GLOUCESTER CITY SMALL BUSINESS ASSISTANCE PROGRAM REQUIREMENTS

The City of Gloucester has appropriated $250,000 of its federal Community Development Block Grant CARES Funds (CDBG-CV1) for the COVID-19 Small Business Assistance Program. This program is being established to provide working capital funds to the community’s small businesses that the COVID-19 pandemic has severely impacted.

A. PROGRAM OBJECTIVES

The Gloucester City, Small Business Assistance Program, has been established to provide working capital funds to community businesses economically impacted by the COVID-19 virus. The program component makes funds available for 120 days of verifiable working capital up to a grant ceiling of $7,500.

CDBG Small Business Assistance funds may be used to assist Gloucester City retail, restaurants, entertainment, and nonprofessional service businesses with no more than 25 employees (full time equivalent positions) that were in business as of December 31, 2019. To be eligible, the business must have one employee, which can be the business owner, who will be retained and meets the low/moderate income requirement; or the business must be located in an eligible program area. Eligible businesses should have solid commitments to remain open or reopen, and retain or re- employ at least one permanent employee. Businesses deemed ineligible by the US Dept. of Housing and Urban Development will not qualify.

Businesses must enter into a Financial Assistance Agreement, referred to as the “Participation Agreement,” at agreed upon terms with the City.

B. ELIGIBLE ACTIVITIES

The business may use funds for working capital expenses. Eligible expenses include payroll, rent/mortgage, utilities such as internet or electricity, advertising/marketing, insurance and/or cost to comply with the State of New Jersey and any local social distancing policies. Public utility payments and taxes (unless they are in escrow and included in a regular mortgage payment) are specifically excluded from eligible expenses

C. REQUIREMENTS, DISCLAIMERS, FEDERAL COMPLIANCE AREAS

The following requirements apply to all applications submitted for consideration under the CDBG-CV1 Program:

1. 1)  The Business must be located within Gloucester City;
2. 2)  The grant funds may be used to pay eligible expenses for a 120-day period;
3. 3)  Applicant must provide list of expenses to be paid with grant application and backupdocumentation;
4. 4)  All grants must meet the CDBG National Objective of Low/Moderate Income Benefit

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for the participating business. The business must provide documentation that it will retain at least one permanent position held by a low-or moderate income employee and that the jobs would be lost without the CDBG assistance. The business must document the income of the low- or moderate-income employee through a certification by the business owner that the position is held by a low-moderate income person (based on a one-person household) or the business can presume that the job is held by a low- or moderate-income person if 1) the employee resides in a qualified low-income area or 2) the business is located in a qualified low-income area. Applicant must provide list of employees and their salaries;

5. 5)  Applicant must certify that they will remain open or reopen if grant funds are received. If the applicant doesnot remain open or reopen, the grant funds must be returned; and
6. 6)  Applicant will be required to complete a grant application and sign a Participation Grant Agreement.

Funds are available to all eligible businesses meeting program requirements until all funds are distributed. The City reserves the right to reject applications that it deems do not meet the criteria of the program.

D. SPECIAL REQUIREMENTS

In addition to those listed above, the following requirements apply to applications submitted for consideration under the CDBG-CV1 Small Business Assistance Program:

1. 1)  The City will review all applications to determine whether CDBG-CV1 funding is appropriate. The business must submit supporting financial data as indicated. The City determine whether funding is appropriate and whether the activity complies with the guidelines for evaluating project costs and financial feasibility set forth in CDBG regulations at 24 CFR 570.209(a). A financial review will be conducted to ensure that there are no Duplication of Benefits;
2. 2)  The amount of CDBG grant assistance provided to a business will be limited to the amount, with appropriate terms and conditions, sufficient to allow continuity of the business for 120 days or the grant ceiling, whichever is less, without substituting CDBG-CV1 funds for available private debt, cash equity or other federal assistance programs.
3. 3)  The Department of Housing and Urban Development prohibits the “Duplication of Benefits.” A duplication of benefit occurs when funding is provided for the same costs paid by other sources, including private insurance, and the total amount received exceeds the total need for those costs. The agreement will require businesses to report all sources of funds received, and/or anticipated after implementation of the funded activity. Applicant must provide a list of any and all funding received from any source after March 16, 2020. Each business will be required to complete a duplication of benefits report prior to the disbursement of the final payment; and

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4) The following will be required for all businesses as a condition of a CDBG-CV1 grant award:

a. A copy of the most current bank statement for the business.
b. A copy of the NJ-WR30 for proof of employees, or a tax return for sole proprietorships. c. Copy of lease, utility bills and real estate tax bill.
d. A listing of all employees as of January 1, 2020, employees hired since then, and their

status.
e. A list of additional CARES grants or Small Business Assistance received since January 1,

2020.
f. A Participation Agreement between the City of Gloucester and the eligible business

receiving funding.

5. APPLICATION NARRATIVE RESPONSES and INCLUSIONSAll applications must include the following narrative responses and requested documentation:
   1. 1)  Gloucester City-CDBG-CV1Grant Application – The Grant Application must be completed by the business (see Application Form).
   2. 2)  Budget Benefiting businesses should complete the Budget Application (see Application Forms).
   3. 3)  Project Summary – The benefiting business must provide a summary of their present situation. This should include a brief description of the business, e.g., business type, its product or service, and how long it has existed. Describe how the CDBG funds will be used and reasons why they are needed for the business to be in a position to retain jobs. Explain how COVID-19 has adversely impacted business revenue, and identify specific needs.
   4. 4)  Employment Documentation (form is found in the Application Forms section.) A listing of all employees as of January 1, 2020, employees hired since then, and their status, must be completed by the benefiting business.
   5. 5)  Business Certifications signed by the benefiting business’s authorizedsignatory.
   6. 6)  Participation Agreement between Gloucester City and the business that will receivefunding.
6. APPLICATION REVIEW AND EVALUATION PROCESSThe screening and review process for the program is designed to ensure that limited CDBG program funds are awarded to businesses that demonstrate the need for financial assistance and meet the qualifications.

   The criteria noted below will be used to evaluate all applications requesting funding under the Gloucester City Small Business Assistance program, as well as determine the appropriate level of financial assistance:

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1. 1)  Project Benefit (information to be provided in Project Summary) Three factors will be considered under this criterion:
   1. Project Need – Project need is defined as the inability of the business to maintain sufficient permanent funding to sustain normal operating working capital needs. Describe in sufficient detail the need for the assistance and the specific role of CDBG-CV1funding, including any other options which have been pursued.
   2. Financial Feasibility – Determination must be made as to how CDBG-CV1 funds can address the business’s need to provide adequate working capital in addressing current and future working capital needs, like payroll, operating needs and short- term liabilities.
   3. Commitments for Job Retention – Benefiting businesses must demonstrate they have solid commitments in place to remain open (for one year) OR reopen and retain or re-employ permanent jobs prior to the grant end date (one year from grant award).
2. 2)  National Objective –Low/Moderate IncomeAll grants must meet the CDBG National Objective of Low/Moderate Income Benefit for the participating business. The business must document that it will create, retain or re-hire at least one permanent job held by a low- and moderate-income employee and that the jobs would be lost without the CDBG assistance. The business must document the income of the low- or moderate-income person through a certification by the business owner that the job is held by a low- moderate income person (based on a one-person household) or the business can presume that the job is held by a low-or moderate-income person if 1) the employee resides in a qualified low-income area or 2) the business is located in a qualified low-income area. Applicant must provide a list of employees and their salaries.

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GLOUCESTER CITY SMALL BUSINESS ASSISTANCE PROGRAM APPLICATION FORMS

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Submission Cover Letter

To Gloucester City:
The (Name of Business) is submitting an application for a Gloucester City Small Business Assistance grant under the Community Development Block Grant (CDBG-CV1) Program. The grant request is in the amount of $

to be used to provide working capital needs for (Name of Business) , which has been a part of the Gloucester City

community since and normally employs Employees.(number of employees)

If we receive the assistance from the City, we will be able to retain ___ positions held by low/moderate income person or persons who reside in low/moderate income neighborhoods. These positions are as follows:

Name/Address Title Income as of January 2020

(Name of Business) has been negatively impacted by the COVID-19 emergency and requires urgent assistance. We appreciate your consideration.

Sincerely,

I. GENERAL INFORMATION Name of Applicant: _

Name of Business: Address of Business: Mailing Address: Contact Person: Work Telephone #: Home Telephone #: Email address:

OWNERSHIP & MANAGEMENT

Structure of Business (Check One)

Fax #: Cell #: Website:

II.

☐C-Corporation ☐Limited Liability Co. (LLC)

☐Sub Chapter S Corporation ☐Partnership

☐Sole Proprietorship ☐Trading As/Doing Business As

Ownership of applicant company (List all owners, stockholders and members and percent ownership): USE

SEPARATE SHEET IF NECESSARY.

Name Social Security No.

1.

2. 3.

COMPANY HISTORY/PROFILE

Month/year Business was established:

Line of Business:
Tax ID or EIN #: ___________________

Date of Birth

Percentage Owned

III.

IV. EMPLOYEE INFORMATION:
Number of employees: _________ Full-time: Part-time: _______

Provide a list of all personnel that were employed as of January 1, 2020 as well as new hires since that date. Include the Business owner(s). Indicate status of each employee.

CURRENT STATUS

TOTAL:

V. MONTHLY EXPENSES

Provide the appropriate information below reflecting your business’s monthly budget. These line items are intended to provide an accurate financial picture. These line items are for informational purposes, not indicative of eligible expenses.

Budget Item

Personnel (Salary & Wages) Rent/Mortgage

Real Estate Taxes (if not included in rent/mortgage)

Insurance
Utilities
Inventory
Other (Specify)
Other (Specify)
Other (Specify)
Total of All Expenditures

VI. SUPPORT INFORMATION & STATEMENTS REQUIRED

Monthly Expenditures

1. Copy of NJ-WR30 for proof of employees
2. Income tax return for sole proprietorships

2. Copy of Lease
3. Copy of utility bills
4. Real estate tax bill
5. Other Grants or loans received from CARES Grants, Insurance, State Funding or SBA Loans

The Business certifies that the information and documentation contained in this application is accurate, complete and true to the best of his/her knowledge. The Business also certifies that it has read and understands the application guidelines.

______________________________

Name of Business:

______________________________

Date:
Please email completed application to Lori Ryan at lryan@cityofgloucester.org

______________________________

Signature/Title:

______________________________

Signature/Title:

Project Summary

Provide a summary of the business’ present situation. This should include a brief description of the Business, e.g., type of firm, its product or service, and how long they have been in business. Describe how the CDBG funds will be used and reasons why they are needed in order for the Business to be in a position to retain jobs. Specific needs need to be identified. Explain what circumstances make this project necessary, in maintaining adequate permanent working capital to sustain operating needs.

Required Documentation

Insert the following documents here from the benefiting business:

• –  Income Tax Returns
• –  NJ-WR30 Form
• –  Lease, Real Estate Bills, & Utility Bills
• –  Most Recent Bank Statement
• –  Documentation of any additional CARES Grants, Insurance, State Funding or SBA Loans received, includingCARES(PPP) or Small Business Assistance Loan Approval Documents Please make certain to redact (mark out) the account number.

BUSINESS CERTIFICATIONS

The Business understands that no aspect of the project proposed for assistance will commence prior to the award of funds and execution of the Participation Agreement.

The Business certifies that it is a Business in good standing, authorized to do business in New Jersey and has no delinquent tax liabilities. The Business further authorizes Gloucester City to seek a tax clearance letter from the NJ Department of Revenue and authorizes the Department of Revenue to provide such a letter stating whether the records of the Department show that Borrower is in compliance with all tax acts administered by the Department of Revenue and to which Borrower is subject.

The Business also certifies that no tax liens, including but not limited to, municipal, county, state, or federal, have been filed against the Business, any partners of the Business, the majority shareholder of the Business, or in the name of a related business owned by the recipient.

The Business authorizes the City to verify in any manner deemed appropriate any and all items indicated in this application which includes information obtained through the NJ Department of Employment Security, Consumer Credit Bureau Services, business reporting services such as Dun and Bradstreet and criminal history record check.

The Business certifies that all information and documentation contained in this application is accurate, complete and true to the best of his/her knowledge.

The Business certifies that it has read and understands the application guidelines.

Signature of Chief Executive Officer

Typed Name of Chief Executive Officer Name of Business

Business Address

Date

FEIN #

DUNS # SIC #

PARTICIPATION AGREEMENT

THIS Agreement (this “Agreement”) dated the _____________, 2022, is made between _____________________________________ (the “Business”) and the City of Gloucester, a municipal corporation of the State of New Jersey, whose address is PO Box 150, 512 Monmouth Street, Gloucester City, New Jersey (the “City”).

RECITALS

The City of Gloucester has appropriated a portion of its federal Community Development Block Grant CARES Funds (CDBG-CV1) to establish the COVID-19 Small Business Assistance Program (the “Program”). The Program has been established to provide working capital funds to the community’s small businesses that have been severely impacted by the COVID-19 pandemic.

AGREEMENT

In consideration for the mutual promises contained herein and for other good and valuable consideration, the parties agree to the following:

1. The Business warrants and represents that
   •   it has no more than 10 employees including full and part-time employees; it was in business as of December 31, 2019;
   •   the Business is currently open or will reopen when permitted under guidelines issued by the State of New Jersey;
   •   it meets the CDBG National Objective of Low/Moderate Income for the benefiting business. The business must document the income of the low- and moderate-income person through a certification by the business owner that the job is held by a low-moderate income person (based on a one-person household) or the business can presume that the job is held by a low- or moderate-income person if 1) the employee resides in a qualified low-income area or 2) the business is located in a qualified low-income area.
   •   the Business has not been deemed ineligible for COVID-19 relief by the U.S. Department of Housing and Urban Development;
   •   the Business maintains its principal place of business in the City of Gloucester;
     the Grant will not duplicate other federal aid received by the business as a result of the COVID- 19 pandemic; and
   •   all information contained on the application for this Grant is true and correct.
2. The Business acknowledges and agrees that the representations contained in paragraph 1 above are a material part of this Agreement. If any of the representations in paragraph 1 above are not true, the Business shall be deemed to be in default under the terms of this Agreement.

3. It is a condition of the Grant that the monies received by the business be used to pay eligible expenses for a 120-day period from the date of the Grant. Eligible expenses include payroll, rent/mortgage, utilities, advertising/marketing, insurance and/or cost to comply with the State of New Jersey and any local social distancing policies. Specifically excluded from eligible expenses are public utility payments, and taxes (unless they are in escrow).
4. The Business agrees to remain open or reopen if grant funds are received.
5. The Business agrees to comply with all State and Local guidelines as they pertain to social distancing, reopening, or other issues related to the COVID-19 pandemic.
6. Upon the execution of this Agreement, the submission of an application for the Grant and approval of the Grant, the City will provide the Business with a Grant of up to $7,500.00.
7. Provided that the terms of this Agreement are fully complied with and the Business is not otherwise in default under the terms of this Agreement, the Grant does not have to be repaid.
8. In the event the Business violates any of the terms or conditions of this Agreement or otherwise defaults under this Agreement the full amount of the Grant shall be immediately due and payable.
9. By signing this Agreement on behalf of the Business the undersigned hereby guarantees repayment of the Grant in the event the Business violates any of the terms or conditions of this Agreement or otherwise defaults under this Agreement.
10. The Parties acknowledge and agree that the amount of the Grant to be provided to the Business Is $ ________________________________.

IN WITNESS WHEREOF, the parties executed this Agreement the day and year first above written. (Business Name)

By: (Name of Officer) President

Address

By: Honorable Dayl Baile Mayor

SEE FORM