance Program Large Business (26-50 employees) — up to $5,000 each Other Businesses (25 or fewer employees) — up to $5,000 each SECTION 6. That should any section, subsection, sentence, clause or phrase of this Resolution be declared unconstitutional and/or invalid by a court of competent jurisdiction, it is expressly provided that any and all remaining portions of this Resolution shall remain in full force and effect. The City Council hereby declares that it would have passed this Resolution, and each section, subsection, clause and phrase thereof regardless of whether any one or more sections, subsections, sentences, clauses or phrases may be declared unconstitutional and/or invalid. SECTION 7. That this Resolution shall take effect immediately from and after its passage. DULY PASSED D APPROVED BY T CITY COUNCIL OF T CITY OF IE, TE S, ON THIS THE 28TH DAY OF AP ' L 2020. ATTEST: Stephanie Storm, City Secretary Resolution No. 2020-25(R) — Small Business Assistance Program EXHIBIT A ELIGIBILITY CRITERIA: Each qualified small business: 1. The primary location of the business must be within the City of Wylie city limits. 2. Must have been in continuous operation for a period of at least six months prior to the application date. 3. Must be in good standing with the City of Wylie with respect to taxes, fees, utility payments and other financial obligations to the City. 4. Must have a current or anticipated revenue decline beginning March 1, 2020 resulting from COVID-19 impacts. 5. Must be a local, independent business responsible for all revenues and expenses. 6. Must have sustained a financial loss as a result of the COVID-19 pandemic. EXCLUSIONS: 1. Non-profit organizations are specifically excluded from and ineligible to receive grants under the program. 2. A business is ineligible if it has received assistance from the Paycheck Protection Program or an Economic Injury Disaster Loan. 3. An eligible franchise must be responsible on a local level for all revenue and expenses of the business. 4. A business is ineligible if it has 51 or more employees. DESCRIPTION OF GRANT: Each qualified applicant is eligible for a grant of up to $1,500 for a sole proprietorship, up to $5,000 for businesses with 26-50 employees, and up to $5,000 for businesses with up to 25 employees. Applicants must show proof of a financial loss as a result of the COVID-19 pandemic. A business may only apply for one category. APPLICATION PROCESS: Applicants may apply online at www.wylietexas.gov. Applications will be reviewed and grant funding will be approved on a first -come, first -served basis. Grants will be awarded until approved funding is exhausted or the grant program is ended by the City Council, whichever occurs first. Applications will be accepted during a 14-day open period beginning on May 6, 2020. The Resolution No. 2020-25(R) — Small Business Assistance Program City Council reserves the right to modify, amend or terminate the program and/or the program requirements at any time. The City Manager is authorized to take any and all actions he deems necessary to al I nister the program consistent with the program requirements as approved by the City Council. Continued funding of this grant program is not guaranteed. QUI D DOCU NTATION: 1. Completed application form. The eligible business must be the applicant, but the application form must be signed by an authorized agent of the eligible business. 2. Documents sufficient to evidence a business loss, or other evidence of gross revenue decline begi g March 13, 2020. For ex ple, a profit and loss statement from the same period last year and a profit and loss statement for this year is acceptable. 3. IRS Form 941. 4. If federal aid has been received, documents sufficient to evidence receipt of federal aid related to the COVID-19 disaster. 5. Other information, documentation or cl 'fication as required by City staff administering the program. 6. An eligible business receiving a grant will be required to execute a Chapter 380 Economic Development Agreement with the City of Wylie. PUBLIC DISCLOSU OF APPLICATIONS D SUPPORTING DOCU NTS: By submitting an application under the program, the applicant consents to submitting all required or supporting documentation and information to the City of Wylie and to the public disclosure of such documentation and information by the City of Wylie in response to any request submitted pursuant to the Texas Public Information Act and/or other applicable law. Resolution No. 2020-25(R) — Small Business Assistance Program