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Stimulus Funding for Small Businesses

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Stimulus Funding for Small Businesses Powered By Docstoc
					  CDBG Stimulus
    Competition
The Georgia Department of
       Community Affairs
Background on Supplemental
CDBG Stimulus Funds
   Supplemental Appropriation through the ‗‗American Recovery
    and Reinvestment Act of 2009‘‘ (ARRA);

   ARRA Uses Existing FFY 08 CDBG Delivery Systems
     Entitlement Programs
           $11,108,569
       Non-Entitlement State Program (DCA)
           $10,866,994


   Adapt Existing Systems Through a Substantial Amendment of
    Approved (by HUD) FFY 08 Plans
Background on Supplemental
CDBG Stimulus Funds
   ARRA Objective of Jobs and Economic Growth Through CDBG
   Conformance with CDBG Statute, Regulations and Guidance
    supplemented by specific federal ARRA requirements
   Funds are ―Available Until‖ 9/30/2010
   Priority to projects that can award contracts within 120 days
   HUD guidance expected on ―expediting‖ use of funds and certain
    waivers
   ―Buy American‖ Provisions
Specific Federal ARRA
Guidance
   White House (OMB) Guidance Re ARRA
       Transparent merit-based decision-making
        Long-term public benefits should support
         demonstrated ability to deliver results

         maximum efficiency in creating or retaining jobs
               cost per job must be considered
         Investments in technological advances to improve quality of
          life and economic efficiency
       Targeting Assistance Consistent With Other Policy Goals
         Collaboration Between Agencies (SBA, Commerce, Labor,
          Education (Colleges and Universities), etc)
Update and Changes to DCA
Guidance
   All Materials Located on DCA Web Site
       www.dca.ga.gov/communities/CDBG/programs/cdbgstimulus.asp

   Stand Alone CDBG Stimulus Competition
       Due Date of June 1, 2009 (COB or Postmarked)
         Reevaluation following publication of HUD Notice


   All State CDBG Communities are Eligible
       Possible Exceptions for Slow Performers, Unresolved
        Findings and Sanctions, RLFs with liquidity

   New CDBG Stimulus Applicants‘ Manual
Special ARRA / CDBG Competitiveness
Provisions
   Most Competitive Projects will have
       Maximized job creation and retention
         Utilization of full-time equivalent calculation

       Completed acquisition of any needed real estate
       Obtained required permitting is complete
       Completed & approved architectural & engineering
         Assurance regarding ―Buy American‖ provisions

       Completed NEPA review requirements
       No site assessment liability issues (Phase I & II)
   Assessed within the rating and selection criteria
Special ARRA / CDBG
Competitiveness Provisions
   Note that local governments are encouraged
    to consider regional approaches to job
    creation and economic growth. Regional
    approaches will obtain consideration of
    combined demographics which will be more
    competitive than ―stand-alone‖ applications.
Application of CDBG National
Objectives
   (1) Benefiting low- and moderate- (L/M) income
    persons
   (2) Addressing slums or blight; or
   (3) Meeting a particularly urgent community development
    need

   For CDBG Stimulus only, the State will lower the L/M
    threshold to 51%
       Therefore ALL national objectives will be accepted but be
        required to meet the L/M 51% threshold
   For job creation projects where permanent employees
    are taken from certain state training programs, an
    assumption of L/M benefit exists
Eligible State CDBG Applicants
   All local governments which were ―non-entitlement‖
    governments for FFY 2008 and eligible for the State
    CDBG Program are eligible for the CDBG Stimulus
    competition
   Receipt of a 2008 or 2009 annual CDBG grant does
    not preclude a local government from applying for
    CDBG Stimulus funding
   Public and private ―Sub-recipients‖ are not directly
    eligible for State CDBG; rather, they must work
    through a sponsoring local government(s)
Eligible State CDBG Activities

   ARRA directs that grantees use Stimulus
    funds to maximize job creation, economic
    benefit and for activities that can be initiated
    within 120 days. Such projects may involve
    any eligible CDBG activity; however, to the
    extent that the minimum benefit threshold to
    LMI persons is met, the Department
    recommends that the following activities be
    considered …
    Eligible State CDBG Activities
    Direct Assistance to Private Businesses
    The provision of assistance to private, for-profit entities (including
     small businesses and micro-enterprises), when the assistance is
     appropriate to:
        create or retain jobs for low- and moderate-income persons;
        prevent or eliminate slums and blight;
        meet urgent needs;
        create or retains businesses owned by community residents;
         and
        assist businesses that provide goods or services needed by,
         and affordable to, low- and moderate-income residents
Eligible State CDBG Activities
Direct Assistance to Private Businesses
                        Recipient – City Government
                        Sub-Recipient – Small
                         Business
                        CDBG Loan - $210,000

                        Project – Rehabilitation

                        Private Investment -
                         $310,000
                        Seven (7) Permanent Jobs
                         Made “Available To” LMI
                        Private/Public Investment
                         eliminated blight, created
                         small business owned by
                         community resident that
                         provides needed services to a
                         LMI community
Eligible State CDBG Activities
Direct Assistance to Private Businesses
   The provision of assistance to private, for-profit
    entities (including small businesses and micro-
    enterprises), could also be structured through an
    regional application that uses a intermediary regional
    organization:
        the intermediary regional non-profit entity could establish an
        agreement with the applicant local governments to become a
        CDBG ―sub-recipient‖ to re-loan the assistance to eligible for-
        profit businesses, microenterprises or non-profits that
        themselves make loans to micro-enterprises
           RDC‘s, regional development authorities, nonprofits and
            similar entities with proven track records may qualify –
            call DCA to discuss…
Eligible State CDBG Activities
Public Works and Public Facilities
   The acquisition, construction, reconstruction, or installation of
    public works, facilities (except for buildings for the general conduct
    of government), and site or other improvements.
       ―public works‖ …. Publicly-owned water, sewer, gas, drainage, rail,
        fiber, etc that will be extended to an industrial or commercial
        business, corporation or small businesses to promote job creation
           Creative use of a public lease (i.e. development authority) can qualify
            facilities as ―public‖
       ―publicly-owned facilities‖ … job training or workforce development
        centers, health centers, business incubators
           Again, creative use of public leases combined with collaborative
            partnerships with colleges, hospitals, research institutes, etc.
Eligible State CDBG Activities
Public Works and Public Facilities
   The acquisition, construction, reconstruction, or installation of
    public works, facilities (except for buildings for the general conduct
    of government), and site or other improvements.
       This activity can also be used to assist traditional CDBG
        neighborhood revitalization projects (competitive?)
Ineligible State CDBG Activities

   Pursuant to ARRA, certain activities are specifically excluded from
    eligibility, including: casinos or other gambling facilities; aquariums;
    zoos; golf courses; swimming pools and similar recreation projects.
       Note that these activities have NEVER been eligible for Georgia‘s
        State CDBG Program


       Also, it is unclear from the ARRA legislation whether state or local
        administration is an eligible activity. DCA will provide information
        on administrative cost eligibility as soon as HUD provides
        guidance.
State CDBG Grant Amounts
   Maximum of $500,000 per award
       Note CDBG cost per job or beneficiary is a major
        competitive factor
   Receipt of a 2008 or 2009 annual CDBG grant
    does not preclude a local government from
    applying for CDBG Stimulus funding
   ―Sub-recipients‖ are not directly eligible for
    State CDBG; rather, they must work through a
    sponsoring local government(s)
State CDBG Other Application
Notes
   Applications may be submitted individually by one unit
    of general purpose local government, or jointly, by two
    (2) or more units of general purpose local
    government. Joint submissions must contain a copy
    of the Cooperating Agreement entered into by the
    cooperating units of government. The agreement
    should designate the unit of local government that will
    serve as the lead applicant.
       Multi-government regional applications are encouraged for
        small business development projects
Applicant Citizens Participation
   Applicants must follow the Department‘s approved
    Citizen Participation Plan available on the DCA
    website at www.dca.ga.gov/communities/CDBG/
   Applicants for and recipients of CDBG Stimulus funds
    must certify that they will follow this plan and provide
    for and encourage participation in the planning,
    implementation and assessment of their CDBG
    program
   See Applicants‘ Manual
Competitive Rating and Review
Criteria

Review Factor                   Max Points Available

Unemployment/Demographic Need        60 points
Program Feasibility                 150 points
Program Impact                      150 points
Program Strategy                    100 points
Bonus for Project Readiness          40 points

Total Available Points              500 points
Final Competitive Rank and Selection

   Final Ranking and Grant Selection:
       The points received by each applicant on the rating
        factors will be totaled and the total scores ranked
        accordingly. Grant awards will be based on this
        final ranking to the extent funds are available. In
        case of ties, the applicant with the highest
        unemployment score will be given priority.
       Transparent, merit based system. Detailed
        explanations of scores will be available to all
        Applicants
Unemployment & Demographic Score
60 Points Available


   Number of People Unemployed (20 points)


   Percent of People Unemployed (20 points)


   Per Capita Income (20 points)
Unemployment & Demographic Score
60 Points Available

   Note that for unemployment criteria each eligible
    local government will be compared in terms of the
    number and rate of people unemployed. Individual
    scores will be obtained by dividing each
    government‘s number of persons or rate by the
    greatest number of persons or rate unemployed and
    multiplying it by 20
       Note that for non-entitlement cities, unemployment
        numbers and rates will be estimated by applying the latest
        Georgia DOL unemployment data for a particular county
        and prorating based on the jurisdiction‘s population.
Unemployment & Demographic Score
60 Points Available

   All eligible local governments will be
    compared in terms of their per capita income.
       Individual scores will be obtained by dividing each
        government‘s per capita income into the lowest
        per capita income of any eligible local government
        and multiplying by 20.

       Data sources for per capita income include the
        most recent data from Claritas, Inc. for each
        jurisdiction.
Feasibility Score
150 Points Available

   The following factors will be considered wherever
    applicable:
       Ability of the applicant to have the project bid and contract
        awarded within 120 days;
       Reasonable project timetables;
       Completion of all necessary engineering, architectural, and/or
        site plans and designs;
       Completion and documentation of all necessary property
        acquisition;
       Completion of all required local, state, and federal permits
        (environmental, historic preservation, NEPA, etc. as applicable)
       Absence of, or complete resolution of, environmental remediation
        needs;
Feasibility Score
150 Points Available

    Documentation and reasonableness of costs;
    Where applicable, documentation that preliminary engineering,
     architectural or site plans have been prepared and support the
     proposed project;
    Documentation of funding commitments from other project
     funding sources;
    Demonstration of compliance with applicable local, state, and
     federal laws;
    Administrative capacity of the applicant to administer funds and
     demonstration of adequate CDBG implementation history;
    Determination by DCA that partnering organizations, businesses
     and/or sub-recipients are reputable, able to perform and credit
     worthy; and
    Documentation that all applicable financing is ready to invest.
Feasibility Score
150 Points Available
Level 1: (Poor)             0.0


Level 2: (Below Average)    37.5


Level 3: (Average)          75.0


Level 4: (Good)            112.5


Level 5: (Excellent)       150.0
Impact Score
150 Points Available

    Number of temporary construction
     jobs/beneficiaries created and/or retained (FTE);
    Number of permanent jobs/beneficiaries created
     and/or retained (FTE);
    CDBG Stimulus cost per job/beneficiary;
    Project's impact on local unemployment rates;
     and
    Project‘s impact on the benefiting populations‘
     quality of life or opportunity for economic
     advancement.
Impact Score
150 Points Available

    Calculation of Full Time Equivalent (FTE) positions for
     construction and permanent jobs
        To calculate FTE‘s one will determine the start and end
         date of the temporary job, calculate the total hours worked
         of all temporary workers, and divide by 40 to arrive at the
         FTE number
    Note that created permanent jobs must meet the Low-and
     Moderate-Income national objective
        DCA Certification & Release Form for each job
    Both construction and permanent jobs will need to be
     reporting
Impact Score
150 Points Available
Level 1: (Poor)             0.0


Level 2: (Below Average)    37.5


Level 3: (Average)          75.0


Level 4: (Good)            112.5


Level 5: (Excellent)       150.0
Strategy Score
100 Points Available

    Project‘s relationship to overall objectives of the general CDBG
     and ARRA to use funds in a manner that maximizes job creation
     and economic benefit, especially with respect to permanent job
     creation for low and moderate income person;
    Demonstration of local government‘s need for Stimulus funds due
     to financial or economic constraints resulting from the current
     state of the economy;
    Demonstration of local government‘s or sub-recipient‘s capacity
     to operate and maintain facility/infrastructure proposed to be
     funded with Stimulus funds; and
    Demonstration of capacity of proposed sub-recipients for
     administration, accountability and meeting investment
     commitments.
        Regionalism is encouraged as one method to enhance capacity
Strategy Score
100 Points Available
Level 1: (Poor)             0.0


Level 2: (Below Average)   25.0


Level 3: (Average)         50.0


Level 4: (Good)            75.0


Level 5: (Excellent)       100.0
Bonus Points for Readiness
40 Points Available



    Completion of all required designs—15 points;
    Acquisition of all applicable local, state, and
     federal permits—10 points;
    Completion of bid documents—10 points;
    Completion of NEPA environmental review— 5
     points;
Accountability and Oversight
   If funded, your project will be extensively monitored
    and audited by both state and federal agencies and
    resources
   Local governments must make it a priority to know
    and understand the details of the CDBG and ARRA
    compliance requirements within the Applicants
    Manual
   If improperly designed and implemented, the
    Department will disallow costs, apply sanctions and
    require the repayment of misspent funds
Reporting Requirements
   If funded, your project will be subject to the quarterly
    outcome and financial reporting requirements for
    State CDBG
       In addition, DCA will modify to include provisions for FTEs
        and temporary (construction) jobs
   Davis-Bacon and Labor Standards reporting
    requirements will apply and recipients will be
    responsible for obtaining and monitoring required
    payroll information
   Other reporting requirements may also be required
    by HUD and OMB as the program develops
    Contact Information
   www.dca.ga.gov/communities/CDBG/programs/
    cdbgstimulus.asp
   cdbg.stimulus.questions@dca.ga.gov
   Steed Robinson, 404-679-3168
   Joanie Perry, 404-679-3173
   Glenn Misner, 404-679-3138
   Brian Williamson, 404-679-1587

				
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