The Town of Hammonton has appropriated a $315,000 award from Atlantic County’s federal Community Development Block Grant CARES Funds (CDBG-CV) for a COVID-19 Small Business Assistance Program. The program is being established to provide working capital funds to the community’s small businesses that have been negatively impacted by the COVID-19 pandemic. The following is a description of the overall program. In order to apply, please fill out Pre-Application Form below. This is the pre-requisite to receiving the full application packet

1. 1. 1. PROGRAM OBJECTIVES The Town of Hammonton Small Business Assistance Program has been established to provide working capital funds to community businesses economically impacted by the COVID-19 virus. The program component makes funds available for 180 days of verifiable working capital up to a grant ceiling of $10,000. CDBG Small Business Assistance funds may be used to assist Town of Hammonton retail, restaurants, entertainment, and nonprofessional service businesses with no more than 10 employees (full time equivalent positions) that were in business as of December 31, 2019. To be eligible, the business must have one employee, which can be the business owner, who will be retained and meets the low/moderate income requirement ($47,150 per year or below); or the business is located in an eligible program area. Benefiting businesses should have solid commitments to remain open or reopen, and retain or re-employ at least one permanent job. Businesses deemed ineligible by the US Dept. of Housing and Urban Development will not be eligible.

   Businesses must enter into a financial assistance agreement, referred to as the “Participation Agreement,” at agreed upon terms with the Town.

   1. 1. ELIGIBLE ACTIVITIES The business may use funds for working capital expenses. Eligible expenses include payroll, rent/mortgage, utilities such as internet or electricity, advertising/marketing, insurance and/or cost to comply with the State of New Jersey and any local social distancing policies. Specifically excluded from eligible expenses are public utility payments and taxes (unless they are in escrow and included in a regular mortgage payment).
   1. 1. REQUIREMENTS, DISCLAIMERS, FEDERAL COMPLIANCE AREAS The following requirements apply to all applications submitted for consideration under the CDBG-CV Program.
         1. The Business must be located within Town of Hammonton.
         2. The grant funds may be used to pay eligible expenses for a 180-day period.
         3. Applicant must provide list of expenses to be paid with grant application and backup documentation.
         4. All grants must meet the CDBG National Objective of Low/Mod Income Benefit for the participating business. The business must document that it will create, retain or rehire at least one permanent job held by a low- and moderate-income person and that the jobs would be lost without the CDBG assistance. The business must document the income of the low- and moderate-income person through a certification by the business owner that the job is held by a low-moderate income person (based on a one-person household) or the business can presume that the job is held by a low- and moderate-income person if 1) the employee resides in a qualified low-income area or 2) the business is located in a qualified low-income area. Applicant must provide list of employees and their salaries.
         5. Applicant must certify that they will remain open or reopen if grant funds are received. If the applicant does not remain open or reopen, the grant funds must be returned.
         6. Applicant will be required to complete a grant application and sign a Participation Grant agreement.

   Funds are available to all eligible businesses meeting program requirements until all funds are distributed. The Town reserves the right to reject applications that it deems do not meet the criteria of the program.

   1. 1. SPECIAL REQUIREMENTS The following requirements, in addition to those listed above, apply to applications submitted for consideration under the CDBG-CV Small Business Assistance Program.
         1. All applications are reviewed to determine whether CDBG-CV funding is appropriate. The business must submit supporting financial data as indicated. The Town will review each application to determine whether funding is appropriate and whether the activity complies with the guidelines for evaluating project costs and financial feasibility set forth in CDBG regulations at 24 CFR 570.209(a). A financial review will be conducted to ensure that there are no Duplication of Benefits.
         2. The amount of CDBG grant assistance provided to a business will be limited to the amount, with appropriate terms and conditions, sufficient to allow continuity of the business for 180 days or the grant ceiling, whichever is less, without substituting CDBG-CV funds for available private debt, cash equity or other federal assistance programs.
         3. The Dept. of Housing and Urban Development prohibits the Duplication of Benefits. A duplication of benefit occurs when funding is provided for the same costs paid by other sources, including private insurance, and the total amount received exceeds the total need for those costs. The agreement will require businesses to report all sources of funds received, anticipated and received after implementation of the funded activity. Applicant must provide a list of any and all funding received from any source after March 16, 2020. Each business will be required to complete a duplication of benefits report prior to the disbursement of the final payment.
         4. The following will be required for all businesses as a condition of a CDBG-CV grant award:
            • A copy of the most current bank statement for the business.
            • A copy of the NJ-WR30 for proof of employees, or a tax return for sole proprietorships.
            • Copy of lease, utility bills and real estate tax bill.
            • A listing of all employees as of January 1, 2020, employees hired since then, and their status.
            • A list of additional CARES grants or Small Business Assistance received since January 1, 2020.
            • A Participation Agreement between the Town of Hammonton and the business that will receive funding.
   1. 1. APPLICATION NARRATIVE RESPONSES and INCLUSIONS All applications must include the following narrative responses and requested documentation:
         1. Town of Hammonton CDBG-CV Grant Application – The Grant Application must be completed by the business (see Application Form).
         2. Budget Benefiting businesses should complete the Budget application (see Application Forms).
         3. Project Summary – The benefiting business must provide a summary of their present situation. This should include a brief description of the business, e.g., type of firm, its product or service, and how long they have been in business. Describe how the CDBG funds will be used and reasons why they are needed for the business to be in a position to retain jobs. Explain how COVID-19 has adversely impacted business revenue. Identify specific needs.
         4. Employment Documentation (form is found in the Application Forms section) A listing of all employees as of January 1, 2020, employees hired since then, and their status, must be completed by the benefiting business.
         5. Business Certifications signed by the benefiting business’s authorized signatory.
         6. A Participation Agreement between Town of Hammonton and the business that will receive funding.
   1. 1. APPLICATION REVIEW AND EVALUATION PROCESS The screening and review process for the program is designed to ensure that limited CDBG program funds are awarded to businesses that demonstrate the need for financial assistance and meet the qualifications.

   The criteria noted below will be used to evaluate all applications requesting funding under the Town of Hammonton Small Business Assistance program, as well as determine the appropriate level of financial assistance:

   1. 1. 1. Project Benefit (information to be provided in Project Summary) Three factors will be considered under this criterion:
            1. Project Need – Project need is defined as the inability of the business to maintain sufficient permanent funding to sustain normal operating working capital needs. Describe in sufficient detail the need for the assistance and the specific role of CDBG-CV funding, including any other options which have been pursued.
            2. Financial Feasibility – Determination must be made as to how CDBG-CV funds can address the business’s need to provide adequate working capital in addressing current and future working capital needs, like payroll, operating needs and short-term liabilities.
            3. Commitments for Job Retention – Benefiting businesses must demonstrate they have solid commitments to remain open (for one year) OR reopen and retain or re-employ permanent jobs prior to the grant end date (one year from grant award).
   1. 1. 1. National Objective –Low/Mod Income All grants must meet the CDBG National Objective of Low/Mod Income Benefit for the participating business. The business must document that it will create, retain or re-hire at least one permanent job held by a low- and moderate-income person and that the jobs would be lost without the CDBG assistance. The business must document the income of the low- and moderate-income person through a certification by the business owner that the job is held by a low-moderate income person (based on a one-person household) or the business can presume that the job is held by a low- and moderate-income person if 1) the employee resides in a qualified low-income area or 2) the business is located in a qualified low-income area. Applicant must provide list of employees and their salaries.