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Home My WebLink About1N1Cit}! Council Staff Re{Jorl DATE: March 25, 2021 CONSENT SUBJECT: PALM SPRINGS COVID-19 SMALL BUSINESS ASSISTANCE PROGRAM UPDATE FROM: David H. Ready, City Manager BY: Community & Economic Development Department SUMMARY At the March 11, 2021, City Council meeting the City Council requested that all COVID business assistance loans be provided to the City Council for its review. ATTACHMENT 1 to this staff report provides additional businesses recommended for approval under the COVID-19 Small Business Assistance Program (the "Program") RECOMMENDATION 1) Approve businesses listed on ATTACHMENT 1 for participation in the COVID-19 Small Business Assistance Program; and, 2) Direct staff as appropriate BACKGROUND At the January 28, 2021 City Council Meeting, the City Council approved the details for the City's $1,000,000 COVID-19 Small Business Assistance Program (the "Program"). In establishing the Program, the City Council agreed on the format of a flat $10,000 forgivable loan with a loan forgiveness period requiring businesses to remain open for at least 6 months with the following terms: ❖ Zero-interest loan ❖ Loan term is 6 months ❖ Loan is forgiven if business is in good standing and remains in good standing (does not violate any state, County or local emergency orders), opens within 30 days of receipt of funds, and remains open throughout the loan term ❖ Loan is reduced and discounted by each month the business remains open, and extinguished at the end of the loan term ITEM NO.~\-~_--- 2City Council Staff Report March 25, 2021 -Page 2 Small Business Assistance Program Update The eligibility requirements approved at the January 28, 2021, City Council meeting were: ❖ Independently owned local business or non-profit; ❖ Employ not more than 25 full-time employees with priority given to those with O to 5 employees; ❖ Limited to most directly impacted businesses: restaurant, retail, personal care services (hair salons/barbers, nail salons, facial/esthetician services, massage therapy, fitness centers/gyms) with a storefront physically established within the City of Palm Springs; ❖ Priority for businesses that have been closed for the longest period of time (bars, personal care services, etc.) ❖ Have a current City of Palm Springs Business License and have been in operation as of May 1, 2020; ❖ Provide a written statement demonstrating a hardship due to COVID-19, such as a loss in revenue; ❖ Provide a written statement demonstrating inability to access or qualify for current state and federal financial assistance; ❖ Comply with the City's non-discrimination policy; ❖ No repeated violations As of March 15 the City has received 145 applications from small businesses seeking financial assistance through the Program. The City Council has already approved 27 businesses for the forgivable loans (ATTACHMENT 2) according to the criteria listed above. STAFF ANALYSIS An additional 20 applications (ATTACHMENT 1) have been reviewed and at this time staff is recommending these for approval. All 20 businesses meet the above criteria and are within the priority groups. The City Council further agreed on the following clarifications to the Program criteria and priorities: 1. Brick and mortar businesses -those who lease or own a physical commercial space or building -to receive priority, as opposed to home based or virtual businesses. 2. Contract employees at hotels and other establishments where it is not customary or legal to have contract employees (particularly long term contract employees) must be counted as regular employees. Businesses such as salons where it is common practice to have independent contractors work in the salon do not need to count independent contractors who rent chairs or spaces, as employees. 3. Franchise / Chain Stores with more than five locations require approval by City Council. 3City Council Staff Report March 25, 2021 -Page 2 Small Business Assistance Program Update 4. Businesses legally not allowed to be open due to COVID, but have entered a lease and commenced lease payments by May 1, 2020, count as being in operation by May 1, 2020, 5. Businesses having received a citation for violating COVID operating requirements will not be eligible. 6. Program to close, and no more applications to be accepted, after March 31, 2021. The 20 additional applications being submitted (listed in ATTACHMENT 1) also qualify under these criteria. As will be discussed at this City Council meeting, to reduce the negative impact COVID has had on commercial landlords, an additional requirement for eligibility may be that the tenant either is current on back rent or has entered into a written agreement with the landlord for the payment/re-payment of rent. This would help incentivize tenants to either pay their rent or come to an agreement that is mutually agreeable to both the tenant and the landlord. FISCAL IMPACT: The City Council has previously allocated $1 million for small business COVID forgivable loans. SUBMITTED: Marcus Fuller, P.E., M.P.A., P.L.S Assistant City Manager ~ ~ -z .22~ David H. Ready,Esq. Ph.D City Manager Attachments: 1. Applications Recommended for Approval 2. Applications Approved on March 11, 2021 4ATTACHMENT 1 5COVID 19 Small Business Financial Aid Program COVID 19 Small Business Loan Program Index Date # of FTEs Applicant First Name Applicant Last Name Business Name Business Address 1 1 Raphael Benomar Raphael Salon 102 E. Amado Rd. 2 1 James Entwisle Brush Palm Springs 1090 N. Palm Canyon Dr. Ste. H 3 1 Lolita Falk Misfits and the Color Bandits 1199 Ramon Road 4 1 Christina Granados Spectrum Salon and Spa 405 N. Palm Canyon Dr. 5 2 Jessica Holohan Le Star Tan Spa & Tanning 555 S. Sunrise Way 6 1 Susan Lukens Suzanne's Salon of Beauty 279 Araby-Sahara MHP 7 1 Paul Mediano Heads Up Hair Designs 1199 E. Ramon Rd. 8 1 Amber Meyers Being Beautiful by Amber @ Salon 119 245 S. Palm Canyon 9 2 Julie Nguyen Eden Nails 1751 N. Sunrise Way, Ste. F3 10 1 Elena Popa Hair by Elena Salon 4S54 E. Camino Parocela 11 1 Rudy Sandoval Rudy the Hair Artist 1199 Ramon Road, Ste. 2 12 2 Evan Spencer Paramorris Health Care Solutions 1733 N. Palm Canyon Dr. Suite E & F 13 4 Ngoc Truong Finesse Nails and Spa 5200 E. Ramon Rd., Ste. H-2B 14 3 Holly Vo Dang Nail Pro 425 S. Sunrise Way, H4 15 2 Reynaldo Duran Pilates Plus Palm Sprlmi:s 611 S. Palm Canyon Dr. Suite 14 16 4 Kristen Olson Urban Yo11:a Center 1695 N. Sunrise Way 17 1 Gwendolyn Gatti Tops n Tees 278 N. Palm Canyon Dr., Ste. A 18 1 Govind Lalani Lina's Gift Shoo 400 E. Tahauitz Canvon Wav 19 2 Veronica Murray Veronica's Pottery and Metal Art 565 S. Williams Road 20 2 Reynaldo Romero Las Palmas Brewing 461 N. Palm Canyon Dr. 3/18/2021 12:05 PM i;I"" .•• ' - .. ,, ... ~ ,.·; ,. • 'L .. " Type of Business Personal Care Personal Care Personal Care Personal Care Personal Care Personal Care Personal Care Personal Care Personal Care Personal Care Personal Care Personal Care Personal Care Personal Care Personal Fitness Personal Fitness Retail Retail Retail -Bar ".'~ ~ -. .. .v' - t. Applications for City Council Approval March 25, 2021 6ATTACHMENT 2 7COVID-19 SMALL BUSINESS ASSISTANCE PROGRAM # # of FTEs Applicant First Name Applicant Last Name Business Name Business Address Type of Business 1 4 Brien O'Brien Brien O'Brien Salon 515 N. Palm Canyon Dr., Ste. A2 Personal Care 2 1 Jimmie Read CUT Barber 1109 N. Palm Canyon Dr. Personal Care 3 1 Dominic Lewis Dominic Lewis 1750 E. Arenas Rd., Ste. 4 Personal Care 4 1 Bret Paul Caudill Enso Aveda Salon 133 La Plaza Personal Care 5 1 Joshua Fuller Josh Fuller Hair & Makeup Services 2281 E. Andreas Road Personal Care 6 1 Loretta Brake Loretta's Hairstyling 555 S. Palm Canyon Dr., Ste. A107 Personal Care 7 3 Carmelita Yeager Norma's Delight, Inc. dba Delight Nails & Spa 4751 E. Palm Canyon Drive Ste. D Personal Care 8 4 Jessica Schultz Organic Glow Skin Studio Palm springs 1546 N. Palm Canyon Drive Personal Care V') 9 1 Hal Lewis Paradise Thai Spa 1000 S. Palm Canyon Dr., #103 Personal Care z 10 2 Silvia Barrios Perfect Hair Salon 1717 E. Vista Chino, Ste. J6 Personal Care 0 11 4 Christoffer Dordell Sunrise PalmBay LLC, dba Club Pilates Palm Springs 425 S. Sunrise Way, Suite H2 Personal Fitness ~ 12 1 Amy Hurtak Turquoise Salon 1416 N. Palm Canyon Drive Personal Care u 13 5 Gregory Mandallaz Bootlegger Tiki 1101 N. Palm Canyon Bar ::::; 14 1 Simonetta Rainieri Gelato Granucci 301 N. Palm Canyon Drive, Suite 104 Restaurant a. a. 15 <( 16 5 Rosario Cultraro ii Giardino Rlstorante Italiano 333 S. Indian Canyon Dr. Ste. K & L Restaurant C 17 2 Mark Cargasacchi Jalama Wines 119 La Plaza Retail/ Tasting Room w 18 3 Larry Keller Jus Chillin 190 Tahquitz Canyon Way Restaurant > 19 3 Scott Stokes La Quinta Brewinit 301 N. Palm Canyon Drive Bar 0 ci::: 20 1 Matthew Palermo Motaghedi Palermo's New York Pizza 400 S. El Cielo Suite C Restaurant a. 21 4 Arthur Vasquez Persimmon Bistro 101 N. Museum Dr. Restaurant a. 22 4 Dwight James Mortensen V Wine Lounge 600 E. Tahquitz Canyon Way Bar <( 23 5 Craig Attebury Gay Mart 305 E. Arenas Road Retail 24 25 4 Jeff Witthuhn Peepa's 120 North Palm Canyon Drive Retail 26 2 Schuyler Brown Seaplane 1009 N. Palm Canyon Drive Retail 27 1 Trevor Wayne Trevor Wayne Pop Art 386 N. Palm Canyon Dr. Retail 28 1 Tetyana Tkachenko Valerie In Style 148 N. Palm Canyon Drive Retail 29 5 Mark Weis Cole Motor Lodge LLC 2323 N. Palm Canyon Dr. Hotel/Restu rant 30 3/3/2021 6:53 PM