On March 27, 2020, Congress passed and signed into law by the President of the United States the Coronavirus Aid, Relief, and Economic Security (CARES) Act that advanced a $2 trillion economic relief package. A portion of the CARES Act funds were allocated to the County of Orange via the Coronavirus Relief Fund. The Orange County Board of Supervisors authorized distribution of $15 million to each of the Supervisory Districts of which Supervisor Andrew Do earmarked these funds to provide economic support in the First District as follows:

• $13 million for grants of $10,000 each, to be awarded by lottery to eligible small businesses, non-profits, and home-based businesses in the First District; and,
• $2 million to be disbursed among the cities of Santa Ana, Garden Grove, Westminster, and Fountain Valley for economic development efforts in designated business districts as determined by each City Council.
• The city allocations cannot be used for projects identified in the cities’ 2019-2020 budgets and must be related to the effects of the COVID-19 pandemic. 

The funds shall be allocated based on the number of non-farm business tax filings reported per city by the Internal Revenue Service, and Orange County Fire Authority data for Midway City, with Midway City’s figures, folded in with the City of Westminster:
 

The City and County of Orange entered into a Subrecipient Agreement to receive Coronavirus Relief Funds for economic support in the amount of $617,600 to assist small businesses impacted by COVID-19. The City intends to deployed these funds toward support of local Garden Grove small businesses and non-profit organizations impacted by COVID-19 through the development of a new Micro Business Relief Grant Program. The Program anticipates award of approximately 120 grants to qualified local small businesses in an amount of $5,000 toward rent relief payments and/or business innovation activities to promote business reopening efforts. Certain Micro Business Relief Grant eligibility requirements include:

• The business shall be independently owned and operated businesses (for-profit or non-profit) located in the city of Garden Grove.
• The business has a maximum of ten (10) full-time equivalent (FTE) employees or less (including the owner).
• The business has a minimum six (6) month operating history.
• The business must be an existing legal business (with an active store front) with a valid City business license, proper insurance, and all applicable required permits.
• The business has experienced approximately a 25% reduction in revenue due to COVID-19 and is able to provide documentation showing the loss in revenue.
• The business has no code violations in the last twelve (12) months.
• The business continues to operate legally during the COVID-19 pandemic.
• Individuals that own or have interest in more than one business will be limited to one grant.
• Owner/Officers must reside in Orange County.

Related to grant adminstration, two progress reports are required under the Subrecipent Agreement and due to the County on October 1, 2020 and January 15, 2021, respectively. Each Progress Report shall detail the eligible expenses and use of the grants, and identify the name and location of each small business grant recipient.

The City has received the grant allocation in the amount of $617,600. Appropriation of the grant funds are required for Fiscal Year 2019-20 and any unspent funds will be carried over into Fiscal Year 2020-21. Any unspent grant proceeds as of December 30, 2020 must be returned to the County by February 1, 2021.

It is recommended that City Council:

• Appropriate Coronavirus Relief Fund grant in the amount of $617,600 to the Fiscal Year 2019-20 budget and carryover any unused funds into Fiscal Year 2020-21; and

• Return to the County by February 1, 2021 the amount remaining unspent as of December 30, 2020.