Title
Request Authorization to Enter into Contracts with the Arizona Community Foundation and International Rescue Committee for COVID-19 Microbusiness Grant Funds and Technical Assistance (Ordinance S-46710)
Description
Request to authorize the City Manager, or his designee, to enter into contracts and take other actions as necessary or appropriate to implement the Refugee Microbusiness Assistance Program with the Arizona Community Foundation (ACF) and the International Rescue Committee (IRC) to fund COVID-19 Refugee Microbusiness grants, service fees and technical assistance to business owners who are refugees. Total funding for this grant program will not exceed $300,000. Further request authorization for the City Controller to disburse all funds related to this item. Funding is available through the City of Phoenix's Coronavirus Relief Fund. There is no impact to the General Fund.
Report
Summary
On May 9, 2020, City Council approved allocating $300,000 for Refugee Microbusiness Assistance. Of this amount, $250,000 will be available for grants and $50,000 for servicing ($4,750 for ACF) and technical assistance support ($45,250 for IRC). ACF will administer this grant fund, including hosting the website for grant application, submittals, notifying applicants of grant application status, and distributing funds to eligible refugee microbusinesses. IRC will provide technical assistance, translation and application verification for refugee-owned microbusinesses. Under this agreement, IRC will work with other refugee resettlement agencies and other organizations that assist and provide support to refugees and asylees. The term of the contract will begin on or about June 3, 2020 through Dec. 30, 2020.
Refugee Microbusiness Assistance
If approved, a grant funding agreement will be executed with ACF and IRC for direct funding of $250,000 towards the Refugee Microbusiness Assistance fund for refugee-owned microbusinesses, up to $5,000 each. Applicants will be required to meet the following business criteria:
- In operation since Jan. 1, 2019
- Five or fewer employees
- Less than $1 million in sales
- 25 percent reduction in gross sales in March and April of 2020 to the same period in 2019
Procurement Information
ACF was selected as a sole source provider given its experience administering the Phoenix IDA's Small Business Relief Grants and other Resiliency Grants, the infrastructure already in place, and its long-standing reputation in the community for financial stewardship and integrity. IRC was selected as a sole source provider given its experience in providing technical support to the refugee business community. The two vendors were identified in accordance with Administrative Regulation 3.10 to implement and administer the COVID-19 Refugee Microbusiness Assistance Program.
Contract Term
The term of these contracts will begin on or about June 3, 2020 through Dec. 30, 2020. This contract may be extended for an additional year based on continuous need and available funding, which may be exercised by the City Manager or his designee.
Financial Impact
The aggregate value of this contract shall not exceed $300,000. Funding will be provided through the City of Phoenix's Coronavirus Relief Fund. There is no impact to the General Fund.
Department
Responsible Department
This item is submitted by Assistant City Manager Deanna Jonovich, Deputy City Manager Mario Paniagua, and the Neighborhood Services and Community and Economic Development departments.