HomeMy WebLinkAbout2020-405-E Economic Dev-Honey Magpie small business emergency grantEsbfp 070120 v1
ORANGE COUNTY ECONOMIC DEVELOPMENT
EMERGENCY SMALL BUSINESS FUNDING PROGRAM GRANT AGREEMENT
THIS AGREEMENT, entered into this 8th day of July, 2020, by and between Orange County
(“County”), and Honey Magpie (“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 July 8, 2020 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 FIVE THOUSAND DOLLARS ($5,000.00)
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.
C. Maintain Certain Conditions.
Grant Recipient shall endeavor to meet the following conditions but in no case fail 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, 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.
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
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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: ___________________________________
Rachael Hurwitz
For and on behalf of Orange County Government
_______________________________________
Bonnie Hammersley, County Manager
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Exhibit A – Emergency Small Business Funding Program Policies and
Procedures
PURPOSE
The Orange County Board of County Commissioners (BOCC) adopted the Emergency Small
Business Funding program on March 24, 2020 in response to the coronavirus pandemic. The
purpose of the Emergency Small Business Funding Program is to provide capital to small
businesses that experience significant financial loss during an emergency or economic crisis
Additional funding was allocated to the program by the BOCC on Tuesday, June 2, 2020.
PROGRAM ADMINISTRATION
The Economic Development management and Chief Financial Officer will provide program
administration. The formation of a Funding Committee will provide grants to eligible small
businesses. The maximum award is $5,000 for grants.
COMMITTEE STRUCTURE
The Funding Committee composition includes:
1. Two members from the County’s Small Business Company non -profit
2. Two members from the Small Business Grant program
3. Two members from the Agriculture Grant program
4. One member each from the Towns of Carrboro, Chapel Hill and Hillsborough.
The Funding Committee responsibilities are:
1. Review and Approve Financial Scoring Criteria
2. Review and Approve County Ranking
3. Approve Grant Awards
PROCEDURES
1. Business applicants upload applications, financials and tax data by deadline.
2. County staff will inform business applicants deemed ineligible in writing.
3. County staff will inform awardees in writing of the Funding Committees decision.
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4. County staff will provide a final report to the Manager and Board of County
Commissioners.
CREDIT ANALYSIS
The Funding Committee shall review and consider a number of items in determining whether a
grant should be awarded, including the following:
1. County Financial Scoring Matrices
2. Annual and Monthly Financial Statements from businesses software and Federal and
State Tax Returns; up to Three Prior Years
3. CPA Prepared Financial Statements and Management Letter
BUSINESS APPLICANTS ELIGIBILITY
1. Business applicants must be located within Orange County in communities zoned
appropriately.
2. Minimum of one-year in operation, hold applicable business privilege licenses.
3. Ineligible businesses include, but 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 June 26th, 2020 or currently in
bankruptcy (Corporate or Personal) are not eligible.
4. Businesses who have already received COVID-19 related financial assistance from
either the state, federal or local governments are not eligible to apply for this round of
funding. Examples of these types of programs include Paycheck Protection Program
(PPP), Economic Injury Disaster Loan (EIDL), Carrboro Small Business and Non-Profit
Emergency Loan/Grant Fund. This doesn’t include personal loans or personal stimulus
funds received.
5. Business applicants must be for-profit business entities that can show profitability prior to
the emergency and/or economic crisis.
6. Business applicants must be willing to contract for management and technical assistance
if recommended by the Funding Committee.
7. Business applicants must submit certain financial and tax information to the County’s
Finance Department including Federal Tax ID, bank and financial institution account
information including voided check.
CORPORATE AND SOCIAL GOVERNANCE
Business applicants shall endeavor to meet the following conditions but in no case fail 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%
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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, owner affidavit.
Validation of meeting the selected requirement will be obtained six months from the award date.
ELIGIBLE USES OF PROCEEDS
1. To retain work force
2. Payroll expenses
3. Purchase of equipment, commercial-use vehicles, or machinery
4. Improvement of owner-occupied commercial property; owner must occupy 50% or more
of total space
5. Sustain or Expand business services or products
6. Acquisition of owner-occupied commercial real estate (minimum 5- year lease terms)
7. Tenant up-fit and lease-hold improvements
INELIGIBLE USE OF PROCEEDS
1. Refinancing existing bank debt or investor loans; the Funding Committee may
recommend an exception not to exceed 50% of loan value
2. Purchase of equipment or improvement of real estate to be used for
personal use
3. Political activities or private membership clubs
4. Owner salary and dividend payments beyond an agreed upon amount
5. Speculative ventures such as drilling for gas, oil, and commodity futures
6. Lending or investment purchases
7. Real property held for sale or investment
8. Pyramid sales - distribution plan businesses
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9. 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
10. Foreign controlled businesses
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ORANGE COUNTY EMERGENCY LOAN PROGRAM—INTERNAL USE ONLY
______________________________________________________________________________
Department
Party/Vendor Name: Honey Magpie Party/Vendor Contact Person: Rachael Hurwitz Contact
Phone: 203-430-1881 Party/Vendor Address: 104 Waverly Forest Lane City: Chapel Hill State:
NC Zip: 27516 Department: Economic Development Amount: $5,000 Purpose: Emergency Small
Business Funding Program Budget Code(s): 34600020-900047 Vendor # 66425 (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 Director’s Signature _________________________________ Date: _________
Financial Services
This instrument has been pre-audited in the manner required by the Local Government Budget and
Fiscal Control Act:
Office of the Chief Financial Officer _______________________________ Date: _________
Legal Services
This agreement is approved as to legal form and sufficiency:
Office of the County Attorney _____________________________________ Date: _________
Clerk to the Board
Received for record retention:
All DocuSign contracts must be copied to Sherri Ingersoll upon completion:
singersoll@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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7/10/2020
7/10/2020
7/13/2020