HomeMy Public PortalAbout2020_08_11_R087 CARES Act of 2020 - Spending Plan Update and Second Round Funding The Town of
Leesburg,
Virginia
PRESENTED: August 11, 2020
RESOLUTION NO. 2020-087 ADOPTED: August 11, 2020
A RESOLUTION: CARES ACT OF 2020 MODIFICATION TO FIRST ROUND
SPENDING PLAN
WHEREAS, on May 12, 2020, the State Secretary of Finance announced allocations of
the $1.3 billion received by the Commonwealth of Virginia from the Federal Government's
Coronavirus, Aid, Relief, and Economic Security(CARES)Act of 2020 funding; and
WHEREAS, The Leesburg Town Council passed Resolution 2020-071 on June 9, 2020
that accepted $4,797,036 in CARES Act funding and adopted a spending plan for those funds
that included allocations for a small business grant program, a non-profit grant program; and
funds for Town government response to the COVID-19 pandemic (the "Pandemic"); and
WHEREAS, the Town has diligently pursued the distribution of these funds through a
small business grant program, a non-profit grant program, and internal purchases, facility
upgrades, and operational costs incurred as a result of COVID-19; and
WHEREAS,following initial awards under the"Business Infusion" small business grant
program, approximately $2,360,000 in funds allocated to small business relief remain un-
awarded; and
WHEREAS, following initial awards under the non-profit grant program, $197,439 in
funds allocated to the non-profit grant program remain un-awarded; and
WHEREAS, the Town Government must also adapt to the evolving conditions of the
Pandemic to ensure a healthy,reliable, and focused workforce to efficiently run Town operations;
and
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A RESOLUTION: CARES ACT OF 2020 MODIFICATION TO FIRST ROUND
SPENDING PLAN
WHEREAS, it is the intent of the Town Council to modify the spending plan for funds
allocated to the business grant, non-profit grant, and Town government response categories to
maximize use of the CARES Act funding for the benefit of the community; and
WHEREAS, the modified spending plan need not be pre-approved by Loudoun County
because all funding category allocations will remain as previously approved, and all
modifications are consistent with CARES Act spending requirements; the Town will continue to
meet the County grant certification and reporting requirements as set forth in Resolution 2020-
071.
THEREFORE, RESOLVED, by the Council of the Town of Leesburg in Virginia as
follows:
The CARES ACT Recommended Spending Plan adopted in Resolution 2020-071 on June 9,
2020 is modified as follows:
1. The remaining $2,360,000 in undesignated funds allocated for the Small Business
Grant shall be used for a second phase of the First Round small business grant
application process; the second phase shall have revised criteria to increase the number
of eligible businesses, and other revisions, including:
• Adding additional grant tiers for businesses and increasing the grant award
amounts as follows:
• Tier 1: $2,500-$9,999 ($1,000 award)
• Tier 2: $10,000-$24,999 ($2,000 award)
• Tier 3: $25,000-$100,000 ($5,000 award)
• Tier 4: $100,001-$1 million ($10,000 award)
• Tier 5: $1 million-$2.5 million($15,000 award)
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A RESOLUTION: CARES ACT OF 2020 MODIFICATION TO FIRST ROUND
SPENDING PLAN
• Previously awarded businesses from the first phase of the program will receive
additional grant funds, so that the combined total amount awarded in the first
and second phases will match the new grant tier award levels, without a need
to re-apply.
• Reducing the COVID-19-related loss in revenue required for eligibility from
25% to 15%. Any Businesses that applied in first phase, but failed to qualify
solely because it did not meet the 25% loss criteria, will automatically receive
the grant funding without reapplying if that business's initial application
demonstrated a 15% loss in revenue satisfying the revised criteria.
• Businesses that are able to demonstrate good standing (i.e. current on all Town
business licenses and taxes) as of their application date will be eligible to apply
for the grant.
• Grant application window will be extended to allow additional time for
businesses to complete the application process.
• If money is left over from the second phase of the grant program, a third phase
of the grant program will be initiated. In the third phase, grant award priority
will be given to businesses that have not received any CARES grant funding
from the Town of Leesburg.
• If additional funding is still available after the third phase, the Town will
conduct a lottery drawing from among all of the previously qualified Leesburg
businesses to provide additional grant funds until all of the business grant
money is allocated.
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A RESOLUTION: CARES ACT OF 2020 MODIFICATION TO FIRST ROUND
SPENDING PLAN
2. The remaining$197,439 in undesignated funds allocated for the Non-Profit Grant will
be equitably distributed among all of the qualified applicant nonprofits that confirm
that they are able to spend additional allocated funds on qualified expenses before
December 30th.
3. The Town Government Response allocation will be redistributed based on projected
demands to allow up to $200,000 to be used to provide a Virtual Learning Center for
school age children and child care for toddlers to be used by dependents of Town staff
until the end of 2020.
PASSED this 11`I'day of August. 2020.
fAX____
Kelly B k, A
Town of Leesburg
ATTEST:
(Zteacie. )362.4?
Clerk of Council
LF\LeesburgRMS\Town_Clerk\Resolutions\2020\0811 CARES Act of 2020-Spending Plan Update and Second Round Funding