Municipality Of Chatham-Kent

Finance, Budget & Information Technology Services

Financial Services

To: Mayor and Members of Council

From: Matt Torrance, MBA, CPA, CGA Director, Financial Services

Date: July 29, 2020

Subject: Small Business Recovery Grants ______________________________________________________________________

Recommendation

It is recommended that:

1. The 70 applicants identified in Appendix A be approved to receive the Chatham-Kent Small Business Recovery Grant in the amount of $2,857 each.

Background Council approved the following recommendation at the June 15, 2020 Council meeting: “1. A $200,000 Covid-19 Chatham-Kent Small Business Recovery Grant Program be developed by Community Development and Financial Services staff, to begin achieving the goal of Recommendation #6 as found in the Chatham-Kent Economic Recovery Task Force (CKERTF) report, by redirecting funds and reducing service levels from the following approved programs: a) $200,000 from the Together CK: CK Plan 2035 Community Projects budget.” Subsequent to the Council meeting, the Small Business Recovery Grant Committee brought forward an Information Report outlining the criteria for the program (Appendix B) to the June 29 Council meeting. At that meeting, Council approved the following motion with respect to the grant program:

“That the report be accepted with the following changes:

1. That the application process remain open until July 16, 2020. 2. That not for profits and charities be moved to the eligible listing. 3. That from the Eligibility Criteria the term “or that relief was insufficient” be

removed.

Small Business Recovery Grants 2

4. That a member of the not for profit sector be included on the Small Business Recovery Grant Committee.

5. That a summary of applications be brought back to Council after the application period closes.”

Comments

As per Council’s direction, Chris Pegg was added to the committee as a member from the not-for-profit sector. Chris is the Asst Executive Director of the CK Community Foundation and a member of the United Way’s Co-investor Group.

Applications to the program were accepted from July 2 until July 16. A total of 169 applications were received. A breakdown of the applications based on information submitted by the applicant is provided by community, business sector and business type, in Appendix C.

The Small Business Recovery Grant Committee met on July 21 to review the list of applicants and discussed how the approved eligibility criteria would be applied. Committee members were required to declare conflicts of interest where appropriate in reviewing individual applications. One of the eligibility criteria was that the applicant was unable or ineligible to access other forms of relief. The committee determined that the following forms of relief identified by the applicants were ineligible for this program:

Canada Emergency Business Account (CEBA)

Canada Emergency Wage Subsidy Program (CEWS)

Commercial Landlord Relief Assistance Program

Business Development Bank of Canada

Community Futures Development Corporation of Chatham-Kent

Emergency Community Support Fund

Some applicants indicated that they had received the Canada Emergency Response Benefit (CERB). This was a benefit targeted to individual incomes rather than businesses and therefore the committee determined that applicants who received CERB benefits would be eligible for this program.

Another eligibility criteria that several applicants did not meet was the requirement that the applicant pay commercial taxes or lease from a landlord who paid commercial taxes. When the committee developed the criteria, the intention was to target small businesses who owned or rented commercial property within Chatham-Kent. When the eligibility criteria was changed at the June 29 Council meeting to include not for profits and registered charities, the impact of this criteria may have been overlooked. As a result, 10 of the 19 applications received from not for profits and charities did not qualify on this basis.

A full list of the eligibility criteria that the unsuccessful applicants did not meet is summarized in the table below:

Small Business Recovery Grants 3

Criteria Applications Ineligible

Other forms of relief or supports 49

Business viable as of March 17, 2020 2

Own or rent a property in the commercial tax class 33

Incomplete or withdrew application 11

Willing to have business name published 2

Located in Chatham-Kent 2

The Small Business Recovery Grant Committee recommends that the applicants identified in Appendix A be approved to receive the Small Business Recovery Grant. Based on 70 approved applications, each grant recipient would receive $2,857.

Areas of Strategic Focus and Critical Success Factors

The recommendation in this report supports the following areas of strategic focus: Economic Prosperity:

Chatham-Kent is an innovative and thriving community with a diversified economy

A Healthy and Safe Community: Chatham-Kent is a healthy and safe community with sustainable population growth

People and Culture: Chatham-Kent is recognized as a culturally vibrant, dynamic, and creative community

Environmental Sustainability: Chatham-Kent is a community that is environmentally sustainable and promotes stewardship of our natural resources

The recommendation in this report supports the following critical success factors: Financial Sustainability:

The Corporation of the Municipality of Chatham-Kent is financially sustainable

Open, Transparent and Effective Governance: The Corporation of the Municipality of Chatham-Kent is open, transparent and effectively governed with efficient and bold, visionary leadership

Has the potential to support all areas of strategic focus & critical success factors

Small Business Recovery Grants 4

Neutral issues (does not support negatively or positively) Consultation

The Small Business Recovery Grant Committee has contributed to this report. The members are:

• Jamie Rainbird (Manager, Economic Development Services) • Matt Torrance (Director, Financial Services) • Audrey Ansell (Manager, Community Attraction and Promotion) • Donna Pollock (Exec Dir, Community Futures Development Corporation of Chatham-Kent) • Chris Pegg (Asst Exec Dir, CK Community Foundation) Financial Implications

The Small Business Recovery Grant program is being funded from a reallocation of $200,000 from the Together CK: CK Plan 2035 Community Projects budget.

Prepared by: Reviewed by:

____________________________ __________________________ Matt Torrance, MBA, CPA, CGA Gord Quinton, MBA, CPA, CGA Director, Financial Services Chief Financial Officer, Treasurer Consulted and confirmed the content of the consultation section of the report by:

____________________________ __________________________ Jamie Rainbird Audrey Ansell Manager, Economic Development Services Manager, Community Attraction & Promotion

____________________________ __________________________ Donna Pollock, Executive Director Chris Pegg, Asst Executive Director Community Futures Development Corp. CK Community Foundation

Attachments: Appendix A – List of recommended applicants Appendix B – Grant Program Application / Criteria Appendix C – Breakdown of applications P:\RTC\F&PS\Finance\2020\RTC022 – Small Business Recovery Grants

APPENDIX A

Grant Recipient Community Business Type

A Perfect Setting Chatham Small business (for-profit)

Absolute Sound Chatham Small business (for-profit)

Acceptional Riders Therapeutic Riding program Chatham Registered charity

Alexandria's Dance Studio Chatham Small business (for-profit)

Angel Bilagot RDT RP Chatham Small business (for-profit)

Another 1s Treasures Chatham Small business (for-profit)

Armstrong Submission Chatham Small business (for-profit)

Art and Heirloom Shoppe Chatham Small business (for-profit)

ATAP PROPERTIES INC Chatham Small business (for-profit)

Baja Cafe 1684656 Ontario Inc. Chatham Small business (for-profit)

Ballistic Fitness Wallaceburg Small business (for-profit)

Bella Chocolatier Chatham Small business (for-profit)

BLB Honey & Beekeeping Supplies and The Crappie Store Dresden Small business (for-profit)

Charisma Hair & Beauty Chatham Small business (for-profit)

Chatham Driving School Inc o/a DriveWise Chatham Small business (for-profit)

Chatham Music Academy Chatham Small business (for-profit)

EFV REIKI Tilbury Small business (for-profit)

Elite Windows and Doors Chatham Small business (for-profit)

Fantastic Greetings Inc Chatham Small business (for-profit)

Fiberto Works Corp Wallaceburg Small business (for-profit)

Fiery Fitness Tilbury Small business (for-profit)

Flap Jacks Chatham, Tilbury Small business (for-profit)

Flashpoint Entertainment Centre Incorporated Chatham Small business (for-profit)

Fortresss Tavern Chatham Small business (for-profit)

Fuzion Sports and Rec Ltd. Chatham Small business (for-profit)

Great Lakes Gymnastics Center Inc. Chatham Small business (for-profit)

Greenwood Cemetery Corporation Ridgetown Registered charity

Homebaked Kitchen Company Chatham Small business (for-profit)

J. Quaglia Law Office a Professional Corporation Chatham Small business (for-profit)

JazzBah Chatham Small business (for-profit)

JJ SPORTS & COLLECTIBLES Blenheim Small business (for-profit)

JM Fry Furniture Design Chatham Small business (for-profit)

Kent Athletic Youth Organization Chatham Not-for-profit

Kids Connection Daycare Chatham Small business (for-profit)

Legacy Composites Inc Wallaceburg Small business (for-profit)

Lentina Holdings Inc Chatham Small business (for-profit)

Madness Ink Chatham Small business (for-profit)

Mandalena Investments Inc. Chatham Small business (for-profit)

McKellars Flowers And Gifts Dresden Small business (for-profit)

Melt Massage Therapy Blenheim Small business (for-profit)

Ml Nail Salon Wheatley Small business (for-profit)

More than TZ Blenheim Small business (for-profit)

Mrs. D’s Canned Goods Kent Bridge Small business (for-profit)

MUDDY RIVER WHOLESALE Chatham Small business (for-profit)

New To You Ridgetown Not-for-profit

O'Neill Malting Company Chatham Small business (for-profit)

Ormond Chiropractic Professional Corporation Chatham Small business (for-profit)

Petley Laundry & Vending Blenheim Small business (for-profit)

APPENDIX A

Grant Recipient Community Business Type

Pink Polish Chatham Small business (for-profit)

Power Fitness Gym Wallaceburg Small business (for-profit)

Pure Dance Academy Chatham Small business (for-profit)

Rachel's Room Chatham Small business (for-profit)

Rockets Sports Cards Chatham Small business (for-profit)

Sod Buster Brewing Company Dresden Small business (for-profit)

South Kent Barbell Ridgetown Small business (for-profit)

Studio Grand Hair Salon Chatham Small business (for-profit)

Styling Salon Dresden Small business (for-profit)

Sugar That Chatham Small business (for-profit)

Tea Connection Chatham Small business (for-profit)

Tease Hair Salon Chatham Small business (for-profit)

The Digital Bean Chatham Small business (for-profit)

The Family Treasure Chest Chatham Small business (for-profit)

The Underground Fit Club Blenheim Small business (for-profit)

TJ Stables Chatham Small business (for-profit)

Treasures on Talbot Blenheim Small business (for-profit)

U-Name-It Ridgetown Small business (for-profit)

URStrong Krav Maga Studio Tilbury Small business (for-profit)

Walt Spence Enterprise Ridgetown Small business (for-profit)

Walts Garage Chatham Small business (for-profit)

Wendi Weedon RMT Wallaceburg Small business (for-profit)

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APPENDIX B

Chatham-Kent Small Business Recovery Grant Program Application

The Municipality of Chatham-Kent has established the Small Business Grant Recovery Program to

provide a grant of up to $5,000 to immediately assist small businesses who have been adversely affected

in their revenue streams by the COVID-19 pandemic.

Chatham-Kent Municipal Council and Administration recognizes the intense and severe financial

hardship that has crippled small businesses due to the need for Public Health restrictions to slow the

spread of COVID-19.

This Recovery Grant is intended to assist small business owners in their immediate needs to prepare

their small business, store or restaurant in order to protect employees and staff members as they

reopen for business.

The grant fund pool is $200,000 with available grants for businesses of up to $5,000. Depending on the

demand for this grant, amounts may be lower but equal for all successful applicants.

Eligibility:

Businesses must be located in Chatham-Kent;

Business annual sales must be less than $5 million;

Business has been adversely affected due to COVID-19 pandemic and were not experiencing

financial hardship prior to March 17th, 2020;

Applicants have been unable to access other forms of relief or supports, or were ineligible, or

the relief was insufficient;

Business has not previously claimed bankruptcy or if so, when and proof of discharge can be

provided;

Business is not party to any outstanding claims or lawsuits;

Business must pay commercial taxes or lease a property where the landlord pays commercial

property taxes;

Is a sole proprietorship, partnership or a corporation where the applicant is a majority;

shareholder (if incorporated, application and grant funding is in personal name);

If applicant owns multiple businesses, only one of the businesses may apply and be eligible for

the grant;

Locally owned franchises are eligible should they meet all other criteria;

Maintains a separate business bank account separate from personal finances, follows

government rules and regulations for operating a business.

Businesses not eligible:

Corporate franchises, commissioned sales and distributorships;

Not for profits or other registered charities;

Multi-level marketing ventures;

Previous recipients of other government relief or supports;

Single events such as musical ventures, bands, DJs or dance/party event organizations.

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APPENDIX B

Intake Period

Applications will be accepted beginning Thursday, July 2nd, 2020 until Friday, July 10th, 2020

Requirements of Program:

Business owners must provide proof that the business was established prior to March 17th, 2020

(prior to Provincial Emergency Order);

Applicant must provide number of full-time and part-time employees;

Applicant must be willing to have their business name published as a successful applicant;

Successful applicants must be willing to provide a testimonial on the effectiveness of the grant

on their business;

Business owner must be a Canadian citizen, permanent resident living in Ontario, or Protected

Person as defined in Section 95 of IRPA;

Business must provide the Municipality with proof that the business taxes are up to date as of

March 1st, 2020;

Applicants must provide purpose of grant funds: how will it be used, what expenses will these

monies be used towards;

Successful applicants must sign a declaration that all information provided in the application is

true and accurate;

An audit may be performed by the Municipality of Chatham-Kent or any of its agents to

ascertain the veracity of this attestation and the eligibility of the applicant under the program;

Applicant may be required to provide documentation to support responses on the application

Providing false or misleading information will disqualify the applicant from this and any future

related grant programs;

Applications will be reviewed by a grant review committee. Economic Development Services will

notify successful applicants.

Application Process

Contact Name:

Business Name:

Business Address: (Street, City/Town, Postal Code)

Phone Number:

Email Address:

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APPENDIX B

Description of Business (services/products provided): _____________________________________

_________________________________________________________________________________

___________________________________________________________________________________

__________________________________________________________________________________

How has COVID-19 impacted your business? What has been your loss of revenue?

__________________________________________________________________________________

__________________________________________________________________________________

__________________________________________________________________________________

__________________________________________________________________________________

Was the business financially viable prior to March 17th, 2020? Yes/No _________________________

Has the business accessed any other government or financial support: If so, how much and from who?

____________________________________________________________________________________

____________________________________________________________________________________

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APPENDIX B

Did the business apply to any available government supports and were considered ineligible or was

the relief insufficient?

____________________________________________________________________________________

____________________________________________________________________________________

Has the business ever declared bankruptcy? Yes/No _________________________________________

If so, when and can a proof of discharge be provided? ________________________________________

Annual Sales: $ ____________________________

Is the business currently party to any claims or lawsuits? Yes/No ______________________________

If so, to who?_________________________________________________________________________

If successful, is the applicant willing to have their business name published and provide a testimonial

of the effectiveness of the grant?

Yes/No_______________________________________________________________________________

Objectives of Grant Funding:

What are your objectives for this grant funding and how will you use this funding to remain financially

viable? (i.e. purchase PPE equipment, assist with business expenses, improvement of digital footprint,

enhancement of health and safety procedures)

____________________________________________________________________________________

____________________________________________________________________________________

____________________________________________________________________________________

____________________________________________________________________________________

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APPENDIX B

Budget:

Amount of Grant Funding Requested (maximum of $5,000): $_________________________________

Please detail your budget breakdown and expenditures.

Budget Details Project Total

Total

Number of full-time staff: ______________________Number of part-time staff: __________________

Accompanying this application, please provide:

Proof of establishment of business prior to March 17th, 2020 (Provincial Emergency Order)

Proof of payment of commercial taxes or rent

Proof that all business taxes are up to date as of March 1st, 2020

Copy of CRA Notice of Assessment for most recent year-end

Copy of T2125 for personal tax returns or Schedule 125 for corporate tax returns

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APPENDIX B

Dated: ______________________________________________________________________________

Applicant Name (print): ________________________________________________________________

Applicant Signature: ___________________________________________________________________

PRIVACY POLICY:

The Municipality of Chatham-Kent is committed to protecting your Personal Information, which is

regulated by the Municipal Freedom of Information and Protection of Privacy Act. The Municipality of

Chatham-Kent does not sell Personal Information and only releases information pursuant to MFIPPA or

as otherwise required by law. If you have any questions or concerns regarding the Municipality’s privacy

policy, please direct contact Legislative Services at 519-360-1998.

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APPENDIX B

ACKNOWLEDGEMENTS:

I hereby certify the statements and information in this application form are true and correct to the best

of my knowledge and belief, and I authorize the Municipality of Chatham-Kent to investigate all

statements or other information contained in this application and any attachments submitted with it,

unless I have stated in writing to the contrary. I understand and agree that any misrepresentation,

falsification or material omission of information on this application may result in my failure to be

accepted to any future funding opportunities.

All consultations are kept strictly confidential.

I have read the Privacy Policy and Disclaimer. I hereby consent to the use of the Personal Information by

the Municipality of Chatham-Kent in accordance with such Privacy Policy and I acknowledge and agree

to the terms set out in the Disclaimer.

SIGNATURE:

_____________________________________________________________________________________

Applicant

_____________________________________________________________________________________

Date

Small Business Recovery Grant Applications - ALLBusiness Sector of Applicants

Sector Number of Applicants

Accommodations 3

Agriculture Related 2

Art Gallery 1

Auto Repair 1

Bakery/Café/Restaurant/Bar/Catering 23

Banquet Hall 1

Children Related 10

Dance Studios 2

Daycare 1

Educational Services 1

Entertainment 5

Fitness Conditioning/Gyms/Martial Arts 15

Manufacturing 3

Museums 1

Personal Services-i.e. aesthetics, salons, dental, healthcare

41

Professional Services 10

Recreational Clubs 4

Repair Services and Parts 6

Retail 33

Sports Related 4

Technology 2

APPENDIX C

Community of Applicants

Community Number of Applicants

Blenheim 14

Bothwell 1

Cedar Springs 1

Chatham 102

Dresden 6

Erieau 2

Kent Bridge 1

Merlin 1

Mitchell’s Bay 1

Muirkirk 1

Pain Court 3

Ridgetown 7

Thamesville 1

Tilbury 11

Wallaceburg 13

Wheatley 2

Outside of Chatham-Kent 2

Type of Business

Type of Business Number of Applicants

Small Business (For Profit) 150

Not-For-Profit 15

Registered Charity 4