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HomeMy WebLinkAbout21- Amendment 1 - Corona Small Business Local Relief Fund w ProsperaFirst Amendment to Sub-Recipient Agreement with Prospera Business Network Page 1 of 2 FIRST AMENDMENT TO SUB-RECIPIENT AGREEMENT FOR CORONAVIRUS SMALL BUSINESS LOCAL RELIEF FUND THIS FIRST AMENDMENT TO THE SUB-RECIPIENT AGREEMENT FOR Community Development Block Grant Revolving Loan Fund and Coronavirus Small Business Local Relief Fund approved on July 27, 2020 (the “Agreement”) is made and entered into this 5th day of _January__, 202_1_, by and between the CITY OF BOZEMAN, MONTANA, a self governing municipal corporation organized and existing under its Charter and the laws of the State of Montana, 121 North Rouse Street, Bozeman, Montana, with a mailing address of PO Box 1230, Bozeman, MT 59771, hereinafter referred to as “City,” and GALLATIN DEVELOPMENT CORPORATION, doing business as PROSPERA BUSINESS NETWORK, hereinafter referred to as “Sub-Recipient.” In consideration of the mutual covenants and agreements herein contained, the receipt and sufficiency whereof being hereby acknowledged, the parties hereto agree to amend the Agreement as follows: 1.Scope of Services. Section C of the Agreement is amended to add the services described in the Proposal attached hereto as Exhibit A and by this reference made a part of the Agreement. 2.Agreement still valid. All remaining terms and provisions of the Agreement remain valid. **** END OF AGREEMENT EXCEPT FOR SIGNATURES **** DocuSign Envelope ID: 325054A3-57FD-462D-B204-1D09AF24FDE9 First Amendment to Sub-Recipient Agreement with Prospera Business Network Page 2 of 2 IN WITNESS WHEREOF,the parties hereto have executed this instrument the day and year first above written. CITY OF BOZEMAN, MONTANA By________________________________ Jeff Mihelich, City Manager GALLATIN DEVELOPMENT CORPORATION, DBA PROSPERA BUSINESS NETWORK By_____________________________ Print Name: Paul Reichert Title: APPROVED AS TO FORM By_______________________________ Greg Sullivan, Bozeman City Attorney DocuSign Envelope ID: 325054A3-57FD-462D-B204-1D09AF24FDE9 Executive Director Coronavirus Small Business Local Relief Fund Program Description The Coronavirus Small Business Local Relief Fund is aimed at helping small businesses in Bozeman stabilize and recover operations. The fund is especially interested in helping those businesses who meet the eligibility criteria of single owner businesses with no employees and small businesses with up to 20 employees AND whose businesses are:  Impacted by COVID-19 health restrictions, reduced hours, reduced occupancy, or otherwise can demonstrate negative impacts due to health restrictions.  Dependent on in-person customers and have seen revenue decline due to COVID -19.  In need of the stabilization of operations, improvement of business efficiency, and/or assistance with business recovery. Pathways for Business Support: Grants and Micro-loans 1. Business Grants for Single Owner-No Employees: up to $5,000 Goal: Business Stabilization Use of Funds  Business lease and utility payments. Eligible Entities Applicants must meet all of the following eligibility criteria:  Single business owners physically located within the Bozeman city limits  Established before July 1, 2019  Not in bankruptcy  Good standing with City. “Good standing” with City means: o not delinquent in payment of City assessments or other City-imposed fees; and o has a current business license, if required; and o In compliance with City zoning and building codes  In compliance with all applicable federal, state, or local health department COVID-19 directive, rule, or order  Qualified to do business in Montana  Only one business is eligible per owner. Grants to holding companies held by the business owner are not eligible. Funding Program Grants: Eligible businesses apply to have up to 2 months of lease and utility payments supported. Grant award based on documented costs, up to $5,000. Target audience: Single Owner-No Employee businesses who can demonstrate impacts because of COVID health restrictions, and/or are dependent on in -person clients and can demonstrate loss of business activity. 2. Business Grants for Small Businesses: up to $10,000 Goal: Business Stabilization Use of Funds  Business lease and utility payments. Eligible Entities Applicants must meet all of the following eligibility criteria:  A business with 20 or fewer employees in Montana based on FTE count  A business physically located within the Bozeman city limits  Established before July 1, 2019  Not in bankruptcy  Good standing with City. “Good Standing” with City means: o not delinquent in payment of City assessments or other City-imposed fees; and o has a current business license, if required; and o In compliance with City zoning and building codes  In compliance with all applicable federal, state, or local health department COVID-19 directive, rule, or order  Qualified to do business in Montana  Only one business is eligible per owner. Grants to holding companies held by the business owner are not eligible. Funding Program Grants: Eligible businesses apply to have up to 2 months of lease and utility payments supported. Grant award based on documented costs, up to $10,000. Target audience: small businesses with employees who can demonstrate impacts because of COVID health restrictions, and/or are dependent on in -person clients and can demonstrate loss of business activity. 3. Micro-loans for Small Businesses: up to $30,000 Goals of the Program  Business Retention and Jobs  Business Recovery and Stabilization Use of Funds  Working capital and wages  Equipment and inventory  Lease and utility payments. Eligible Entities  A business with 20 or fewer employees in Montana based on FTE count  A business physically located within the Bozeman city limits  Established before July 1, 2019  Not in bankruptcy  Good standing with City. “Good standing” means: o not delinquent in payment of City assessments or other City-imposed fees; and o has a current business license, if required; and o In compliance with City zoning and building codes  In compliance with all applicable federal, state, or local health department COVID-19 directive, rule, or order  Qualified to do business in Montana  Only one business is eligible per owner.  Grants to holding companies held by the business owner are not eligible. Funding Program Business Loans. Eligible businesses apply for a loan up to $30,000 at 3% for 5 years. No fees or closing cost. NO prepayment penalty. No payments for 1 month (deferred) Business must provide a planned use of funds and demonstrate an ability to repay the loan. Application Process I. Grants: Recommend funding “rounds” so that the grant applications are done in several open cycles. This is a fair process that allows a variety of businesses to learn about and prepare to apply. And if they miss one round, they can get ready to apply for the next round. 1. Online web-form with questionnaire: Choose the grant track that applies -Download checklist of items needed 2. Assigned a business counselor and email exchanges to get copies of lease payments and eligibility documents for final grant application. Completed applicants go to committee for decision. 3. Committee approved grants, meeting all program criteria, will sign a grant agreement with Prospera. II. Loans: 1. A business eligibility online web-form will allow for the analysis of basic eligibility criteria information and provide a documents checklist. 2. A secure link to “share file” to upload documents will be provided 3. A business interview is conducted to determine both business eligibility and to discuss intended use of funds. Business signs loan application documents and Prospera pulls credit report. 4. Completed loan applications are reviewed by a committee established by Prospera and will include a City representative a. The committee will evaluate applications based on the business eligibility and requirements of the program and merits of the application. 5. Approved loans go to closing (loan agreement and promissory note) a. The loan agreement and promissory note used for micro-lending, will be reviewed and approved by the City in advance. Agreements will include, but are not limited to, the following required terms: i. Representation and warranty of compliance at the time of execution and continued compliance during the term of the loan agreement with COVID-19 rules. ii. Accelerated repayment if business is in breach of the above representation and warranty. iii. Nondiscrimination and Equal Pay provision Prospera Administration Prospera will charge the Coronavirus Small Business Local Relief Fund $2,750/mo. for two years to launch and manage the grant and loan program for business clients. Costs may include, but are not limited, to staffing, accounting, secure file system sharing, website forms, credit reports, lien filing, client services, software systems updates, audit, tax filing, banking, loan invoicing, servicing and record keeping.