HomeMy WebLinkAbout4.1 Award Small Business Assistance Emergency Program Grants
TO: Economic Development Authority
FROM: Christine Costello, Economic Development Director
DATE: May 27, 2020
RE: Award Small Business Emergency Assistance Grants
Introduction
On May 6th, the City Council held a workshop to discuss a proposed Small Business Emergency
Assistance Program. The City Council discussed that by providing financing to assist local
businesses that it may help the business sustain their operations, preserve employment, and
prevent business closures, all in effort to promote long term economic vitality in the community.
The City Council recommended moving forward with establishing a program. Then on May 7th
the Economic Development Authority (EDA) reviewed the proposed grant program and
recommended approval of the program as well with a vote of 7 to 0.
The grant program provides $300,0000 from the EDA Trust fund which is not City tax dollars to
provide grants of up to $10,000 per businesses that can provide evidence of a loss of income
during COVID-19 and proof of profitability before the pandemic. The grant is to ensure the
preservation of employment opportunities through the prevention of business closure to promote
long-term economic vitality in the community. While this effort focuses on business stability, it
also assists those workers employed by a small business and allows them to continue to make
rent and mortgage payments to stay in their home.
The program provides qualified locally owned and operated small businesses (those with 3 to 25
employees and under $1 million dollars in annual revenue) with a one-time emergency grant of
up to $10,000 to be used for working capital purposes defined as wages, employee health
benefits, leave payments, mortgage/rent payments, utilities and/or property taxes and other
critical business expenses that can’t be paid as a direct result of the current COVID-19 pandemic.
The applications were reviewed by Ehlers and Associates (Ehlers), as the third-party consultant
and to prevent bias in the review of the applications. Ehlers reviewed the applications to ensure
the applicants met the program guidelines and were in good standing before the pandemic.
After City Council and EDA approval of the program, Economic Development staff mailed 95
letters with program guidelines to businesses that were impacted by Executive Orders 20-04 and
20-08 the program guidelines and how to apply. The program was promoted on the City’s social
media platforms, City’s website, and emails were sent to the Cottage Grove Area Chamber of
Commerce and Open to Business, asking that they promote the program to their Cottage Grove
contacts and post to their social media accounts as well.
Economic Development Authority
Award Small Business Emergency Grants
May 27, 2020
Page 2 of 4
Discussion
As the application period ended on May 20th EDA staff learned that some of our community
partners were not able to advertise the program as robustly as hoped. As of May 20th, the EDA
had received ten (10) applications for the grant program. Due to the smaller application pool the
deadline was extended to provide a second round of the grant program. The EDA re-advertised
and sent another mailing to 95 businesses as well as advertising again on the City’s social media
platforms and working with our community partners to get the “word out” to businesses. The
second-round application period ends on May 29th and those applications will be brought before
the EDA at the June 9th meeting.
The grant program had six eligibility requirements and they included:
Eligible businesses per Executive Orders 20-04 and 20-08.
Located in Cottage Grove
3 to 25 full-time employees
Make $1 million or less in annual gross income
Two years in operation
Applied for State and Federal funds
The last eligibility requirement was strongly encouraged but not required in the grant program.
At the end of the first round there were ten (10) grant applications. The grant application for Rustic
Floral Boutique is considered incomplete because they did not provide the required
documentation for the grant application. They were given the opportunity to apply for the second
round of the grant and to be considered in that funding round if they submit the required
documentation needed for the grant application.
The remaining applications met all the initial eligibility requirements expect All About Nails which
has not been in operation for two years, they also did not apply for any Federal or State funding.
Per recommendations below to revise the eligibility guidelines All About Nails should also receive
a grant of $10,000. The following were the recommendations from Ehlers based on the program
eligibly guidelines they were given to review the applications.
The Small Business Emergency Assistance Grant Program and the COVID-19 pandemic has
impacted the business community greatly leaving many businesses future uncertain. In
developing the Cottage Grove Small Business Emergency Assistance Program other small
business programs for the impacts of COVID-19 pandemic were researched (Edina, St. Louis
Economic Development Authority
Award Small Business Emergency Grants
May 27, 2020
Page 3 of 4
Park, and Minnetonka). It was found that all the of the eligibility requirements were nearly the
same for all of the communities so developing the Cottage Grove program was based on what
other metro communities used as guidelines, these served as the basis for the Cottage Grove
program since the community has not had previous loan and/or grant programs in the past.
In addition to research of other community programs a list of businesses to market was used from
ReferenceUSA.; they pull data from all public sources as well as making calls to businesses
around the nation to collect data on businesses. ReferenceUSA is used as a main source for
communities to develop their business retention and expansion lists. Though no data source is
fail-safe, it served as a starting point in developing a list of businesses that qualified under the
program guidelines and Governor Walz’s Executive Orders 20-04 and 20-08. This was the list of
95 businesses that received letters about the grant program.
Through this process and in speaking with local businesses many could not apply based on the
current legibility guidelines. Specifically, for the years of operation, the number of full-time
employees, and the annual gross income. An example of this was the application we received
from Las Margaritas; they were over the full-time employee count and the annual gross income.
Since the EDA and City Council approved grant funding of $300,000 another round of funding
where some of the guidelines were adjusted such as the business must be in operation for one
year prior to COVID-19 rather than two years, and that the number of full-time employees be
increased to 70 and modifying the requirement of annual gross income to $3.5 million or less
instead of capping it at $1 million. These changes to the grant program would assist in
encompassing more local businesses who have been impacted by the COVID-19 pandemic.
With the consideration of revising the eligibility guidelines all eight of the applications (nine
applications, if Las Margaritas was included) could be considered for grants of $10,000 (totaling
$90,000) and there would be a remaining $210,000 (21 grants) for local businesses that would
meet the revised guidelines. A lottery system would be used if greater than 21 applications are
received.
Additionally, all the business are required to provide a brief report in approximately two months
(November 1, 2020 at the latest) to the EDA on how the grant funds were used for eligible
expenses such as for working capital purposes defined as wages, employee health benefits, leave
payments, mortgage/rent payments, utilities and/or property taxes and other critical business
expenses
Recommendation
Consideration of:
1. Approval of nine (9) Small Business Emergency Assistance Grants each for $10,000 to
All About Nails, Belissimo Salon and Spa, Mathnaisum of Cottage Grove, Dance by Kris,
Historic John P. Furber Farm, The Healing Place of Cottage Grove, New Century Salon,
Las Margaritas, and Turbo Nails.
2. Approval of revising three of the six eligibility guidelines to allow businesses to apply if
they have been in business for one year instead of two, have between 3 and 70 full-time
employees and make $3.5 million or less in annual gross revenue and provide a brief
report to the EDA no later than November 1, 2020 on how the grant was used for eligible
expenses.
Economic Development Authority
Award Small Business Emergency Grants
May 27, 2020
Page 4 of 4
Attachments
Program Guidelines
Grant Agreement
Ehlers Memo dated May 27, 2020
COTTAGEGROVESMALLBUSINESSEMERGENCYGRANT
PROGRAM
PURPOSE
TheCityofCottageGroveEconomicDevelopmentAuthority(EDA)hasestablishedafundto
provideforgivable,nointerestloansofupto$10,000toassisteligiblesmallbusinesses
impactedbyCOVID19pandemic.Thepurposeofthesefundsistoensurethepreservationof
employmentopportunitiesintheCityofCottageGrovethroughthepreventionofbusiness
closurestopromotelongtermeconomicvitalityinthecommunity.
Grantfundswillbeavailableonalotterysystemandtheapplicationperiodwillbeopenforone
week.TheprogramissubjecttofundingavailabilityfromtheEDA.TheEDAretainsthe
authorityanddiscretiontoapproveordenyanapplication,andreservestherightto
subsequentlyaddfurtherpriorities,changeeligibilitycriteria,ordiscontinuetheprogramin
responsetochangingcircumstances.
ELIGIBILITY
TobeeligibletoreceiveSmallBusinessEmergencyAssistancefunds,abusinessmust
beendirectlyandadverselyaffectedbytheCOVID19
demonstratethatitsoperationshave
HealthPandemicand/orthatitoperatesinacategorynamedinExecutiveOrders2004and20
08.Allapplicantsmustmeetthefollowingcriteria:
1. Eligiblebusinesstypesincludelocallyownedandoperatedbusinessesnotedin
and2008,suchasthoselistedbelow.
ExecutiveOrders2004
Restaurants,cafes,coffeehouses,andotherplacesofpublicaccommodation
offeringfoodorbeverageforonpremisesconsumption.
Taverns,brewpubs,microbreweries,distilleries,wineries,tastingrooms,and
otherplacesofpublicaccommodationofferingalcoholicbeveragesforon
premisesconsumption.
Gymnasiums,fitnesscenters,indoorsportsfacilities,indoorexercisefacilities,
exercisestudios,businessesofferingmassagetherapyorsimilarbodywork,spas,
salons,nailsalons,cosmetologysalons,andbarbershops.Thisincludes,butisnot
limitedto,allsalonsandshopslicensedbytheMinnesotaBoardofCosmetologist
ExaminersandtheMinnesotaBoardofBarberExaminers.
Artandmusicstudios.
Bowlingalleys,skatingrinks,andothersimilarrecreationalorentertainment
facilities
CottageGrove
SmallBusinessEmergencyGrantProgram
(DuringCOVID19)
OtherbusinessesdeemednonessentialunderExecutiveOrders.
OtherbusinessesasapprovedbytheEDA.
2. Thebusinessshallhaveaphysicaladdress(proofofaddressrequired)withinthecity
(andnotlocatedinaresidentialneighborhood)andhavebeenoperatingwithinthecity
longenoughtodemonstratefinancialviability.
3.Thebusinessshallemploybetween3and25FullTimeEquivalent(FTE)employeesprior
totheissuanceoftheStateofMinnesotaEmergencyExecutiveOrder2004(March16,
2020)andmake$1millionorlessinannualgrossrevenue.Businesseswithlessthan3
employeeswillbeconsideredonacasebycasebasis.
4.ThebusinessmusthavebeeninoperationforaleasttwoyearspriortoMarch1,2020.
5.Allbusinessesmustservethegeneralpublicandbeaconforminguseunderthecurrent
zoningregulationsofthecity,mustnotbeinviolationofthezoningcode,and
mustnothaveanydelinquenttaxes,bills,orchargesduetothecity;
6.Applicantsarestronglyencouragedtoclaimallapplicableprivateandpublicinsurance
andutilizeallothersourcesofapplicableassistanceavailablefromotherprivateand
publicsources,includingbutnotlimitedtorequestsforrent/mortgage,utilityand/or
loandeferrals/forgiveness.Applicantsmustsupplyevidencethattheyhaveappliedfor
FederalandStatedisasterfinancialassistancethroughtheSmallBusiness
Administration(SBA)andSmallBusinessEmergencyLoanthroughtheMinnesota
DepartmentofEmploymentandEconomicDevelopment(DEED)priortoapplyingfor
thisgrant.
7.Assistancecannotbeprovidedtobusinessesornonprofitsthat:
DonothaveaphysicaladdresswithintheCityofCottageGrove
AgriculturalRelated(croporlivestockproduction,etc.)
Purchaseofmachineryorvehicles.
Movingexpenses.
Landacquisitionforspeculation.
Nonprofitorganizations.
Selfemployed,independentcontractors,orbusinesseswithnoemployeesother
thananowner(s).
Corporatechains,multistatechains.
BusinessesindefaultconditionspriortoFebruary29,2020.
Deriveincomefrompassiveinvestmentswithoutoperationaltiestooperating
businessesorwhoseprimarysourceofrevenueisfrombusinesstobusiness
transactions;realestatetransactions;propertyrentalsorpropertymanagement;
billboards;orlobbying.
Primarilygenerateincomefromgamblingactivities.
Generateanypartofitsincomefromadultorientedortobacco/vapingrelated
activities.
Havenocurrentorhistoricalfinancialstatements.
Previouslyreceivedemergencyfundsfromthecity.
CottageGrove
SmallBusinessEmergencyGrantProgram
(DuringCOVID19)
PROGRAMGUIDELINES
1. Amount:Businessmayapplyforaonetimeemergencygrantawardnottoexceed
$10,000.Staffwillrevieweachrequestforloanfundstodeterminethelevel
ofassistancethatwillbeprovided.
2. Uses:Fundscanbeusedexclusivelyforworkingcapitalpurposesdefinedapayingfixed
debts,currentpayroll,accountspayable,taxesandpayingdirectbusinessrelatedbills
suchasrent,mortgage,orutilityfeesandothercriticalbusinessexpensesthatbe
paidasadirectresultofthecurrenthealthemergency.Awardedfundsmaynotbeused
forpersonalusesorexpenses.
3.Term:Allgrantfundsmustbeutilizedwithintwomonthsoftheloanagreementbeing
fullyexecuted.
4. ProofofNeed:Allapplicantsmustdemonstratefinancialneedforgrantfundspriorto
approval.Thisincludesbutisnotlimitedtothepreviousannualgrossrevenue,
averagemonthlygrossrevenuepriortoCOVID19,andprojectedmonthlygrossrevenue
forthenextthreemonths.Additionally,applicantsarerequiredtoprovideevidenceof
applicationsubmittal,acceptance,approvaland/ordenialofStateandFederal
emergencyfinancingprograms.Thiscouldsimplyincludeanemailresponsefromthese
agencies.
5. ProofofExpenses:Applicantshallprovideproofofeligibleexpenserequestedtobepaid
withgrantfunds.Thisincludes,butisnotlimitedtocurrentpayroll,unpaidinvoices,
mortgageprincipalandinterest,rent,utilitypayments,propertytaxesand/orother
unpaidbusinessrelatedexpenses.
6. DisbursementofFunds:Fundsshallbedistributedwithintwoweeksafteraloan
agreementhasbeenexecutedbyallrequiredparties.
7. Termination:TheEDAretainstherighttoterminateanyagreementunderthe
EmergencyAssistanceProgramifagrantrecipientisfoundtobeinviolationofany
conditionssetforthinthegrantguidelinesorgrantagreement.
8. RighttoDeny:TheEDAretainstherighttodenyanyapplicationforgrantfunding.
9. GrantAgreement:Uponanapplicantbeingawardedfunds,thegrantrecipientshall
enterintoagrantagreementwiththeCottageGroveEDA.Fundswillnotbedistributed
forayawarduntiltheapplicantprovidesproofofexpensesandagrantagreementwith
theCottageGroveEDAhasbeenexecutedbyallrequiredparties.
10. Reporting:Asaconditionforreceivinggrantfunding,allgrantrecipientsarerequiredto
submitabriefreporttotheEDAwithintwomonthsafterreceivinggrantfunds,
specifyinghowtheentiretyofthegrantfundswereutilizedandprovidingevidencein
theformofpaidinvoices,statements,orsimilardocumentation.
11. FundingAvailability:TheSmallBusinessEmergencyAssistanceprogramhaslimited
amountoffundsavailable.Fundsareawardedviaalotterysystemaftertheoneweek
CottageGrove
SmallBusinessEmergencyGrantProgram
(DuringCOVID19)
applicationperiodisclosedoruntiltheearlierofthedatethefundisexhausted,orthe
citydeclaredstateofemergencydeclarationislifted.
12.Indemnification:AllgrantrecipientsshallberequiredtoindemnifytheCityofCottage
Grove,theCottageGroveEDA,andanyofficersactingontheirbehalf.
APPLICATIONPROCESS
Priortoapplying,pleasereviewtheProgramGuidelinestodetermineifyourbusinessiseligible.
1. Applicationsareavailableonthewebsite:www.cottagegrovemn.gov
2. Applicationrequirementswillinclude:
Basicdetailsaboutthebusiness.
BasicEmploymentandannualgrossrevenueinformation.
Informationoncurrentoperationsincludingwhetherthebusinessiscurrently
closedorisprovidingreducedservices.
Narrativedescriptionsandestimatedcalculationsofthenegativeimpactsofthe
businessduetoCOVID19.
Anarrativedescriptionofthecurrentplansforresumingoperationsfollowing
theCOVID19crisis.
Evidenceofapplicationsubmittal,acceptance,approvaland/ordenialofState
andFederalemergencyfinancingprograms.Thiscouldsimplyincludeemail
responsefromtheseagencies.
Supportingdocumentationandapplicationattachments.
3. Fullycompletedandesignedapplicationsalongwithrequireddocumentsmaybe
submittedonlineto:(EmailAddress).Hardcopieswillnotbeaccepted.
4.Uponsubmissionofapplication,applicantswillreceiveamemailconfirmationreceiptof
application.
5. Theapplicationwillbereviewedforeligibilityuponreceipt.Ifadditionalinformationor
documentationisnecessaryEDAstaffwillcontacttheapplicant.Duetoanexpected
highvolumeofapplications,youmayconsideryourapplicationscompleteifstaffdoes
notrequestadditionalinformationwithin5businessdaysafterapplicationacceptance.
6. Fundswillbedistributedonalotterysystem.
Ifyouhaveanyquestionsorneedassistancecompletingthegrantapplication,pleasecontact:
ChristineCostello,EconomicDevelopmentDirector
CityofCottageGrove
Ph:6514582824
Email:ccostello@cottagegrovemn.gov
CottageGrove
SmallBusinessEmergencyGrantProgram
(DuringCOVID19)
FUNDINGPROCESS
Ifapplicationisapprovedandfundsareavailable,businesseswillbenotifiedwithin510
businessdaysandprovidedwithanelectronicgrantagreementforsignature.
Fundsshallbedistributedwithinonetotwoweeksafteragrantagreementhasbeenexecuted
byallrequiredpartiesdependingonhowgrantrecipientselecttoreceivefunds.
Smallbusinessesreceivingfundsmustcommittousingthefundsforeligibleprogramexpense
andmustagreetodocumentandreportspecificusesofthefunds.Accordingly,allgrant
recipientsarerequiredtosubmitabriefreporttotheCottageGroveEDAwithintwomonths
afterreceiptoffunds,specifyinghowtheentiretyofthefundswereutilizedandproviding
evidenceintheformofpaidinvoices,statements,orsimilardocumentation(seesamplereport
formattached).
FOLLOWUPANDADDITIONALRESOURCES
Forbusinessesneedingadditionalresourcessuchastechnicalassistance,largerworkingcapital
other,staffwillprovideongoingassistancetobusinessesofallsizesandtypes,
loans,or
workingwithpartnersandotherlevelsofgovernmenttoaccessresourcesavailable,suchas
SBAandStateofMinnesotaDEEDloans.
Staffwillconductcheckinwithgrantrecipientswithinoneyearofthedistributionoffundsto
learntheeffectofthegrantandbusinessoutcomessuchaseconomicimpactofthegrant
program,(including,butnotlimitedto,employeesretainedorrehired,andsales)andwhether
theymatchthedesiredoutcomesofbusinessand/orjobretention
CottageGrove
SmallBusinessEmergencyGrantProgram
(DuringCOVID19)
SAMPLE
CottageGroveEDASmallbusinessEmergencyAssistanceReportForm
Asaconditionforreceivinggrandfunding,arecipientsofCottageGroveSmallBusiness
AssistancearerequiredtosubmitabriefreporttotheCityofCottageGroveEconomic
DevelopmentAuthority(EDA)withintwomonthsafterreceivinggrantfunds,specifyinghow
theentiretyofthegrantfundswereutilizedandprovideevidenceintheformofpaidinvoices,
statements,bill,orsimilardocumentation.
BusinessName:______________________________________________________________
BusinessStreetAddress:_______________________________________________________
City:______________________State:____________________ZipCode:_______________
NameandTileofPersonCompletingForm:________________________________________
1.Whatwasthetotalamountofgrantyourbusinessreceived?$_____________________
2. Pleasespecifyhowgrantfundswereutilized.Includeexpensesandamountsuptototal
amountofgrant.Forexample:Payroll2employees,2weeks:$3,000,MayRent$2,000.
Pleaseattachorprovidecopyofstatement,invoice,bill,orsimilardocumentationpaidwith
assistancefunds.
3. Pleasedescribebenefitsreceivedfromtheawardedfunds.
4. BrieflyexplainanyongoingbusinessimpactsformtheCOVID19pandemic:
CottageGrove
SmallBusinessEmergencyGrantProgram
(DuringCOVID19)
ApplicationChecklist
Thefollowingdocumentsmustbeincludedinorderforanapplicationtobeconsidered
complete,otherwiseyourapplicationisconsideredincompleteandwillnotbeconsidered.
Completionofonlineapplication
ProofofAddress
ArticlesofIncorporation
EvidenceofrevenuelostrelatedtoCOVID19
Applicantshouldsubmitdocumentationthatbestdemonstratestheimpactandisdeemed
acceptablebyProgramAdministrator.Someexamplesofacceptabledocumentationinclude
rd
SalesTaxReporting,PeriodStatementsfrom3PartySalesPlatforms,MerchantService
Statements,andPointofSaleorRegisterreports.
Twomostrecentyearsoftaxreturnsandbalancesheets
2018and2019FederalBusinessReturnorappropriatebusinesstaxschedulebaseon
entitytype.Businessesthathavenotyetcompleteda2019FederalReturnareeligibleto
their2019
applyandsubstituteotherdocumentationofrevenueandwillneedtoprovide
Federalreturnwhencompletedtoqualifyforloanforgiveness.
,
EvidenceofEmploymentPriortoMarch1,2020.
Acceptabledocumentationmayincludeperiodreportingfroma3rdpartypayroll
processor,FederalFormQuarterlyFederalTaxReturn,orother
StateorFederalpayrollrelatedfiling.
CreditCheckCertificationFormBusinessOwner
st
PayrollReportfrom1Quarterof2020
Threemonthitemizedexpensereport(May,June,andJuly2020)
PersonalFinancialStatement(Optional)
SBAForm1368(Optional)
FORGIVABLE LOAN GRANT AGREEMENT
THIS AGREEMENT (“Agreement”) made this ____ day of _______________, 2020, by
and between the Cottage Grove Economic Development Authority, a Minnesota public body
corporate and politic, 12800 Ravine Parkway South, Cottage Grove, Minnesota 55016 (“EDA”)
and , a Minnesota (corporation,
limited liability company, sole proprietor), (address)
(“Grantee”).
RECITALS
WHEREAS, the City of Cottage Grove (“City”) has long desired to improve the function
and appearance of its community through economic development, and has invested substantial
resources toward that goal;and
WHEREAS, the Cottage Grove City Council established the EDA in order to advance
these objectives; and
WHEREAS, Grantee owns and operates a business located in Cottage Grove at
;and
WHEREAS, the EDA has established a fund to provide forgivable, no-interest loans
(“Grant” or “Grants”) of up to $10,000 to assist eligible small businesses impacted by COVID-19
pandemic (“Pandemic”); and
WHEREAS, Minn. Stat. §469.192 and Minn. Stat. §469.152 authorize the EDA to provide
loans for purposes of preventing the emergence of blighted and marginal lands and areas of chronic
unemployment; and
WHEREAS, the purpose of these Grants is to ensure the preservation of employment
opportunities in the City through the prevention of business closures to promote long-term
economic vitality in the community; and
WHEREAS, in order to be eligible for these Grants, Grantees must meet certain criteria
established by the EDA, including being a type of business specifically impacted by the Pandemic,
who were forced to be closed or significantly restrict or reduce operations by Executive Orders of
the Governor of the State of Minnesota; and
WHEREAS, Grantee submitted an application for a Grant in the amount of
dollars ($ ) and has been determined to be eligible for a Grant; and
WHEREAS, the Grantee’s application meets thecriteria for awarding a Grantestablished
by the EDA.
1
NOW THEREFORE, for good and valuable consideration, the receipt of which is
acknowledged, and in consideration of the covenants and agreements made herein, Granteeand
the EDA hereby agree as follows:
AGREEMENT
1. The Grantee is hereby awarded a Grant of in an amount of ($
).
2. The Grant shall be distributed by the EDA to the Grantee within two weeks after this
Agreement has been executed by both parties.
3. The Grant shall be used exclusively for eligible expenses, which includes the following:
paying fixed debts, current payroll, accounts payable, taxes and paying direct business-
related bills such as rent, mortgage, or utility fees and other critical business expenses.
Grants shall not be used for Grantee’s or any employee’s or any of Grantee’s family
member’s personal uses or expenses.
4. Grants must be used by August 31, 2020.
5. By November 1, 2020, Grantee shall provide the EDA with a brief report and
documentation of eligible expenses for which the Grant was used.
6. If Grantee complies with the terms and conditions of this Agreement, the Grantwill be
forgiven.
7. If Grantee does not use the Grant for eligible expenses, Grantee shall pay back the portion
of the Grant that was ineligible, with interest, which begins asof the date of the receipt of
the Grant, on a schedule to be determined by the EDA.
8. The parties agree that this Agreement shall be construed pursuant to Minnesota law and
any disputes shall be venued in Washington County, Minnesota.
9. Notices to the parties shall be sent as follows:
If to EDA: Cottage Grove EDA
Attn: Jennifer Levitt, Executive Director
12800 Ravine Parkway South
Cottage Grove, MN 55016
jlevitt@cottagegrovemn.gov
If to Grantee:
10. This Agreement shall not be assigned without the prior written consent of the other party.
2
11. This Agreement shall only be amended by written agreement approved by both parties.
IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed
by their authorized representatives as of the date first written above.
\[THE REMAINDER OF THIS PAGE INTENTIONALLY BLANK\]
3
COTTAGE GROVE ECONOMIC DEVELOPMENT AUTHORITY
Myron Bailey
Its: President
Jennifer Levitt
Its: Executive Director
STATE OF MINNESOTA )
)ss
COUNTY OF WASHINGTON )
The foregoing instrument was acknowledged before me this ________ day of
_______________________, 2020, by Myron Bailey and Jennifer Levitt, the President and
Executive Director, respectively, of the City of Cottage Grove Economic Development Authority,
a Minnesota public body corporate and politic existing under the Constitution and laws of
Minnesota, on behalf of the EDA.
Notary Public
4
NAME OF GRANTEE
Name:
Printed Name:
Its:
STATE OF )
)ss
COUNTY OF )
The foregoing instrument was acknowledged before me this ___ day of
______________________, 2020, by , the
of on behalf of the .
Notary Public
5
Memo
To: Christine Costello, Economic Development Director
From: Keith Dahl and Stacie Kvilvang, Ehlers
Date: May 27, 2020
Subject: Cottage Grove Small Business Emergency Grant Program Analysis
Per your request, Ehlers conducted a review of nine (9) grant applications received in response
to the COVID-19 health pandemic. We reviewed eligibility, demonstration of
economic impact, and verification of the following:
The applicant is in good standing with the Secretary of State
The property is current on its property taxes and/or rent prior to March 16, 2020
The business is a conforming use under current zoning code with no violations
No searches returned anything concerning related to the applicant
Please find a summary attached for further elaboration of our review. We have redacted the
financial information from the summary to protect sensitive data submitted by each applicant.
Recommendation:
Since the grant program was not oversubscribed in the first-round, a lottery system was not used
to determine grantees. Rather, applicants were selected based on meeting the review criteria
listed above and detailed in the grant program. Based on our review and verification of the nine
(9) applications submitted, we recommend awarding one-time emergency grants to the following
eight (8) applicants.
Business Name Grant Amount
1 All About Nails $ 6,000
2 Belissimo Salon & Day Spa $ 10,000
3 Mathnasium of Cottage Grove $ 10,000
4 Dance By Kris $ 10,000
5 Historic John P. Furber Farm $ 10,000
6 The Healing Place of Cottage Grove $ 10,000
7 New Century Salon $ 10,000
8 Turbo Nails $ 10,000
Note: We reduced the recommended grant amount accordingly for All About Nails since they
through the State or Federal Government. he one applicant, Las
Margaritas, who was not recommended for an award exceeded $1 million of annual gross income
and employed more than 25 full-time equivalent positions, thus making them ineligible for a grant.
Should you have any questions, please contact Keith Dahl at 651-694-8595.
Grant Request
Operating Status
Credit Check
Eligibility