Faribault City Council Approves More CARES Assistance
The Faribault City Council Tuesday night approved using more CARES Act dollars to assist Non-Profits, provide housing assistance and a second round of business relief. Community and Economic Development Director Deanna Kuennen requested approval of resolutions for each and the Council unanimously approved all of them.
Kuennen stated, "Our non-profits were just as impacted by COVID-19 as many of our businesses have been. They've lost their revenue sources. They are unable to fund raise and we know that these non-profits provide very essential services to our community. So the $400,000 would provide one-time assistance to these non-profit organizations allowing each organization to qualify for up to $20,000."
Kuennen added, "They would have to be a registered non-profit with a principal location in Faribault. They would have to demonstrate there was an income loss or an increase in services provided. They could employ between zero and 50 employees and they would have had to be operational for at least a year prior to March 1."
The City will be taking applications beginning this Friday through September 11.
$200,000 is being earmarked for direct housing assistance to qualified Faribault households. Kuennen said, "Emergency financial assistance to individuals and families is an allowable use through the CARES Act. Funding can be created for programs to help our residents avoid evictions, avoid foreclosures and also prevent homelessness."
"We would like to partner with Three Rivers Community Action Council. Three Rivers is one of the organizations that's already working with the state of Minnesota to distribute over 100 million dollars of housing assistance through the CHAP program which is the COVID-19 Housing Assistance Program. They would administer this on behalf of the city following those same, exact CHAP Program guidelines making this $200,000 available to only our residents. They would provide reporting to us so we know how many households were served and the demographics of those households. They would do this at no cost to the city."
The Faribault Community and Economic Development Director added, "They have mechanisms in place, programming, staff, interpreters, systems, all of that to support that. They already this serve this community. There is already an existing partnership and relationship." They would be able to administer the program for the city.
"They would estimate that each family would qualify for approximately $3,000 dollars based on the information that they have. This would then serve up to an additional 70 families."
The third resolution established the Faribault Small Business Relief Fund Round 2. "This would make $150,000 dollars available to sole proprietors, self-employed entrepreneurs and home based businesses. $2,500 would be available per business for operating expenses or direct business expenses. It would not allow a home based business to pay for household expenses."
Kuennen added, "They would have to be locally owned and operated. Operational six months prior to March 1, 2020. Be licensed and in good standing with the Minnesota Secretary of State and the Department of Revenue. Be current on property taxes. Be able to demonstrate a loss. Those online applications would also be available for the same time period the non-profits would be available. August 28 through September 11."
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