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HomeMy WebLinkAboutI-10 Small Business Assistance Program* DO YOU WANT TO START A SMALL BUSINESS? * DOYOUNEED TO EXPAND YOUR SMALL BUSINESS? Cortland County will be applying for a NY State Grant for a microenterprise program that may assist small businesses with five or fewer individuals, including the owner(s), with grants up to $35,000. For guidelines/pre-application or questions contact Thoma Development Consultants: 607-753-1433 or linda@thomadevelopment.com 9 -PRE -APPLICATIONS DUE: APRIL 1, 2021 CORTLAND COUNTY PRELIMINARY MICROENTERPRISE PROGRAM GUIDELINES MICROENTERPRISE DEFINITION: A microenterprise is a business that includes five or fewer persons, including the business owner(s). The total number of individuals includes full and part-time employees without regard to the number of hours each employee works. PROGRAM PURPOSE: The Microenterprise Program (the "Program") will provide financial assistance to new or expanding small businesses that will increase economic opportunity for low -to -moderate income owners (LMI) and/or create jobs for low -to -moderate income persons. LOCATION OF PROGRAM: The business must be located in Cortland County, and the location must be zoned appropriately for the proposed business use. ELIGIBILITY AND GENERAL INFORMATION: 1. At the time of application an existing business must have no more than five (5) individuals, including the owner(s.) This includes both part-time and full-time employees without regard to the total number of hours worked by any employee, i.e. total head count; 2. Either the owner(s) must be low -to -moderate in income based on family size and gross annual income; or the project must result in the creation of jobs, the majority of which are available to low -to -moderate income persons. Low -to -moderate income limits are provided in the chart below; 3. The business owner(s)' and the business's County payments including, but not limited to taxes, water and sewer, must be current; 4. If funds are awarded to the County, applicants will need a business plan. Assistance in creating a business plan can be provided; 5. If grant funds are awarded to you, you will be required to attend classroom training approved by the State funding source. The training is generally a three -day -obligation; .. 6. Business owners awarded funds are required to provide a minimum of 10% cash equity of the total project cost. The equity must be in owner's cash and cannot result in the incurrence of debt (i.e. a loan); and 7. Other requirements will be provided in Program Guidelines to be provided to all applicants, if the funding is awarded to the County. ELIGIBLE USES OF FUNDS: Microenterprise funds can be used 1. to purchase capital equipment and fixtures including, but not limited to, manufacturing, processing, or display equipment; computer hardware; office furniture, display fixtures, or other equipment/fixtures that support the business activities of the applicant; 2. for working capital; 3. to purchase inventorv; 4. to purchase software that is specifically related to the business activity of the applicant; 5. for other uses, not specifically noted, but deemed appropriate by the County and approved by the State. INELIGIBLE USES OF FUNDS: Microenterprise funds cannot be used 1. to refinance existing debt or to pay interest as a result of interim financing; 2. for activity(ies) that will result in the loss of a job or jobs or the reduction of hours for any existing employee; 3. for the purchase or leasing of motor vehicles; 4. for construction, renovations and building repairs or to purchase equipment and supplies the require a certain level of labor to install; 5. for illegal activities or activities that are inconsistent with or will detract from the County's character," that are reasonably objectionable to the County; or do not comply with local zoning regulations or other municipal plans; 6. for religious, political, lobbying and/or governmental activities; 7. to fund not-for-profit applicants; and 8. for costs incurred prior to approval of grant award by the County to the recipient. MICROENTERPRISE PROGRAM GUIDELINES FINANCIAL ASSISTANCE: 1. The proposed assistance per project is $5,000 to $35,000. The award will be determined by the County's Review Committee based on a review of the application and supporting documentation; 2. Assistance is in the form of a "deferred loan" that does not require repayment but is subject to recapture if the business closes or relocates outside the County within five (5) years of the date of project completion. The amount of funds recaptured is reduced over time, and is determined based on the amount of time the business operated in the County; 3. A minimum of 10% of the total project cost must be provided as owner's equity. Equity must be in the form of cash, not loan funds; 4. If the project cost exceeds the maximum amount of assistance provided by the County, the owner is responsible for providing the balance. The balance of the project cost must be documented prior to approval. TRAINING: The State funding source, the New York State Office of Community Renewal (OCR), requires all participating business owners to complete a training course approved by the OCR. The training can be completed after award of funds. Cost is paid for by the recipient. DISBURSEMENT OF FUNDS (Reimbursement process): This is a reimbursement program. Documentation of purchases made and paid for must be provided before the request for the reimbursement funds is submitted to NYS OCR. Each business is allowed a maximum of two reimbursement requests to the State. In no case will assistance be paid in advance of purchases. OTHER TERMS AND CONDITIONS: 1. The microenterprise owner agrees to repay any grant funds in full or in part if the business ceases operation or moves outside the County prior to the end of the five-year regulatory period; 2 A Grant Agreement between the County and the microenterprise owner(s) will be executed prior to the disbursement of any funds. This Agreement will detail the terms and conditions of the funding; 3.. Job creation will be verified and monitored pursuant to a process established by the NYS OCR; 4. The microenterprise is required to comply with all .local, State, and national laws, regulations, or requirements that would normally_ and routinely apply to such businesses, and as may be required of recipients of State and/or federal funding; 5. Any of the above may be subject to change if the grant is awarded to the County. LOW -TO -MODERATE INCOME LIMITS FOR CORTLAND COUNTY (LMI) -APRIL 2020 FAMILY SIZE GROSS ANNUAL INCOME 2 3 4 5 6 7 8 $40,500 $46,300 $52,100 $57,850 $62,500 $67,150 $71,750 $76,400 *The Applicant/Business Owner or employees will be considered LMI if the family's gross annual income does not exceed the maximum income for the family size noted above. For example, a family of two adults and three children is a five - person family. The income below the number "5", $62,500 is the maximum income that family can earn on an annual basis and be eligible. If the family's gross annual income is less than $62,500 they are considered an LMI family. If the family's gross annual income is greater than $62,500, they are not LMI but can participate by creating an LMI job. Family is defined as those persons in a household that are related by marriage, birth or adoption. Family and household are not the same thing. Please ask if you have questions. We can help you determine if you are LMI. Gross income is from all sources for any employed persons in the family over the age of 18. MICROENTERPRISE PROGRAM GUIDELINES CORTLAND COUNTY MICROENTERPRISE ASSISTANCE PROGRAM - 2020 PROGRAM PRE -APPLICATION PACKAGE Cortland County will be submitting a Community Development Block Grant (CDBG) application to the New York State Office of Community Renewal (OCR) for microenterprise funds to establish a Microenterprise Assistance Program (MAP). As part of the application process, the County must document to OCR that there is adequate interest and need to warrant the award of these funds. Submission of pre -applications from individuals or businesses, new or existing, is key to the County's ability to secure the funds. We hope you will complete and submit this package to help ensure funding to the County. Pre -applications should be submitted ASAP. The following documents make up the pre -application and are attached for your review and completion: • General Information Form — Complete and return •_ Narrative, Budget, and Need Form — Complete and return • Family Income Form - Complete and return • Letter of Interest --Sign, date, and return Questions can be directed to Linda Armstrong of Thoma Development at 607-753-1433, or by email at linda@thomadevelopment.com Return all completed forms to Linda Armstronq. Email to linda thomadevelopment.com or mail Attention: Linda Armstrong-- Thoma rmstrong°Thoma Development 34 Tompkins,Streer Cortland, NY 13045 . - GENERAL INFORMATION FORM This information is for pre -application purposes only. Pre -applications will be used to determine the level of interest in the proposed program. Additional information may be requested. Applicants will be required to complete a full application at a later date if microenterprise funds are awarded for the proposed Program. GENERAL INFORMATION Name(s): Address: Email: Business Name: Address: Daytime Phone Number: Cell Phone: Number of people in your family: BUSINESS/JOBS INFORMATION ❑ Existing Business (Date business started ) ❑ New Business Please summarize what employees you currently have and how many you will hire if awarded funds: How many full-time employees do you currently have, including yourself and other owners? How many part-time employees do you currently have? How many full-time employees do you plan to hire if funds are awarded? How many part-time employees do you plan to hire if funds are awarded? What is the total number of hours all part-time employees to be hired will work in a week? Please list the types of jobs to be created: 1) 2) 3) Do you have a current Business Plan? ❑ YES ❑ NO Are you in the process of preparing a Business Plan? ❑ YES ❑ NO 2 PROPOSED. PROJECT NARRATIVE On a separate sheet, please type or print a description of your project in a paragraph or two. Attach the sheet and return it with your pre -application. Please -address the following issues (In any order that is appropriate for the details of your Project): • Is the business new or existing; if existing provide brief history • Type of business • What new product or service will be provided, if grant funds are awarded • Does the product or service fill a void in the community; explain • What will grant funds be used for • Specify type of job(s) to be created • How does the project facilitate job creation, if appropriate • Location of business • Will you have an on-line presence, storefront or both '. PROPOSED BUDGET Please complete the chart below. Provide the item(s) to be purchased in the appropriate category, the estimated costs and the source of the estimates, such as actual quotes or online retailers such as Amazon, etc: Complete for only those Items that are pertinent to your Project. Each applicant will have to provide 10% of the total project cost as equity (which cannot be in the form of debt); in addition to the cost in excess of the maximum award of $35,000. Not all applicants will receive the maximum.. Applicants should request only what is needed to complete the project and should have sufficient equity to contribute to the project if and when an award is made. Building supplies, construction costs, and vehicles are not eligible for funding: (Attach additional sheet -and detail if desired or helpful) Item-- Equipment tem-Equipment Furniture and Fixtures Electronics/Computers/Software Inventory -Working Capital .TOTAL: Estimated Cost Source of Estimated Costs - I 1 1 1 I currently have or will have the required 10% equity for the above project. The equity will be from (Please specify source): STATEMENYOF NEED Microenterprise funds are intended to assist small businesses that do not have access to traditional bank financing. When you apply, you will have to document your need. Please provide below a statement of why this project can't be financed with traditional bank financing and a micro grant is necessary. 3 FAMILY INCOME FORM - CORTLAND COUNTY Name: Address: Number of people in my -family: INSTRUCTIONS Determine your family size by counting yourself and each family member who currently resides with you within the same housing unit. Afamily member is a person who is related to you by birth, marriage, or adoption. Circle the appropriate family size below. Next, total the income from all sources received during the last calendar year (January - December) by yourself and each member of your family who currently resides with you. Income includes wages, salaries, tips, business income, interest, dividends, the taxable portion of pensions and annuities, IRA distributions, rents, royalties, partnerships, unemployment compensation, and social security; less alimony paid, and unreimbursed employee business expenses calculated consistent with IRS Form 2106. Compare this total to the figure listed for the circled family size and indicate which range your family income falls within by checking the appropriate box. My Family Income is (check one) Family Size <30% Median 30-50% Median 50-80% Median >80% Median (Circle) 1 ❑ <.$15,200 ❑ $15,201-$25,350 ❑ $25,351-$40,500 ❑ >$40,500 2 ❑ < $17,400 1:1 $17,401-$28,950 ❑ $28,951-$46,300 ❑ >$46,300 3 1-1 < $21,720 ❑ $21,721-$32,550 ❑ $32,551-$52,100 1:1 >$52,100 4 ❑ < $26,200 ❑ $26,201-$36,150 ❑ $36,151-$57,850 ❑ >$57,850 5 1-1 < $30,680 ❑ $30,681-$39,050 ❑ $39,051-$62,500 ❑ >$62,500 6 1-1 < $35,160 1:1 $35,161-$41,950 1:1 $41,951-$67,150 ❑ >$67,150 7 1:1 < $39,640 ❑ $39,641-$44,850 ❑ $44,851-$71,750 ❑ >$71;750 8 ❑ < $44,120 ❑ $44,121-$47,750 ❑ $47,751-$76,400 1:1 >$76,400 9 or more Actual Income $ Currently Employed? (circle appropriate answer) ❑ Yes or ❑ No The information provided herein will be confidential and will only be used to provide statistical data required under the Community Development Block Grant program. If appropriate, it may be subject to verification pursuant to the rules and regulations of the Office of Community Renewal and the U.S. Department of Housing and Urban Development. I certify that the information provided herein is true to the best of my knowledge. Signature 4 Date I LETTER OF INTEREST Cortland County Microenterprise Program - 2020 Program My signature below indicates my interest and desire to apply for Microenterprise funds and undertake the project as described in my pre -application should these funds be awarded to Cortland County. I am familiar with the guidelines and requirements of the proposed program, including the requirement to provide a minimum 10% equity match. I verify that I have the necessary funding to provide this match and commit it to the project. I understand that if the budget for my project exceeds the maximum amount of assistance available through Cortland County, that I will be responsible for providing such additional funds as needed. I also understand that the 10% equity contribution cannot be in the form of debt or a loan. I further understand that the provision_of funding is a competitive process and,that a formal application with additional documentation will need to be submitted if I choose to participate in the Program, and that submission of a pre' -application or -complete final application does not ensure funding.- I understand that all final applications will be reviewed by a Committee and approval of applications for funding will be made by the County's Council. I fully support the efforts of Cortland County to secure such funds for a Microenterprise Assistance- Program ssistanceProgram and look forward to working with the County to undertake this project. Sincerely, Signature Date Please make sure all forms are completed and the letter ofinterest is signed before returning. Thankyou! 5