City of Danville

Danville Community Development Block Grant (CDBG)

COVID-19 City of Danville – Small Business Assistance Grant

PURPOSE
The City of Danville will invest up to $373,099 through its Community Development Block Grant (CDBG) program funded by the US Department of Housing and Urban Development (HUD) to support qualifying local businesses in the Danville community that have been impacted by the COVID-19 pandemic. 

The following requirements, selection criteria and procedures will be adhered to during the grant selection and disbursement
process.

 

FUNDING REGULATIONS
The use of CDBG grant funding is governed by federal regulations, which state that funds must primarily benefit individuals with low and moderate income (LMI). This requirement is met through one of three ways:

 

  1.  The business owner receiving the CDBG grant funding qualifies as an LMI person and has no more than four (4) other                 employees.  LMI qualifications are based on family size and income and can be determined in the application process.

 

     2.  If the business retains current employees, the business must certify that the jobs being retained with CDBG grant funding would be lost without assistance from the grant programs and that 51% or more of the employees being retained qualify as an LMI person.

 

     3. If the business creates new jobs, the business must hire or make at least 51% of its new jobs “available to” LMI individuals. “Available to” means: (1) the job does not require special skills or a particular level of education, and (2) the business has agreed to hire LMI persons and train them for the jobs. Business owners will be asked to certify LMI qualifications of employees or job availability in the application process.

ELIGIBILITY REQUIREMENTS
In addition to the above CDBG regulation requirements, businesses meeting ALL of the following criteria shall qualify for grant award consideration:

·         If a business has received any other federal or state assistance they cannot request funding for similar assistance, but is still eligible for this grant. For example, if the business received funding through the Paycheck Protection Program, the business can only apply for operating expenses. This will limit the duplication of funding.

·         Must have a business location in Danville city limits.

·         Must have $1 million or less in annual gross revenue.

·         Must have 50 or fewer W-2 employees.

·         Must be a for-profit business.  The following business types are specifically ineligible for assistance:

          –Nonprofit organizations/businesses;

          –Businesses that involve the sale of medical or recreational cannabis;

          –Private club or business that limits membership for reasons other than capacity;


          –Businesses engaged in production or wholesale/retail selling of firearms;

          –Pawnshop, liquor store, adult bookstore, non-therapeutic massage parlor, strip club or nightclub;

          –Storage facility, trailer-storage yard or junkyard;

          –An establishment similar to any enumerated above; or

          –Businesses deemed ineligible by the US Department of Housing and Urban Development (HUD) or the City of Danville.

·         Must be structured as a sole proprietorship, partnership, corporation, or limited liability company (LLC).  Individuals who are self-employed are also eligible to apply.

·         Individuals whose self-employment income is substantially reported (51% or more) through IRS Form 1099-MISC are not eligible due to an inability to qualify under CDBG regulations.

·         Must have been in operation on or before July 1, 2019, and must be currently in compliance with any state or local regulations or requirements.

·         Eligible businesses can include essential and non-essential businesses so long as the business is continuing to pay employees, provide health insurance, or is willing to certify that previously furloughed/terminated employees will be rehired with the proceeds of this grant or other supplemental federally-funded grant or loan programs.  More information regarding essential and non-essential business classifications can be found at: https://www2.illinois.gov/dceo/Documents/Essential%20Business%20FAQ-Flowchart.pdf

Multiple applications/applicants cannot simultaneously compete for funding for the same property parcel or address.

GRANTMAKING
Businesses meeting the requirements above shall be first considered eligible for a:

·         $10,000 maximum grant award for businesses with W-2 employees; or

·         $2,000 maximum grant award for self-employed individuals and businesses that do not have W-2 employees.

Grant funds may only be used by awardees for working capital expenses that include (but not necessarily limited to): employee salaries, general operating expenses (rent or utilities), and inventory.  

 The City will try to fund as many qualified applicants as possible.  Should funding become limited, the following criteria will be utilized to prioritize applications:

·         The number of jobs retained as of the date of the application, as well as, the number of jobs that are planned to be rehired due to the assistance from the City and other federally-funded programs.

·         The degree to which the business has been directly impacted by new public health requirements (social distancing) related to the COVID-19 pandemic.  Applicants should provide a description of how their business has been impacted within their application and have additional documentation available upon request such as profit/loss statements to support such claims.

·         The degree to which businesses have been impacted due to being considered “non-essential” and have lost their sources of revenue.  Applicants should provide a description of how their business has been impacted within their application and have additional documentation available upon request.

The degree to which businesses primarily provide public-facing retail or public-facing services and have lost their sources of revenue.  Applicants should provide a description of how their business has been impacted within their application and have additional documentation available upon request.

HOW TO APPLY

1.   Business owners may create an account and apply for Danville’s Small Business Assistance Grant at the following web address (Please Copy and Paste Link):

 https://portal.neighborlysoftware.com/danvilleIL/Participant

2.   Upon visiting the page, please click “Register” to create an account.  Please make sure you use a password that you can remember as this login will be used to apply for current and future funding opportunities provided by the City of Danville.

3.   After creating your account, please sign-in using the e-mail address and password you provided.

4.   You will then be brought to your account dashboard which you will use to start your application.

5.   Complete the application and upload any needed documentation.  Please note, you can start, stop and continue the application at any time before the grant deadline.

If awarded funding, you will also visit this page to provide reports and upload documents as necessary.  We encourage you to bookmark/favorite this page for convenient access in the future.

SELECTION and DISBURSEMENT PROCESS

·         Funds will not be dispersed until a CAGE code is obtained and documentation is provided to the Grants Management Division. Registration can be completed by following this link – https://sam.gov/SAM/

·         Businesses can apply via the online application portal link above.  Applicants will be required to submit evidence, testimony or documentation supporting their case regarding the impact of COVID-19 on their business.

·         During the application process, businesses will be asked to provide personal information including name, address, phone number, family size, household income, gender, race, and ethnicity of owners and employees to satisfy federal CDBG reporting requirements.

·         The City will fund as many qualified applicants as possible, as funding allows.

·         Recommended grantees will be required to enter into a grant agreement with the City.

·         Once a grant agreement is approved, 100% of funds will be disbursed to recipients.

·         Grant recipient will be required to submit documentation regarding its use of funds to the City.

·         This grant is not intended for retroactive reimbursement.  Costs incurred before the date of the grant award are not reimbursable under this grant program.

The City reserves the right to reject any or all applications received and/or negotiate or cancel in part or in entirety grants resulting from application awards if it is in the City’s best interest to do so.  The City further reserves the right to establish the amount of grant funds awarded; raise the individual grant ceilings; and to award funds to other applicant(s) should funds become available due to de-obligation, etc.

Reporting

Grant Recipients will be required to submit documentation for proof of expenditures. Please save all documentation necessary to show how the funds were adequately expended.