20-051 RESOLUTION NO. 20-051
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SOUTHLAKE, TEXAS, AUTHORIZING THE CREATION OF THE
SOUTHLAKE BUSINESS RELIEF GRANT PROGRAM UNDER TEXAS
LOCAL GOVERNMENT CODE 380; ESTABLISHING THE BUSINESS
ELIGIBILITY CRITERIA; PROVIDING A FUNDING SOURCE FOR THE
GRANT PROGRAM; ESTABLISHING THE GRANT AWARD TIERS;
AND PROVIDING FOR AN EFFECTIVE DATE
WHEREAS, the City Council of the City of Southlake, Texas, recognizes the hardship that the
COVID-19 virus has caused for Southlake local businesses; and
WHEREAS, pursuant to Texas Local Government Code Section 380.002(b) the Economic
Development Investment Fund may be used to provide economic support to businesses that have
experienced disruption due to COVID-19 related mandates in the amount of ONE MILLION DOLLARS
($1,000,000); and
WHEREAS, the City Council of the City of Southlake has determined it to be in the best interests
of the community to authorize the creation of a business relief program to further aid in the recovery of the
local economy; and
WHEREAS, the City Council of the City of Southlake has determined it to be in the best interest of
the City to have City staff to administer a program in compliance with the criteria set forth in this resolution;
and
WHEREAS, the City Council of the City of Southlake has determined that implementing such a
program will assist in achieving its economic recovery goals; and
WHERAS, the City Council of the City of Southlake is committed to the recovery, growth and
stimulation of sustainable local businesses within the community.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
SOUTHLAKE, TEXAS, THAT:
Section 1. In response to the economic impacts of COVID-19 (coronavirus) to the local
business community, the Southlake City Council is authorizing a stimulus program
to assist businesses negatively affected by the pandemic through the Southlake
Business Relief Grant Program. The Southlake Business Relief Grant Program is a
local economic development grant program to help reduce the economic strain on
local businesses.
Section 2. The City Council of the City of Southlake, Texas hereby authorizes the creation of
the Southlake Business Relief Grant Program, subject to its management by the
City of Southlake, funding by the Economic Development Investment Fund in an
amount not to exceed $1,000,000.
Section 3. Individual grants will be awarded to Southlake businesses in an amount not to
exceed $10,000 based on a tiered approach consisting of the following:
a) Tier 1 - Business operations completely closed and were deemed as a non-
essential businesses per local/county/state executive orders during COVID-19
can receive up to 100% of eligible grant.
b) Tier 2 - Business operations partially closed and were deemed as an essential
business per local/county/state executive orders during COVID-19 can receive
up to 75% of eligible grant.
c) Tier 3 - Business operations that closed and were deemed as a non-essential
businesses per local/county/state executive orders during COVID-19 but had the
capacity for their business to continue operations through telecommuting/online
operation can receive up to 50% of the eligible grant.
If available eligible business applications exceed the funds available for distribution,
the City will prioritize funding grants for Tier 1 businesses first, followed by Tier 2
and Tier 3 businesses.
The City also reserves the right to divide the grant award in equal amounts to
distribute to eligible businesses.
Section 4. Grant funds are available to businesses who meet the following criteria:
a) Business Types:
i. Corporation
ii. Individual
iii. Sole proprietorship
iv. Single-member limited liability company (LLC)
V. LLC treated as a partnership
vi. LLC — C corporation
vii. LLC — S corporation
viii. Partnership
b) 50 or fewer employees
c) Businesses physically located within the City of Southlake, with a Southlake
mailing address
d) Registered to do business in the State of Texas
e) Business must have been in operation since January 1, 2019
f) Eligible businesses must be able to demonstrate that the business was profitable
prior to the COVID-19 outbreak and that they have experienced a loss of income
due to COVID-19.
g) Business must affirmatively declare that they were not in arrears on rent prior to
February 29, 2020, and they must provide their landlord's contact information.
h) Business must be in good standing with the City of Southlake, Tarrant County
and other taxing entities. If a business has outstanding payments due to the
City, it may however, first apply grant funds to the amount owed first, with any
remaining distributed to the business.
i) A business owner applying for grant must own 51% or more of the business
j) Businesses that received assistance from SBA, CARES Act, PPP or other grant
programs are still eligible
Section 5. Grant funds will not be available for the following types of businesses:
a) Ineligible business types:
i. National/Regional chains
ii. Corporate owned franchises
iii. Home-based businesses
iv. Permanently closed businesses
V. Non-Profits
vi. Sexually/Adult-Oriented Businesses
vii. Professional Services deemed essential by local/state government
viii. Lobbying organizations and political organizations subject to Internal
Revenue Code 527
ix. Gambling Concerns, including casinos, racing operations or other
activities whose purpose involves gambling
X. Concerns engaged in illegal activities under federal, state or local
laws
xi. A business that is otherwise prohibited by federal or Texas law
xii. A business that is ineligible or precluded to receive federal or State
of Texas funding due to federal laws (including but not limited to the
CARES Act) or Texas laws
xiii. Multi-level marketing concerns
xiv. Governmental/taxing agencies/departments
Section 6. Funds can be used to reimburse the costs of business interruption due to COVID-
19 as a result of required closures, voluntary closures to promote social distancing,
or decreased customer demand. Examples of these costs include:
• Working capital.
• Machinery and equipment.
• Payroll expenses.
• Heath care benefits.
• Contract labor.
• Supplier payments.
• Rent, lease or mortgage payment for business real property used for business
purposes. (Ex. A storefront or warehouse. Does not include personal residence.)
• Rent, lease or purchase payment for business property (Ex. delivery vehicle,
food truck, kitchen equipment, technology, payment, and communications
systems/equipment.)
• Utility payments for business properties. (Not including personal residence.)
• Cost of critical business operations. (Ex. raw materials, marketing expenses,
etc.)
• Personal Protective Equipment (PPE), sanitation supplies and equipment.
Section 7. Businesses that receive grant funding will be required to document how the funds
are used and provide the necessary financial information such as bank statements
and other information as deemed necessary by the City of Southlake Chief Financial
Officer. This documentation will need to be provided to the City no later than July 1,
2021.
Section 8. Any businesses seeking to receive grant funds from the Southlake Business Relief
Grant Program shall be required to provide identification and financial information to
the City of Southlake, within the timeline established as determined by the City, for
review and consideration that may include but is not limited to driver's license, bank
statements, tax returns, Form 941 and Form W-9.
Section 9. Nothing in this resolution, the Southlake Business Relief Grant Program, or by the
City of Southlake shall be construed to suggest or imply that the City of Southlake
is under any obligation to provide any grant or grant fund amount to any applicant
irrespective of business eligibility and meeting all established criteria.
PASSED AND APPROVED on this day of , 2020
Mayor Laura Hill
ATTEST: APPROVED AS TO FORM:
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City Se r ary C t'y Attorney