REPORT TO COUNCIL
SUBJECT
Title
Update on Small Business and Nonprofit Grant Programs (Sunnyvale Cares) (Information Only)
Report
BACKGROUND
On April 14, 2020, the City Council authorized the City Manager to create a Small Business Assistance program with $600,000 as matching funds to provide up to $15,000 in grants to small businesses and $150,000 to assist nonprofits that support Sunnyvale residents and small businesses. Staff created two programs; Sunnyvale Cares Nonprofit Grant Program and Sunnyvale Cares Small Business Grant Program.
Sunnyvale Cares Nonprofit Grant Program
The program’s goal was to support Sunnyvale nonprofit organizations impacted by loss of revenue due to the COVID-19 pandemic. The City received 27 applications for a combined funding request of $600,005. Mayor Klein appointed an ad hoc advisory committee (Committee) to review the applications submitted and make funding recommendations to the City Council. The Committee members were Councilmember Russ Melton, Councilmember Mason Fong, and Mayor Larry Klein. The Committee forwarded its recommendation to the Council and on July 28, 2020, the Council approved the following funding levels for 15 agencies:
|
Name |
Grant Amount |
|
Bay Area Furniture Bank (BAFB) |
$11,000 |
|
Downtown Streets Team |
$10,000 |
|
Fremont Union High Schools Foundation |
$5,000 |
|
Historical Society and Museum Assoc. |
$6,000 |
|
The Lace Museum |
$5,000 |
|
Maker Nexus |
$16,000 |
|
Notelove |
$1,000 |
|
Our Daily Bread |
$13,500 |
|
SV Downtown Association |
$11,000 |
|
Self Help for the Elderly |
$11,000 |
|
Society of St. Vincent de Paul (SVdP) |
$21,000 |
|
SV Chamber of Commerce |
$21,000 |
|
SV Community Players |
$5,000 |
|
SV Education Foundation (SEF) |
$11,000 |
|
Sustainable Community Gardens/Charles Street Gardens |
$2,500 |
|
Totals |
$150,000 |
Sunnyvale Cares Small Business Assistance Grant Program
The City committed $600,000 in one-time matching funds to create this program. Additional funds were donations received from Google ($300,000), Intuitive Foundation ($200,000), Jay Paul ($100,000), LinkedIn ($100,000), Facebook ($50,000), and Lockheed Martin ($10,000). These generous donations increased the amount available for grants to $1,360,000. The City received 635 applications and awarded 194 grants. One $5,000 grant is pending since staff received notification from a business representative that they will forfeit the grant. The registered business owner is out of the country, so staff has been unable to confirm the forfeit. Once confirmed, the grant will be issued to the next business based on the lottery selection completed.
As staff was creating this program, several lessons were learned from observations of other agencies efforts. For example, staff learned that similar programs that relied on a first-come-first-serve basis caused a lot of anxiety for applicants and organizations. Applicants were anxious about applying as quickly as possible and the organizations had to determine the application time down to the tenth of a second. Therefore, staff used a lottery process to award the grants to eligible applicants. To date, the list of grants issued by The Enterprise Foundation to businesses are listed on the City’s website (Attachment 1).
Businesses that received grants represent a wide range of companies in our City. They include restaurants, nail salons, hair salons, auto repair shops, retail stores, and dental offices. Below are some emails staff has received from grant recipients.
“I wanted to take this opportunity to thank everyone involved including yourself, Mayor Klein, Vice Mayor Smith, the City Council members, as well as all the partners that made this possible. The grant amount will assist with our day to day operations during this difficult time. Thank you again and be well. “said Jay Ledford, Fun Services Bay Area, grant recipient.
“Hi SV Cares! We just want to thank you for saving us during a really rough time. We would not have been able to make payroll without your grant. From the bottom of our hearts, THANK YOU!” wrote Tania Cisneros, Co-Founder of In Gym.
“Dear Councilmembers--On behalf of the owner of Caldrius Health Inc, I sincerely appreciate your support and hard working. I have received the grant from SV cares, which helps Caladrius Health Inc to get over the shortage during this critical time. It is fortunate to have this grant and develop the business in city of Sunnyvale as our home. Thank you very much.” Wrote Ivie Chen, Caldrius Health.
As approved by Council, staff contracted with The Enterprise Foundation, a nonprofit organization, to issue the grants. The Enterprise Foundation and the City will work together in completing the program and will jointly perform an audit to close out Sunnyvale Cares Small Business Grant Program.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City's official-notice bulletin board outside City Hall, Sunnyvale Public Library and Department of Public Safety. In addition, the agenda and report are available at the Office of the City Clerk and on the City's website.
Staff
Prepared by: Connie Verceles, Assistant to the City Manager/Economic Development
Reviewed by: Teri Silva, Assistant City Manager
Approved by: Kent Steffens, City Manager
ATTACHMENT
1. Sunnyvale Cares Webpage