HomeMy WebLinkAbout2018-044-E Economic Dev - Always Faithful Body Care OCBI grantDocuSign Envelope ID: ED1C5AB6- 5059 -454A- 9433- F11644088A74
ORANGE COUNTY ECONOMIC DEVELOPMENT
BUSINESS INVESTMENT GRANT AGREEMENT
THIS AGREEMENT, entered into this 6th day of February, 2018, by and between Orange County
( "County "), by and through Orange County Economic Development ( "Economic Development ") and
Always Faithful Body Care ( "Grant Recipient').
WHEREAS, Economic Development is a County department that aids existing business
investment and early -stage venture growth, assists local agriculture and local food systems, and supports
entrepreneurial development; and,
WHEREAS, Grant Recipient has a project to expand their existing Orange County business; and,
WHEREAS, the Grant Recipient was selected to receive the Orange County Business Investment
Grant through the procedures duly adopted by Economic Development; and,
NOW THEREFORE, the County and the Grant Recipient, for the consideration and under the
conditions hereinafter set forth, agree as follows:
Approved Grant. Grant funds are provided for the project ( "Project') described in the Grant
Recipient's Grant Application ( "Application "), dated December 28, 2017 and incorporated by
reference, subject to this Agreement, the Business Investment Grant Program Guidelines
( "Guidelines "), attached as Exhibit A and any additional terms imposed on the Grant Recipient
( "Additional Terms ") attached as Exhibit B, in that order of priority.
2. Grant Award. Grant funds in an amount of one thousand five hundred dollars ($1,500.00) have
been awarded by the Grant Subcommittee described in Exhibit A ( "Subcommittee ") and shall be
released to the Grant Recipient for the approved Project. The grant cannot be assigned or
transferred without prior written approval.
3. Responsibilities of the Grant Recipient
A. Implementation. The Project shall be implemented in the manner described in Exhibit A.
Time is of the essence in the implementation of the Project.
B. Use of Funds. Grant recipient shall not use the grant funds for any of the prohibited purposes
described in the Guidelines. The grant shall be utilized solely for its intended use, as detailed
in the Application, and subject to the Additional Terms.
4. Indemnity. The Grant Recipient agrees to indemnify and hold harmless the County and
Economic Development and their officers and employees from any and all claims of actual
injury, damage or loss to a person, or real or personal property that results from or is in any way
connected to the use of the grant funds.
5. Termination.
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A. In the event of any of the circumstances set forth below (hereinafter referred to as "default "),
the Subcommittee may immediately terminate this Agreement:
i. Any fraudulent representation on a material matter related to securing and utilizing
grant funds under this Agreement.
ii. Failure to satisfactorily comply with any provision of this Agreement, any term of the
Grant Application, and/or any Grant Program Guideline, as determined by the
Subcommittee in its sole discretion.
iii. Failure to adhere to the terms of applicable county, state, or federal laws, regulations,
or stated public policy.
B. In the event of default by the Grant Recipient, the Subcommittee has the discretion to elect to
terminate this Agreement, in whole or in part and/or require the Grant Recipient to repay the
grant funds within thirty (30) days from written notice or allow the Grant Recipient the
opportunity to cure the default. This clause shall not be interpreted to limit the County's or
Economic Development's remedies in law or equity.
6. Miscellaneous.
A. Governing Law. This Agreement shall be interpreted and governed in accordance with the
laws of the State of North Carolina and Orange County. Grant Recipient shall at all times
remain in compliance with all applicable local, state, and federal laws, rules, and regulations
including but not limited to all state and federal anti - discrimination laws, policies, rules and
regulations and the Orange County Anti- Discrimination Policy. Any violation of the
requirement is a breach of this Agreement and County may immediately terminate this
Agreement without further obligation on the part of the County. This paragraph is not
intended to limit the definition of breach to discrimination. By executing this agreement
Grant Recipient affirms that Grant Recipient and any subcontractors of Grant Recipient are
and shall remain in compliance with Article 2 of Chapter 64 of the North Carolina General
Statutes. Where applicable, failure to maintain compliance with the requirements of Article 2
of Chapter 64 of the General Statues constitutes a breach of this Agreement. By executing
this Agreement, Grant Recipient certifies that Grant Recipient has not been identified, and
has not utilized the services of any agent or subcontractor, on the Iran divestment list created
by the State Treasurer pursuant to G.S. 147 - 86.58.
B. Status. Nothing contained in this Agreement shall be construed to create the relationship of
principal and agent, or employer and employee, between Grant Recipient and Economic
Development or Orange County Government. Grant Recipient understands and agrees that
he /she is not authorized to incur any expenses or any liability whatsoever on behalf of the
County or Economic Development and has no authority, expressed or implied, to obligate or
make representations on behalf of the County or Economic Development.
C. Entire Agreement and Signatures. The parties have read this Agreement and agree to be
bound by all of its terms, and further agree that it constitutes the complete and exclusive
Agreement between the parties unless and until modified in writing and signed by the parties.
This Agreement together with any amendments or modifications may be executed
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electronically. All electronic signatures affixed hereto evidence the intent of the Parties to
comply with Article 11A and Article 40 of North Carolina General Statute Chapter 66.
IN WITNESS WHEREOF, the Orange County and the Grant Recipient have signed this Grant
Agreement, effective on the last date this Agreement is signed by both parties as indicated by the dates set
forth under signatures below.
For r ° -7 --- - U, -�+' - --ant Recipient
By a 536E1D6081436...
Helen L. Haynes, Sole Proprietor
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Exhibit A
ORANGE COUNTY BUSINESS INVESTMENT GRANT PROGRAM
Guidelines
PURPOSE
The purpose of the Orange County Business Investment Grant Program (Grant Program) is to stimulate
successful non -farm Business Investment development and expansion in Orange County (County).
Farmers should complete the Orange County Agricultural Grant Application.
By making economic development grant funds available, the County will be growing its entrepreneurial
ecosystem, supporting existing Business Investment and early -stage venture growth, in order to
increase jobs, opportunities and grow the commercial tax base in Orange County.
Businesses receiving funding through this program will be encouraged to be good corporate citizens as
defined in Orange County's Economic Development Strategic Plan and encouraged to employ Orange
County residents.
The program will provide two types of grants:
• Small Grants: Up to $1,500.00
• Large Grants: From $1,500.01 - $10,000.00
GRANT SUBCOMMITTEE
The Grant Subcommittee (Subcommittee) will review all applications and make grant
recommendations. The Subcommittee will be comprised of 5 members from the Orange County
Economic Development Committee.
The Subcommittee Chair, elected by the Subcommittee, shall generally monitor the duties of the Grant
Program administration; make sure grant proposals are properly prepared prior to their presentations at
the Subcommittee meetings; and oversee the preparation of commitment letters to approved grantees,
with the assistance of County staff if needed. Grant commitment letters will be signed by the Chair
and /or by County staff.
The Subcommittee will have the following responsibilities:
• Find creative ways to grant funds to stimulate successful Business Investment development and
job creation.
• Review grant applications quarterly and, determine which applications meet eligibility
requirements and whether an eligible application will be approved, approved with conditions, or
submitted to the applicant for more information.
• Periodically review status of existing grants to determine if funds are being used in the manner in
which they were intended, and recommend appropriate corrective action where needed.
• Evaluate grant application requirements and make appropriate adjustments as needed to
accomplish the objectives of the program.
• Conduct annual review of grants and their impact on the County's Business Investment
environment.
• Provide explanation of why grant was not approved, if requested.
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GRANT PROGRAM ADMINISTRATION
The Grant Program will be administered by a Subcommittee consisting of five members from the
Orange County Economic Development Committee. The Subcommittee will meet quarterly to make
and facilitate grants. A quorum will consist of 3 voting members of the Subcommittee.
County staff may be utilized to service grants, including receiving applications, notifying applicants of
the Subcommittee's decision, making payment to recipients, and generating administrative reports.
DEADLINES (any given year)
• March 31 by 5:00 pm
• June 30 by 5:00 pm
• September 30 by 5:00 pm
• December 31 by 5:00 pm
FUNDING
The County will provide funding for the Grant Program through revenues generated from the Orange
County quarter cent sales tax.
COMMITMENT PERIOD
The County will support the Program until funding is exhausted; demand for the Program no longer
exists, or until it is no longer financially feasible.
ELIGIBILITY
• Applicant's business must be located in Orange County in areas zoned appropriately for their
use.
• Applicants must be business entities whose gross revenues do not exceed $1 million per year.
On a case -by -case basis, Grant requests from businesses with revenues exceeding $1 million
may be considered by the Subcommittee.
• Applicants and their businesses must not have any past due tax, fee, or fine in Orange County.
CONDITIONS OF RECEIVING A GRANT
• Applicant must fill out a grant application.
• Applicant may be asked to appear before the Subcommittee for an interview to detail how grant
funds will be used, and answer any questions about their business or application.
• Each venture receiving a grant must provide an accounting of how all funds were used and key
milestones reached by the venture within 180 days of the receipt of the grant.
• As a condition of receiving grant funds, Small Grant recipients may be required to commit to the
following mentoring period:
Amount of Request
o Below $1,000 1 hour session*
o $1,000 - $5,000 3 hour session*
o $5,000 - $10,000 5 hour session*
*unless waived
with an experienced business coach or mentor at:
➢ SCORE Chapel Hill (Service Corps of Retired Executives)
321 W. Rosemary Street, Chapel Hill, NC 27516
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(919) 968 -6894
https: / /chape]hiI1.score.org/
Chapel hiIIinfo a)scorevolunteer.org
➢ SBTDC (Small Business & Technology Development Center)
UNC Chapel Hill, 1700 Martin Luther King Jr Blvd
Suite 115 / CB# 1823, Chapel Hill, NC 27514
(919) 962 -0389 http: / /www.sbtdc.org/ offices /unc / #sthash.UJQOZWOL.dpuf
➢ Launch Chapel Hill (by application)
321 W Rosemary St, Chapel Hill, NC 27516
(919) 240 -7765
http : / /www.launchchapelhill.com /
info @launchchapelhill.com
➢ 1789 Venture Lab (by application)
173'/2 East Franklin Street, Chapel Hill, NC 27514
http: / /1789venturelab.com/
1789management(aD_gmail.com
➢ A mentor approved by the Subcommittee
ELIGIBLE USES OF GRANT PROCEEDS
• Startup funding.
• Working capital or operational funds to be used for a specific purpose.
• Purchase of equipment, or machinery.
• Expansion of business services or products.
• Work force expansion.
• Tenant up -fit or leasehold improvements.
GRANT PROCEEDS SHALL NOT BE USED FOR THE FOLLOWING
• Paying off or down existing bank debt or investor loans
• Purchase of equipment or improvement of real estate, which are used or to be used for
personal use
• Political activities
• Owner salary
• Speculative ventures (Examples: drilling for gas or oil, commodity futures).
• Lending or investment
• Real property held for sale or investment
• Pyramid sales - distribution plan businesses
• Foreign controlled businesses
• Private membership clubs
COMPLIANCE WITH APPLICABLE REGULATIONS
In all cases, grants made from this program must be consistent and in accordance with the following:
• All state and local regulations governing the applicant's business.
• Terms and conditions established by the Subcommittee for each particular applicant.
• Policies established by the Board of County Commissioners dealing with the Grant Program.
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• Ventures that implement planning and economic development policies which create a balanced,
dynamic local economy that promotes diversity, sustainable growth, and enhanced revenue while
embracing community values will also be given priority.
AMOUNT OF GRANTS
Small Grant - Minimum Up to $1,500.00
Grant applications for $1,500.00 or less will have a separate and simplified application.
Large Grant - Maximum Up to $10,000.00
Grant applications for $1,500.01 or more will require additional financial information and documentation
of how grant proceeds will be used. Should market conditions change, or in the event of an applicant
with extraordinary conditions, a grant amount exceeding the maximum may be considered by the
Subcommittee. All grants are subject to availability of funds.
Grant Application Guidelines
Small Grant Application Requirements
($1,500.00 or less; 2 - 3 pages)
Business Information:
1. Business Name /DBA
2. Street Address /Mailing Address
3. Date Established
4. Number of Employees
5. Business phone number
6. E -mail address
7. Tax ID/ Employment Identification Number
Business Financial Information:
8. Annual Sales for the past 3 years (if applicable)
9. Business Financial Statements (for 3 years, if
applicable)
10. Current Business Checking Account Balance
11. Balance In Other Accounts
12. Existing Business Debts
13. 250 -500 Word Description Of Business
(When & where it was started, market, target
customer, future plans, etc.)
Grant Use Details
14. Amount of Grant Requested & Detailed Use of
How Funds Will Be Used (2 -3 pages)
Large Grant Application Requirements
($1,500.01 - $10,000.00; 8 - 15 pages)
Business Information:
1. Business Name /DBA
2. Street Address /Mailing Address
3. Date Established
4. Number of Employees
5. Business phone number
6. E -mail address
7. Tax ID/ Employment Identification Number
8. Primary bank
9. Accounting firm
10. Attorney
Business Financial Information:
11. Annual Sales for the past 3 years (if applicable)
12. Business Financial Statements (for 3 years, if
applicable)
13. Current Business Checking Account Balance
14. Balance In Other Accounts
15. Existing Business Debts
Description of Business Operations:
16. Detailed Written Business Plan (5 -10 pages) or
PowerPoint Pitch Deck
Grant Use Details
17. Amount of Grant Requested & Detailed Use of How
Funds Will Be Used (2 -3 pages)
SUGGESTED SMALL GRANT GUIDELINES
Use of Funds - Priority will be given to ventures demonstrating a clear need for grant funds to grow their
business, hire additional staff, grow the commercial tax base, and /or create a significant social and
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economic impact in the County.
SUGGESTED LARGE GRANT GUIDELINES
High Potential Founders - Although all applicants will be considered, business owners who exhibit the
following characteristics will be given priority:
a. Have a thorough understanding of their market
b. Have assembled a talented team
c. Have a passion for building their venture in Orange County
High Potential Ventures - Priority will be given to "growth" ventures capable of expanding rapidly,
renting office space in Orange County, and hiring Orange County employees.
Use of Funds - Priority will be given to applicants demonstrating a clear need for grant funds to grow
their business, hire additional staff, grow the commercial tax base, or create a significant social impact in
the County.
PROCEDURES
1. Applicants will be referred to the Orange County Economic Development (Department) website
where they will complete and submit their application. Applications (with required documents)
should be submitted via:
• email: edcmail(o)orangecountync.gov
• mail /deliver: Orange County Economic Development
131 W. Margaret Lane, Suite 205
Hillsborough, NC 27278
1. If asked to appear before the Subcommittee, applicants will be provided interview dates and
times no later than two weeks prior to the Subcommittee's next meeting date.
2. County staff will provide completed applications to the Subcommittee for their review no later
than three weeks prior to its next scheduled meeting.
3. At its scheduled quarterly meeting, the Subcommittee will discuss the strengths and weaknesses
of complete grant application(s) and decide whether or not to take action on the request, based
on the information provided.
4. The Subcommittee shall approve, deny or request additional information from the applicant.
They will submit determinations in writing to County staff.
5. The applicant will be informed in writing by County staff of the Subcommittee's decision to deny,
grant, grant with condition, or seek more information.
6. Should the Subcommittee deny an application; the Subcommittee will not consider any
applications from that applicant for at least six months. Should an applicant think that their
application has been improperly denied, then the applicant may notify, in writing, the
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Subcommittee. The notice to the Subcommittee shall state why the applicant thinks the grant
should be approved. The application shall then be given further consideration by the
Subcommittee and its decision is final.
7. At its discretion, the Subcommittee may impose any additional terms to a grant request. The
Subcommittee may require an itemized budget detailing the proposed use of grant funds.
8. Applicants agree to utilize grant funds for their intended use. Each venture receiving a grant
must provide an accounting of how all funds were used, or will be used, and key milestones
reached by the venture within 180 days of the receipt of the grant.
9. As a condition of receiving grant funds, Small Grant recipients may be required to commit to a
mentoring period as detailed above (CONDITIONS OF RECEIVING A GRANT) unless waived
by the Grant Subcommittee.
10. If an applicant fails to complete items #8 and #9 in a timely manner, the County has the right to
require all grant funds back from the applicant, and may initiate legal proceedings against the
applicant.
11. The Subcommittee shall provide annual reports to the Economic Development Department and
the BOCC of the number of grants requested, approved and denied, and a 2 -3 page written
analysis of the program's success metrics to date.
12. Documents, including but not limited to financial statements, business plans, customer and
supplier lists, description of inventory or assets, contractual obligations and existing liabilities,
submitted during the application process shall be treated as confidential information.
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Exhibit 6
Additional Terms
Commit to mentoring with an experience business coach or mentor at SCORE Chapel Hill, SBTDC-
Chapel Hill (Small Business & Technology Development Center), Launch Chapel Hill (by application),
1789 Venture Lab (by application) or a mentor approved by the Subcommittee.
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