Title
Small Business Workforce Improvement Training Program Modification
Description
Request to authorize the City Manager, or his designee, to increase the maximum funding Phoenix-based organizations can request when applying for the Small Business Workforce Training Improvement Program from $200,000 to $250,000 per applicant to expand and/or enhance their small business training programs and/or demonstration projects that benefit the Phoenix entrepreneurial/small business community. 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.
Report
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. On July 1, 2021, City Council approved using ARPA funding for a one-year $295,000 contract extension with CO+HOOTS as registered businesses indicated PHXbizConnect had been vital in helping them navigate through the pandemic, connect to grants, and grow their business. 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 Road, for the development of a new Local First Arizona incubator kitchen facility to amplify efforts to grow food businesses in west Phoenix.
On March 2, 2022, City Council allocated the remaining $1.625 million in ARPA funds to implement the Small Business Workforce Training Improvement Program to 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 with the following eligibility and requirement criteria. This approval included a limit of $200,000 for applicants.
- 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. If approved, this action will increase the $200,000 application request maximum to $250,000.
Contract Term
Agreements with awarded organizations will be executed to effectuate terms and conditions if approved by City Council.
Financial Impact
There is no net financial impact by this action to the program. The aggregate amount of the Small Business Workforce Training Improvement Program remains at $1.625 million as approved by City Council on March 2, 2022. There is no impact to the General Fund. Funding is available through the City's allocation of ARPA funding received from the federal government and is under the City's Small Business Workforce Program category.
Concurrence/Previous Council Action
On March 2, 2022, City Council allocated the remaining $1.625 million in ARPA funds to implement the Small Business Workforce Training Improvement Program.
Department
Responsible Department
This is submitted by Deputy City Manager Ginger Spencer and the Community and Economic Development Department.