Augusta Housing and Community Development CITY OF AUGUSTA | 510 FENWICK STREET AUGUSTA, GA 30901

SEEDS for LIFE Grant PROGRAM GUIDELINES - 2020

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1.0 INTRODUCTION

AUGUSTA, GEORGIA SEEDS FOR LIFE SMALL BUSINESS GRANT PROGRAM-

The City of Augusta, through its Housing and Community Development (HCD) Department, has

established a micro grant program for locally owned and operated small businesses, known as

SEEDS for Life. The program is designed to stimulate economic growth and create economic

opportunity that will improve the living conditions of residents in Augusta, Georgia. The

program provides an operating capital grant of up to $10,000 to eligible businesses to grow or

expand. This program is funded through entitlement allocation dollars from the United States

Department of Housing and Urban Development (HUD) under the Community Development

Block Grant (CDBG) Program. HCD’s Program is designed to operate in compliance with the

regulations as described at 24 CFR 570.201(o).

The City of Augusta Housing & Community Development Department is presently seeking

applications from locally owned and operated businesses for the SEEDS for Life program

through a competitive application process. The SEEDS for Life program application will open on

December 3, 2020 at https://portal.neighborlysoftware.com/augusta/Participant on the City of

Augusta website, under the Housing and Community Development Department’s tab. Interested

firms may only apply for this funding through this application portal. No hard copy applications

will be accepted.

Interested applicants are encouraged to attend the virtual Application Workshop to be held on

December 2, 2020 via Zoom at https://augustaga-

gov.zoom.us/j/97112753963?pwd=K2NCRS9kekhTbGU0b3NCYVd2OGtJdz09 and HCD’s

Facebook Live feed – Grow Augusta. Please contact HCD at 706.821.1797 or email

devans2@augustaga.gov if you have questions about this workshop.

Applications will be accepted from December 7, 2020 until December 23, 2020 at 5:00 pm. At

that time, a threshold review will be conducted and participants will be referred to the SEEDS

for Life Grant Selection Committee for Scoring and Funding Recommendations.

CITY’S RIGHTS RESERVED: The City of Augusta reserves the right to reject any

applications as it may best serve the interest of the City.

The City hereby notifies all interested parties that it will affirmatively ensure that in any contract

entered into pursuant to this program, Women and Minority Business Enterprise (WMBE) and

disadvantaged business enterprises (DBE) will be afforded full opportunity to submit in response

to this invitation and will not be discriminated against on the grounds of race, color, sex, or

national origin in consideration for an award. Further, the City hereby notifies that all businesses

and employers working on HUD-funded projects must, to the greatest extent feasible, make a

good faith effort to train and employ low-income individuals living in the local area (Section 3

residents) and also to contract with businesses owned by or that employ Section 3 residents (per

24CFR 135.5).

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2.0 PROGRAM REQUIREMENTS

2.1 Eligibility and Terms

Eligible businesses may be awarded up to $10,000 in grant funds through the SEEDS for LIFE

Small Business Grant Program application process.

i. Eligibility

• Licensed business located in Augusta, Georgia in operation since December 3,

2019

• Applicant is 51% + majority owner of business

• Owner/applicant is a qualified Low/Mod Income household OR business commits

to hiring at least one FTE job held by a Low/Mod Income resident of Augusta,

Georgia.

• Owner is 18 years or older

• Owner has or will have, if awarded, a valid Social Security Number, Federal Tax

EIN & DUNS & Bradstreet Number and Business Bank Account and will complete

registration with Section 3 Business Compliance and SAMS.gov registration. These

requirements are only necessary for Applicants that are recommended for award by

the Grant Selection Committee.

• Owner/Applicant is not currently in bankruptcy

• Owner/Applicant is current with property taxes and municipal fees, or has a

payment plan in place with the municipality as of the date of award.

• Not have a conflict of interest with Augusta, Georgia, to include elected officials,

City of Augusta staff or other parties with influence over the administration of this

program.

SEEDS for LIFE Small Business Grant

ii. Terms

• Maximum award: Up to $10,000

• Job creation report provided to HCD within 6 months of award notification. A 1-

year follow up of the job creation verification will be required to ensure that the

position is still occupied by a low-to-moderate income employee.

2.2 PROGRAM SERVICE AREA & FUNDING SOURCE

Financing under this Program is available to eligible businesses registered and located within

Augusta, Georgia’s Entitlement jurisdiction (Note: this includes all Richmond County

businesses, including those located in Blythe, GA and Hephzibah, GA). The location of the

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business will be considered the place of business administration and registration address as

shown on the applicants’ Augusta, Georgia business license.

The SEEDS for LIFE Small Business Grant Program is funded through Community

Development Block Grant (CDBG) funds provided by the Federal Department of Housing and

Urban Development (HUD) to Augusta, Georgia. As such, these funds have Federal

requirements, as described below.

2.3 ELIGIBLE APPLICANTS

For-profit and non-profit businesses with up to 10 employees at the time of

application submission may apply. Business must have been in operation a minimum

of 12 months at the time of application. The business must have had a valid Augusta,

Georgia Business License prior to December 3, 2019 to be meet this requirement.

Businesses cannot be recipients of Federal Funding from Augusta, Georgia since

January 1, 2019. This does not include any Covid-19 Economic Relief funding

issued through the City of Augusta and/or Augusta Housing and Community

Development.

Information on the City of Augusta’s Covid-19 Economic Relief can be found on the

City of Augusta website https://www.augustaga.gov/covid19

Non-profit businesses cannot be recipients of other Federal funding issued through

the City of Augusta and/or Augusta Housing and Community Development.

Eligible applicants must have a registered business address in the Augusta, Georgia

and a Georgia Secretary of State Registration and Augusta, Georgia issued Business

License.

2.4 INELIGIBLE APPLICANTS

An ineligible existing business applicant is one that has a physical business location

or registration outside of Augusta, Georgia.

Businesses that cannot create employment opportunity for low and moderate-income

residents of Augusta, Georgia are ineligible.

Other ineligible businesses include payday grant businesses, liquor and tobacco

stores, pawnshops, firearm or other weapons dealers, adult entertainment, passive real

estate investments, or home-based businesses operating without appropriate zoning

and/or permits.

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2.6 TECHNICAL ASSISTANCE TRAINING REQUIREMENT FOR AWARDED

BUSINESSES (only applicable for businesses recommended for funding by the SEEDS for LIFE Grant Selection Committee)

Businesses recommended for funding must complete at least one Technical Assistance Training

offered by the U.S. Small Business Administration (SBA) and provide HCD with a Certificate of

Completion prior to payment. From the links to U.S. SBA courses provided below, awarded

businesses must choose at least one course from the list and complete the on-line module prior to

receipt of payment. The module will provide businesses the ability to print a customized

Certificate of completion once you complete the module.

Social Media Marketing: https://www.sba.gov/course/social-media-marketing/

Marketing 101: A Guide to Winning

Customers: https://www.sba.gov/course/marketing-101-guide-winning-customers/

Introduction to Pricing: https://www.sba.gov/course/introduction-pricing/

Understanding Your Customer: https://www.sba.gov/course/understanding-your-

customer/

Financing Options for Small Businesses: https://www.sba.gov/course/financing-

options-small-businesses/

2.6 ELIGIBLE USE OF FUNDS

Housing and Community Development will review the proposed use of funds submitted in the

application. Grants are preferred to be used for certain eligible costs, including, but not limited to

those related to basic operating capital for renting or leasing space, insurance and/or utilities, and

staff salaries. Payment of staff salaries may be used for the FTE job created to meet the

requirements of receiving funding under this program.

HCD does not recommend, but will consider requests for inventory, supplies, furniture, software

and construction costs less than $2000.

The following uses of funds require grant recipients to comply with City of Augusta

Procurement standards for purchasing, Environmental Review Record standards as set forth by

HUD for construction activities and documented proof of purchase for funds awarded under this

grant.

Purchasing inventory, supplies, accounting and inventory software, furniture, fixtures,

and equipment

Rehabilitation of owner-occupied or leased space (maximum $2000 construction

costs)

Professional services including engineering, architectural, local permits or fees,

business consulting services as approved by HCD staff

Equipment purchase (with or without installation costs)

Refinancing of existing business debt in conjunction with financing other eligible

costs (<25% of request, prior HCD grants are not eligible for refinancing)

Marketing materials and advertising including website development and servicing

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2.7 INELIGIBLE USE OF FUNDS

In addition to CDBG-ineligible costs outlined in 24 CFR 570, funds under this Program may not

be used to:

Pay off non-business debt, such as personal credit cards for purchases not associated

with the business.

Purchase personal expenses such as buying a new family car or making repairs to a

participant’s home.

Direct financing to political activities or paying off taxes and fines.

Purchase personal items, or support other businesses in which the borrower may have

an interest.

Construction fees over $2,000

Purchase alcohol, food products and other related items.

2.8 APPLICANT CAPACITY TO MEET JOB CREATION REQUIREMENTS

HCD must confirm that the business and the applicant(s) possess the capacity to execute the Job

Creation requirement to be successful with the use CDBG funds. As such, grant applicants for

the SEEDS for LIFE Grant Program are required to demonstrate Job Creation capacity and

ability to successfully maintain and operate a business through their applications and supporting

materials.

2.9 JOB CREATION

For the SEEDS for LIFE Grant Program, applicants MUST commit to creating jobs for low to

moderate income residents of Augusta, Georgia. Unless a business applicant’s owner is a

member of a low-/moderate-income household and the business qualifies as a HUD-defined

microenterprise, then creation of at least one job held by a low-/moderate-income resident of

Augusta, Georgia is required to access funds in this program. Job retention is defined as total

full-time equivalent positions created at 35 hours+ per week, or any combination of part-time

positions combining for 40 hours per week, including owners. At least one of the FTE positions

created must be held by employees who are a member of a low-/moderate-income household.

Low and Moderate Income Status

The US Department of Housing and Urban Development definition of low or moderate income

constitutes individuals who live in households with Gross Annual Household Income that is 80%

of the Area Median Income (AMI) or below. The following chart represents the Gross

Household Income thresholds that constitute low and moderate-income status:

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* Employees are qualified based on their Household Size. For the Employee that your firm

wishes to count towards the Job Creation requirement, you can determine if they are eligible by

following the top line of the chart (Persons in Family) to the correct Household size and

determine if the Employee’s Gross Household Income is at or below the bottom line dollar value

(Low 80% Income Limits). For example, an Employee in a 2 person Household would have to

have a Gross Annual Income of $42,200 or less to qualify as a Low or Moderate Income

Employee.

3.0 PROGRAM DETAILS

3.1 GENERAL CREDIT REQUIREMENTS

Outstanding Taxes, Fines and Fees

Outstanding debts from municipal delinquent property taxes do not disqualify applicants, IF

proof of formal payment arrangements is provided at the time of application.

3.2 OTHER REQUIREMENTS of HUD SOURCED GRANTS

Grant Recipients must:

Not be listed on the Federal Debarred list (SAM.gov Search)

Provide a valid DUNS number (only applicable for businesses recommended for funding by the

SEEDS for LIFE Grant Selection Committee) Allow HCD to complete an Environmental Review (NEPA) before providing funds

for any construction related activities.

3.3 PROGRAM ADMINISTRATION

HCD will:

Originate SEEDS for LIFE Grant funds

Market the SEEDS for LIFE Grant program

Accept and process applications

Complete an Environmental Review

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Complete Income Eligibility qualification and document number of employees for

awarded firms.

Review and underwrite application requests

Ensure timely disbursement of funds

Maintain agreement documents and fiscal records

Ensure compliance with program guidelines as they relate to the funding source

3.4 GRANT TERMS AND CONDITIONS

Financial assistance from the program is designed to assist businesses in growing and

expanding their business, in addition to creating jobs for low to moderate-income

residents of Augusta, Georgia.

Grant – the funding is in the form of a grant. Business must be able to provide

evidence (in the form of payroll records) of job creation within 6 months of award;

otherwise, the funds must be repaid to the City of Augusta.

Allow HCD to collect certain income and demographic data from applicants and their

employees.

Allow the HCD to collect 3rd party documentation, such as financial information, that

demonstrates the financial reporting submitted by the applicant.

Amount – up to $10,000 of grant funds. The grant funds are only available with the

expectation for the jobs that will be created as a result of these funds.

4.0 PROGRAM OPERATIONS AND GRANT PROCESSING

4.1 PROGRAM MARKETING AND OUTREACH

Program marketing will be conducted by HCD and will be made openly available to all

interested businesses or residents of Augusta, Georgia that express desire for such materials to

HCD. Examples of marketing include media coverage with ads in local papers and distribution

of flyers or marketing brochures to local community partners, and business networking

organizations. Social media outlets operated by HCD will also be utilized (FaceBook: Grow

Augusta; Instagram @growaugusta; Twitter: @ga_hcd). The City of Augusta website shall also

serve as a primary medium for sharing updates and other information related to this grant

opportunity at the following web address: https://www.augustaga.gov/2838/SEEDS-for-Life-

Small-Business-Grants

4.2 EQUAL OPPORTUNITY COMPLIANCE

The SEEDS for LIFE Grant Program will be implemented in ways consistent with the City of

Augusta’s commitment to State and Federal equal opportunity laws. No person or business shall

be excluded from participation in, denied the benefit of, or be subjected to discrimination under

any program or activity funded in whole or in part with CDBG program funds on the basis of his

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or her religion, religious affiliation, age, race, color, ancestry, national origin, sex, marital status,

familial status (number or ages of children), physical or mental disability, sexual orientation, or

other arbitrary cause.

4.3 APPLICANT CONFIDENTIALITY

All personal and business financial information will be kept confidential to the extent permitted

by law. SEEDS for LIFE Small Business Grant Program participant files with personal and

business confidential information will be kept in locked, secured storage units.

4.4 DISPUTE RESOLUTION/APPEALS PROCEDURE

Applicants whose applications are not selected or not deemed eligible have the right to appeal

the decision of the Grant Selection Committee, limited to procedural errors in the selection

process. In the event that no such procedural errors are found to have occurred, the decision of

the Grant Selection Committee shall be final. An aggrieved applicant may, within seven (7)

business days after the selection of prospective eligible businesses, appeal in writing to the

Director Housing and Community Development, or their designee. The appeal must state all

facts and arguments upon which the appeal is based.

The Director, or the appointed Designee, will review the content of the HCD’s SEEDS for LIFE

Grant Program Guidelines, the applicant’s application, and the facts that form the basis for the

appeal. The Director, or the appointed Designee, will render a written decision within thirty

(30) business days of the receipt of the appeal.

4.5 EXCEPTIONS / SPECIAL CIRCUMSTANCES

The City of Augusta reserves the right, at its sole discretion, to deviate from HCD-imposed

policies and procedures in extenuating circumstances. A request for exception to program

guidelines shall be submitted to the HCD Director in writing by applicant. Exceptions are

defined as any action that would depart from policy and procedures stated in these guidelines.

4.6 POST AWARD PROCESS

Upon successful completion of application process, HCD staff will prepare for the Post Award

process by preparing the Post Award documents, including but not limited to: Written

Agreement, Vendor Documentation, Technical Assistance Certificates and Financial reporting

documentation. Applicants recommended for funding will receive a Post Award Guide document

detailing all actions and forms that must be completed prior to receiving funding. After the

Agreement signing, the applicant submits invoices to request reimbursement funds from the

HCD. HCD staff will review invoice requests and initiate the reimbursement payment process.

4.7 APPLICATION REVIEW

Applications to the SEEDS for LIFE Grant Program are presented by business owners/agents to

HCD through the Neighborly portal (https://portal.neighborlysoftware.com/Augusta/Participant).

Staff will review the applications for eligibility. Eligible applications will be forwarded to the

SEEDS for LIFE Grant Selection Committee for scoring and funding recommendation.

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Top scoring applications will be recommended for approval, up to $10,000, until all funding is

exhausted. HCD staff will provide periodic updates with business names and recommended

funding amounts to the Augusta, Georgia Mayor and Commission, as requested.

Contracts for approved grant applications will be drafted by HCD staff and circulated for

signatures to:

• Applicant/Awarded Businesses

• Housing and Community Development Director

• City of Augusta Administrator

• City of Augusta Mayor

• City of Augusta Clerk of Commission

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Appendix B – Post Award Registrations and

Requirements

Business Requirements:

1. Applicant must not have any local, State or Federal tax liens or back taxes that are owed

on personal or leased property associated with this business

2. Applicants must agree that if awarded a $10,000 SEEDS for LIFE Small Business

Grant, they will hire a minimum of one fulltime equivalent (FTE) employee who is

low to moderate income and resides in Richmond County. This requirement must

be met within 6 months of award and retain the position, filled by a low to moderate

income resident of Richmond County, for a minimum of one year after receiving the

grant.

3. Written Agreement – Awarded firms must enter into Written Agreement with the City of

Augusta prior to receiving funds.

4. Maintain an active Augusta, Georgia business license for one year. Business must

remain operational and appropriately licensed in Augusta, Georgia for the one-year term

of the Agreement.

5. Participating testimonials and community outreach – HCD would like to promote the

impact of this program on the small business community, and therefore would ask that all

awarded businesses agree to participate in testimonials about their experience with the

program to support future rounds of funding opportunities for additional small business

growth in Augusta, Georgia.

6. Payment of interest on obligations: payment of issuance, underwriting, servicing, trust

administration and other costs associated with private sector financing of debt

obligations: or payment of debt services are all ineligible uses of grant funds.

7. These NAICS code type businesses are not eligible to apply for this grant are: liquor

stores, adult entertainment venues, payday/loan title businesses, pawnshops, businesses

based solely on financial investment, insurance companies and real estate speculators.

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Post Award Registration Requirements (only applicable for businesses recommended for funding by the

SEEDS for LIFE Grant Selection Committee):

The following registration requirements are for businesses that are selected to receive a SEEDS

for LIFE Small Business Grant.

1. Applicant must have an established business checking account. Payments cannot be

issued to individuals and must be made out to the business that is awarded funding under

this program.

2. Businesses receiving funding must have an active DUNS number. If you do not have a

DUNS number, you may use the following link to register and receive a DUNS number

for your business:

Dun & Bradstreet- DUNS – https://www.dnb.com/duns-number/get-a-duns.html

3. Businesses receiving funding must have an active EIN number. If you do not have a

EIN number, you may use the following link to register and receive a EIN number for

your business:

Federal EIN – https://www.irs.gov/businesses/small-businesses-self-employed/apply-

for-an-employeridentification-number-ein-online

4. Section 3

Participation in HUD-funded Economic Development requires compliance with Section 3

requirements set forth by HUD to ensure economic opportunities are available to low-and

very low-income residents of Augusta, Georgia.

About Section 3

The Section 3 program requires that recipients of certain HUD financial assistance, to the

greatest extent possible, provide training, employment, contracting and other economic

opportunities to low- and very low-income persons, especially recipients of government

assistance for housing, and to businesses that provide economic opportunities to low- and

very low-income persons.

The Section 3 Business Registry is a listing of firms that have self-certified that they meet

one of the regulatory definitions of a Section 3 business and are included in a searchable

online database that can be used by agencies that receive HUD funds, developers,

contractors, and others to facilitate the award of certain HUD-funded contracts. The

database can also be used by Section 3 residents to identify businesses that may have

HUD-funded employment opportunities.

HUD Section 3 Registration

Info: https://portalapps.hud.gov/Sec3BusReg/BRegistry/What

Register here: https://portalapps.hud.gov/Sec3BusReg/BRegistry/RegisterBusiness