Title
Small Business Workforce Training Program (Ordinance S-48377)
Description
Request to authorize the City Manager, or his designee, to utilize the remaining $1.625 million of the $2 million American Rescue Plan Act (ARPA) funded Small Business Workforce Program for the implementation of a new Small Business Workforce Training Improvement Program and to execute contracts to codify program requirements with the awarded entities. Further request the City Controller to disburse all funds related to this item. This item will have an aggregate amount of $1.625 million. There is no impact to the General Fund. Funding is available through the City's allocation of the American Rescue Plan Act (ARPA) received from the federal government and is under the City's Small Business Workforce Program category.
Summary
On June 8, 2021, City Council authorized $2 million in ARPA funding for a Small Business Workforce Training Program to assist small businesses in Phoenix with specialized training resources and/or assistance to enhance or expand their talent pipeline. To date, two programs have been implemented.
PHXbizConnect
On May 5, 2020, City Council approved $100,000 of federal Coronavirus Relief Funds to invest in a small business program to assist Phoenix businesses with their recovery efforts. On Nov. 4, 2020, City Council authorized a contract with CO+HOOTS to launch and maintain a technology-driven community platform. This platform, called the HUUB, a robust digital platform that supports local governments in revitalizing small businesses during, and after the COVID-19 pandemic, was launched on March 3, 2021, and is providing on-demand expertise, guidelines and solutions to assist Phoenix small businesses in recovering from the impacts of COVID-19. This platform, is made available in both English and Spanish, and streamlines support for small businesses in one central location, or hub, to assist with business stabilization, recovery, and resiliency of Phoenix small businesses. On July 1, 2021, City Council approved a one-year $295,000 contract extension with CO+HOOTS using ARPA funds as registered businesses indicated PHXbizConnect had been vital in helping them navigate through the pandemic, connect to grants, and grow their business during this critical time.
Local First Arizona Incubator Kitchen
On Jan. 5, 2022, City Council approved an $80,000 sponsorship for a new walk-in cooler at the Rio Salado College Thomas campus located at 3631 W. Thomas Rd. for the development of a new Local First Arizona incubator kitchen facility to amplify efforts to grow food businesses in west Phoenix. The development of this new incubator kitchen facility will be leveraged to implement business development and technical assistance programs aimed at rebuilding the restaurant industry and strengthening the food economy in an under-resourced area of Phoenix, benefiting approximately 125 entrepreneurs annually with the physical resources needed to grow their businesses.
Proposed Small Business Workforce Training Improvement Program
This proposed new program will assist Phoenix-based organizations with capital investments or improvements to expand or enhance small business training programs and/or demonstration projects that benefit the Phoenix entrepreneurial/small business community. Organizations can apply for up to $200,000 to expand and/or enhance their offerings with the following eligibility and requirement criteria:
- Eligibility: The program and/or demonstration project must operate in Phoenix and provide proof of the concept to include: a) History of the proposed program and/or demonstration project; and b) One year proven success rate for the program or equivalent experience in the project's industry.
- Requirements: Applicants must provide three quotes for the requested equipment or physical improvements to expand/enhance their organization's small business training offerings, and provide the number of people to be served and to benefit from the program improvement funds.
An evaluation panel comprised of City staff and Phoenix Business and Workforce Development Board members will review each application for eligibility and provide recommendation for approval or denial. Approved applicants will enter into contracts with the City to outline the terms and conditions of awarded funds.
Contract Term
Agreements with awarded organizations will be executed to effectuate terms and conditions.
Financial Impact
The aggregate amount of the Small Business Workforce Training Improvement Program is $1.625 million. This amount reflects the remaining funds available from the original $2 million that City Council authorized for the Small Business Workforce Training Program, of which $375,000 was previously approved for funding. There is no impact to the General Fund. Funding is available through the City's allocation of the American Rescue Plan Act (ARPA) received from the federal government and is under the City's Small Business Workforce Program category.
Department
This is submitted by Deputy City Manager Ginger Spencer and the Community and Economic Development Department.