HomeMy WebLinkAbout2021-111-E Economic Dev-ACME Food&Beverage Company emergency business grant DocuSign Envelope ID: F81750CF-2581-4BF3-B1D2-0061AAA5BE8E
ORANGE COUNTY ECONOMIC DEVELOPMENT
EMERGENCY SMALL BUSINESS FUNDING PROGRAM GRANT AGREEMENT
THIS AGREEMENT, entered into this 16' day of February, 2021, by and between Orange
County ("County"), and ACME FOOD & BEVERAGE COMPANY ("Grant Recipient").
WHEREAS, the COVID-19 pandemic has impacted the global markets and disrupted
economic and business growth throughout the United States including Orange County; and
WHEREAS, on March 10, 2020, the State of North Carolina declared a State of
Emergency in response to the COVID-19 outbreak, followed by the federal government
declaring a State of National Emergency on March 13, 2020, and a Stay-at-Home Order issued
by Orange County on March 26, 2020; and
WHEREAS, the pandemic and emergency orders have negatively impacted the
workforce, businesses, industries and economies with closures and depressed economic
activity; and
WHEREAS, the County is committed to supporting its local businesses and created an
emergency funding program on March 26, 2020 using approximately $300,000, adding an
additional $410,000 on June 2, 2020, of Article 46 Sales Tax revenue originally budgeted for the
Small Business Loan Program and making this grant pursuant to its authority granted in N.C.
Gen. Stat. 153A-376 and Chapter 166A; and
WHEREAS, the emergency program is targeted to small businesses experiencing
revenue loss due to the pandemic in the form of both grants and loans intended to provide
immediate financial assistance in order to continue operations, return furloughed employees to
work or prevent further closures and layoffs.
NOW THEREFORE, the County and the Grant Recipient, for the consideration and
under the conditions hereinafter set forth, agree as follows:
1. Approved Grant. Grant funds are provided for the project ("Project") described in the
Grant Recipient's Grant and Loan Application ("Application"), dated January 4, 2021
and incorporated by reference, subject to this Agreement, the Emergency Small
Business Funding Program Guidelines ("Guidelines"), attached as Exhibit A.
2. Grant Award. Grant funds in an amount of THREE THOUSAND DOLLARS ($3,000.00)
have been awarded as described in Exhibit A 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
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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 Policies and Procedures. The grant shall be utilized solely
for its intended use, as detailed in the Application. Should the County, in its sole
discretion, determine Grant Recipient used the grant funds for any prohibited
purpose or ineligible use or in any other way violated the terms of this Agreement the
Grant Recipient agrees to, upon County's written demand, repay to County all grant
funds within thirty (30) days of said written demand.
C. Maintain Certain Conditions.
Grant Recipient shall endeavor to meet at least one of the following conditions for at
least one year: (a) Job Retention, within six months of the award retain at least 50%
of the work force that existed on January 1, 2020 and retain 100% within one year of
the award date; (b) Living Wage, pay 90% of Borrower's work force a living wage of
$15 per hour; or (c) Community Participation and Involvement, in kind service,
discounts or donation to first responders, healthcare and other front line workers in
the amount of at least $250 annually for award recipients with net income of up to
$100,000 and at least $500 annually for all others. Any value derived from discounts
shall be the result of at least 15% off retail price. Determinations regarding qualifying
recipients of in kind services or donations shall be at the sole discretion of the
County. Borrower shall supply evidence of compliance through NC Employment
Commission reports, IRS 941 Payroll quarterly reports, Orange County Living Wage
certificate or, if those are inapplicable, a notarized owner affidavit.
4. Indemnity. The Grant Recipient agrees to indemnify and hold harmless the County 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.
A. In the event of any of the circumstances set forth below (hereinafter referred to as
"default"), the County 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 Emergency Small Business Funding Application, and/or any
Emergency Small Business Program Guideline, as determined by the
Committee in its sole discretion.
iii. Failure to adhere to the terms of applicable county, state, or federal laws,
regulations, or stated public policy.
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B. In the event of default by the Grant Recipient, the County 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 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 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 and has no authority, expressed or implied, to obligate or make
representations on behalf of the County.
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 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.
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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 and on behalf of the Grant Recipient
By; �rauusC&Awbw
Francesca Mason, Treasurer
For and on behalf of Orange County Government
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Bonnie Hammersley, County Manager
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Exhibit A — Round 3 Emergency Small Business Funding Program
Policies and Procedures
The purpose of the Orange County Emergency Small Business Funding Program is to
assist Orange County-based small businesses that are experiencing financial difficulties such as
mandated shutdowns, employee layoffs, and operating losses as a result of ongoing efforts at
the Federal, State and local authorities to contain and minimize the spread of the COVID-19
pandemic.
Applications for Orange County's Round #3 Emergency Small Business Grant Program
will be available beginning at 12:00 p.m. on Monday, January 4, 2021 at the following location
on the Orange County Website: http://orangecountVnc.gov/2362/Emergency-Small-Business-
Funding-Program. The application and supporting materials must be submitted by 5:00 p.m. on
Wednesday, January 20, 2021, for the application to be considered.
Businesses that have already received COVID-19 related financial assistance from
either the state, federal or local governments are eligible to apply for this round of funding.
Examples of these types of programs include Paycheck Protection Program (PPP), Economic
Injury Disaster Loan (EIDL), Small Business Administration (SBA) Loan, Carrboro Small
Business and Non-Profit Emergency Loan/Grant Fund.
Program Funding
Orange County is providing up to $250,000 in funding to support individual grants of
approximately$3,000 per applicant for all finalist applicants to the Round #3 program. Final
award amount will be determined based on the total number of eligible applications received.
General Terms and Conditions
• Open to Orange County, N.C., based for-profit businesses.
• Minimum of one-year in operating history, and hold applicable 2019 business privilege
licenses.
• Ineligible businesses include, but are not limited to, companies involved in real estate
investment, multi-level marketing, adult entertainment, or firearms. Companies with
outstanding local tax liabilities or tax liens as of February 1, 2021, or currently in
bankruptcy (Corporate or Personal) are not eligible. Companies that have a past due
balance as of February 1, 2021 with the Orange County Small Business Loan Program
are also ineligible.
• Profit and Loss statement indicating profitability prior to the Covid-19 coronavirus
pandemic
Information Required as Attachments
• 2019 Tax Return
• Profit/Loss Statement from January 1, 2019 through December 31, 2019
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• September 2019 Revenue (Subsidiary ledger and verified by copy of NC DOR E-500
Sales and Use Tax Report)
• September 2020 Revenue (Subsidiary ledger and verified by copy of NC DOR E-500
Sales and Use Tax Report)
• Quarterly Tax and Wage Reports (Form NCUI 101 or IRS 941); business will redact all
employee SSN
• Bank Statements (from March-October 2020)
• Copy of front and back of North Carolina driver's license or government-issued ID.
Requirements to Receive a Grant
• Grant Recipient shall endeavor to meet at least one of the following conditions for at
least one year:
a) Job Retention, within six months of the award retain at least 50% of the work force
that existed on January 1, 2020 and retain 100% within one year of the award date;
b) Living Wage, pay 90% of Borrower's work force a living wage of$15 per hour; or
c) Community Participation and Involvement, in kind service, discounts or donation to
first responders, healthcare and other front line workers in the amount of at least
$250 annually for award recipients with net income of up to $100,000 and at least
$500 annually for all others. Any value derived from discounts shall be the result of at
least 15% off retail price. Determinations regarding qualifying recipients of in kind
services or donations shall be at the sole discretion of the County.
• Borrower shall supply evidence of compliance through NC Employment Commission
reports, IRS 941 Payroll quarterly reports, Orange County Living Wage certificate or, if
those are inapplicable, a notarized owner affidavit.
• Grant recipients shall commit to a minimum of 2-hours of mentoring with the Small
Business Technology Development Center within the 9-month period following the grant
award. Grant recipients must provide proof of initial contact with SBTDC prior to the
County transferring grant funds.
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
Eligible Uses of Funds
Each of the eligible uses of funds below will be evaluated in the context of being necessary
for businesses to provide services in a different manner due to "social distancing" requirements
or mandated closures caused by COVID-19
• Fund working capital or operational funds to retain employees during the COVID-19
pandemic
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• Purchase equipment, commercial-use vehicles, or machinery for the business
• Improve owner-occupied commercial property; owner must occupy 50% or more of total
space
• Sustain or expand business services or products
• Retain or expand workforce development and job creation
• Fund tenant up-fit and lease-hold improvements to the business
Ineligible Uses of Funds
• Refinancing existing bank debt or investor loans; the Funding Committee may
recommend an exception not to exceed 50% of loan value
• Purchase of equipment or improvement of real estate to be used for
o personal use
o Political activities or private membership clubs
• Owner salary and dividend payments beyond an agreed upon amount
• Speculative ventures such as drilling for gas, oil, and commodity futures
• Lending or investment purchases
• Real property held for sale or investment
• Pyramid sales - distribution plan businesses
• Floor plan financing which is defined as a revolving line of credit that allows the borrower
to obtain financing for retail goods; these loans are secured on collateral including
vehicles, recreational vehicles and manufactured homes
• Foreign controlled businesses
All grant funds must be used for the intended eligible use(s) and may not be used to cover the
cost of the meeting the Community Participation and Involvement condition listed under the
Corporate and Social Governance section, or potential tax liability of receiving the funds.
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ORANGE COUNTY EMERGENCY LOAN PROGRAM—INTERNAL USE ONLY
Department
Party/Vendor Name: ACME FOOD & BEVERAGE COMPANY Party/Vendor Contact Person:
Francesca Mason Contact Phone: 919-270-3597 Party/Vendor Address: 110 E Main Street City
Carrboro State:NC Zip: 27510 Department: Economic Development Amount: $3,000 Purpose:
Emergency Small Business Funding Program Budget Code(s):48600020-900091 Vendor#49419
(N/A if new vendor)
This agreement is approved as to technical form and content and I as Department Director
affirmatively state work on this project has not been initiated prior to execution of the agreement:
Department Directors Signature Date: 2/17/2021
Financial Services
This instrument has been pre-audited in the manner required by the Local Government Budget and
Fiscal Control Act:
2/18/2021
Office of the Chief Financial Officer Date:
Leal Services
This agreement is approved as to legal form and sufficiency:
Office of the County Attorney r �°� Date: 2/19/2021
L �,-
Clerk to the Board
Received for record retention:
All Docusign contracts must be copied to the Clerk upon completion:
occlerkdocs@orangecountync.gov
The following signature block is for hard copies only and is not required for DocuSign contracts:
Office of the Clerk to the Board Date:
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