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AGR-6980.06 - EDUARDO CORREA DDS - SMALL BUSINESS ASSISTANCE GRANT; COVID-19 PANDEMICC P-lo'O,olo CITY OF ORANGE SMALL BUSINESS ASSISTANCE PROGRAM GRANT AGREEMENT This SMALL BUSINESS ASSISTANCE PROGRAM GRANT AGREEMENT Grant Agreement") is made and entered into as of the 8 day of em er 2020 ("Effective Date") by and between .the CITY OF ORANGE, a municipal corporation ("City"), and EDUARDO CORREA, DDS ("Recipient"), a California corporation with reference to the following: RECITALS WHEREAS, the novel coronavirus (COVID-19) has become a world-wide pandemic, in which the federal, state, county and city governments, including the City of Orange, have all declared a state of emergency; and WHEREAS, the efforts to minimize the spread of COVID-19 have, among other things, created for many Orange businesses the loss of income as a result of a significant reduction of hours and operations,hindering the ability to keep up with payrolls, rents,mortgages,utility bills, business operations and other related expenses; and WHEREAS, the City has determined that encouraging and promoting stability among commercial businesses and their employees is conducive to the public health and welfare of the City; and WHEREAS, the Community Development Block Grant program has made available to the City,funds to be used for certain specific purposes related to small businesses and the retention of their low- and moderate-income employees; and WHEREAS, the City wishes to grant to Recipient, and Recipient wishes to receive said grant funds. NOW, THEREFORE, both the City and Recipient, in consideration of the mutual promises, covenants and conditions contained herein and the substantial public benefits to be derived therefrom, do hereby agree as follows: AGREEMENT 1. Purpose of Grant. This Small Business Assistance Program Grant ("Grant") is awarded by the City to Recipient for the sole purpose of retaining low- and moderate-income employees, defined as employees earning < 80% of the HUD Area Median Income during the economic emergency caused by the COVID-19 pandemic. 2. Total Amount of Grant. The Grant awarded to Recipient shall be in the amount of TWENTY THOUSAND DOLLARS and 00/100 ($20,000.00), payable in one lump sum, and subject to the terms and conditions contained herein. 3. Recipient Oblisations. A. Recipient acknowledges the certifications and promises contained in the Small Business Assistance Program Participant Certification, attached as Exhibit "A" and incorporated herein, including acknowledgement of the federal prohibition on the receipt of benefits, including insurance payments, totaling more than the documented losses for the applicable period of time and the promise to repay any such excess assistance, and agrees to abide by them during the term of this Grant Agreement. B. Recipient shall retain those employees designated in the Grant Application approval as low- and moderate-income for a period not less than ninety (90) days after receipt of the Grant at the same or better rate of pay and with the same or better benefits as those existing as of the date of this Grant Agreement. C. Recipient shall maintain payroll records showing the date, designated employee's name, rate of pay, and benefits during the term of this Grant Agreement. At the expiration of ninety (90) days after receipt of the Grant, Recipient shall submit to the City the Certification of Compliance letter that is attached hereto as Exhibit "B" and provide the required payroll records and any additional documentation requested by the City. City shall review said records for compliance with the terms and conditions of this Grant Agreement. 4. Review of Pavroll Records bv City. After review of the Certification of Compliance letter, the payroll records and any other documentation submitted by Recipient, City will either: A. Approve said records, in which case Recipient will not incur any obligation to repay the Grant and this Grant Agreement will terminate; or B. Disapprove said records, in which case Recipient will be obligated to repay to City those amounts determined by City to have been not used for the intended purpose of this Grant Agreement. 5. Repayment of Grant. If Recipient is required to repay all or part of the Grant, said repayment to City shall be made according to a schedule as determined by the City. 6. Governing Law and Venue. This Grant Agreement shall be construed in accordance with and governed by the laws of the State of California and Recipient agrees to submit to the jurisdiction of California courts. Venue for any dispute arising under this Grant Agreement shall be in Orange County, California. 7. Inte ration. This Grant Agreement constitutes the entire agreement of the parties. No other agreement, oral or written, pertaining to the duties and obligations of each party under 2 thss Grant A,grcomec t s Za,Se €Any forc or affect wniess it is in writtng :snd signed y bath parfie. S. atice. Except as csthexti ise pro ided h re ry ali tu tices requireci under tl is rautlgreementshllbci writitr x d delivc,ecf ersona ly, by mait, or y first cless iJ.S, mAi1, c sEage are d, to e cl ar y at t e address istcd beac u. Ei her arty m ty cha ge the not ce a€idress by r atsf ri g the o er party in w iting. I+IoUices shal be dcer ed eoeivnd 1pon rcceipt o same or tivit i t i,ee)dttys af depasFt in E ie U.S.ail,wluchever s eat i r. 3.ntic s sent yrtilsiallbedeenedreceivecfcatiecateafe-x ai ra-ission, KS<[:1.J1{11:w1V L r Ll i'TRj f ' i C 1 Eduarda Ct a,7DS City oi'C tge i44 E. C pprnan Ave. 304 S, Chapman venuc Orange,C,A,928Gfi C?ralige,C:A ZR66-Sgl Ati t.:uaxdc orrc Aftn,:Aacon ck ulzc etephone:323-445-4574 Telc hon:'7I-74-2€}2 E-Vlail:ca orrea cis c nail.c r Mai2:ase lze,c:ityckforange.a rg 9, C en parts, ThiA Grant Agrecment r ay be executcd ir anc or ioA . . . counter Ar s, eacf of«hic i sk tl be cfeesn d an original,Uut al af wliich gether sha 1 corte atuto ane at the sanie ins u t er. 51 nAh1CC3 ii'8[liitC viA aCsii]ilB S![C10CtXt n3C n1Ai ShA3 lAV tlte s m.s ef eet as ari nai sag ai es. i 1 WI,T.S o t lis€"nanE Agre me t,the pa es hav entci cci in.tnthzs CrrantAg menk as c}f t}e year an i day fii st a ove wri#en. 12.GCIP,1\"'" ac e EDUARBQ CORRBAf BDS> C.TY OF{)AIV('rE,a m nici at 1 cor or fion A C&Sf'Il1A t'.41'Itl'AfiQli k • ame:Edu rda Carrea ck(3ttQ,Cily ISrianagcrTt1c 4wner y.,:;V'.:`; :.. AP tOV r S'O FQItIV: i::`':i. _, s Frintt t a re: i 1a: M ury L.Bin ng enior 1 ssis a it G ty Attorn y 3 EXHIBIT A" CITY OF ORANGE SMALL BUSINESS ASSISTANCE PROGRAM PARTICIPANT CERTIFICATION Beneath this sheet] 4 C y of City of Orange Small Business Assistance Program APPLICATIOIV PACKET Applications accepted beginning May 26, 2020 The purpose of this g rant program is to assist small business owners in Orange that have been adversely affected by COVID-19 to retain jobs that are held by their low and moderate-income workers. Funds will be provided to assist with payroll costs for qualified small businesses that pledge to keep their low and moderate-income employees employed for three months after receiving the grant. Who can qualify? 1. The business is physically located in Orange, has been in the City for a minimum of one year and is not a franchise or part of a chain of more than three locations. 2. The business is a for profit business with at least 2, but not more than 50 employees. 3. The business has gross annual revenues of at least $100,000, but no more than $5 million. 4. The business has experienced at least a 25% reduction in revenue due to COVID-19 and is able to provide documentation showing the loss in revenue. 5. 50% of employees of the business meet low- and moderate-income requirement of <_80% of the HUD Area Median Income. 6. The business continues to operate legally during the COVID-19 crisis and the designated employees are actively working at the business. 7. The business has not received full coverage of employee payroll from an insurance provider or any other entity. 8. The business has had no major code violations in the last twelve months. 9. Adult businesses, massage parlors, and largely cash-based businesses are not eligible. 10. Individuals that own or have interest in more than one business may be limited to one grant total i.e., if a person has ownership interest in three businesses, only one of those businesses may receive a grant under this program). How much is the grant? The grant is to be used for payroll costs for your low- and moderate-income employees for three months up to a maximum of $20,000. How do I apply? Complete the Grant Application online at www.citvoforanae.ora and attach all the required information on the Document Checklist. You will receive an email advising you that your application has been received. An incomplete application will delay the review of your application. Listed documentation is a minimum requirement and staff may request additional documentation to determine eligibility. If you have any questions, please email Aaron Schulze, Senior Administrative Analyst at aschulzeLa citvoforanqe.orq, or call (714) 744-2202. Funding is limited and will be disbursed on a first come, first served basis. Smal) Business Assistance Program Application BUSINESS INFORMATIOOV ' , Name of Business Eduardo Correa, DDS Type of Business(e.g.,LLC,corporation,sole proprietorship) Corp Address of Business 44 E Chapman Ave Business Employer ldentification Number(EIN) Years in Business 10 of Employees of Employees Meeting Low/Mod incane City Business License Number O Requirement 6 143395 OWNER INFORMATION OWNER CO-OWNER Name Name Eduardo Correa Social Security Number Contact Phone(area code) Social Security Number Contact Phone(area code) 234454574 Present Address(sVeet,city,state,zip)Present Address(sVeet,city,state,zip) 1409 Kensington Dr Email Address Email Address ecorreadds@Gmail.com INCOME REQUIREMENTS See Income Verification Form for details on income requirements for eligible employees. u BUSINESS INCOME INFORMATION 2019 INCOME 2020 INCOME(USE THE SAME MONTHS AS 2019) Month#1 Gross Sales 211 18 Month #1 Gross Sales 65052 Month of April Month ofApril Month#2 Gross Sales 206278 Month#2 Gross Sales 76459 Month of May Month of May Please p'rovide a brief explanation of the adverse economic effects COVID-19 has had on your business: Our dental office had to shut down for over 2 months, and as such we saw a dramatic loss for several months due to a lack of patient care. REQUIRED DOCUMENTS—SEE DOCUMENT CHECKLIST FOR DOCUMENTS ACCEPTED FOR VERIFICATION 1. Revenue statements for 2 months in 2020 verifying 25% less revenue than the same months in 2019 2. Revenue statements for the same two months in 2019 2. Annual revenue statement for 2019 3. Payroll records for each qualifying employee 4. Documentation for any other CARES Act funds that you have received (PPP, EIDL...etc.) 2 Srv all BusinessAssistance Program Application ACKNOWLEDGMENT AND CERTIFICATION Acknowledgement: I/We understand that this grant is being provided by the City of Orange based solely upon the information that I/we have provided in this application. I/We also cert'rfy that there are no outstanding tax liens or legal judgements against the business. Certification: I/We certify that the information provided in this application is true and complete to the best of my/our knowledge as of the date set forth opposite my/our signature(s) in this application and acknowledge my/our understanding that any intentional or negligent misrepresentation(s) of the information contained in this application may result in civil liability and/or criminal penalties. By signing below, I/we certify that the above statements are true and correct to the best of my/our knowledge. I/We understand that a false statement may disqualify me/us from benefits. Owners=,;:e sa.==m --- Date Co-0wner.Signature Date. . G!ca,lo o t KoY:a,3,>o,onao,=e<<de 10/21/2020 3 City of Orange Small Business Assistance Program Owner Participant Certification Business Name Eduardo Correa, DDS BuSineSS AddreSS 44 E Chapman Ave Orange CA 92866 In order to participate in the City of Orange Small Business Assistance Program ("Program") and receive a grant, the City of Orange ("City") requires that you ("Recipient") and your staff, if applicable, certify the following: You own a small business that employs between 2 and 50 employees. Your business is operating durin.g the COVID-19 crisis and your qualified employees are . working at the business. 50% of your employees who are holding the jobs retained, make less than the low- and moderate-income requirement of s80% of the H U D Area Median Income (see Income Verification Form for details). Your business has been in operation in Orange for at least one year. Your business has experienced a revenue decrease of at least 25% compared to 2019, because of the impact of COVID-19. Your business is not a franchise and is not a chain of four or more locations. You commit to continue operating and keep your low and moderate-income employees employed at your business for a minimum of three months after receipt of the grant funds. Notwithstanding any other rights of the City under other Sections of this Certification or applicable law, if the Recipient violates any of the terms, covenants or provisions of the Certification, or if any representation or warranty made by the Recipient in this Certification or in any document or application submitted in connection with this Certification or the Program shall prove false or misleading, or if, in the sole judgment of the City, the conduct of the Recipient is such that the interests of the City have been or are likely to be impaired or prejudiced, the City shall thereupon have the right to terminate any grant or withhold payments due under the Program and/or demand and obtain the return of payments already made which are equal to the damages the City may have already suffered due to a breach by the Recipient. Any such action by the City shall n.ot give rise to any cause of action for damages against the City. 3 CERTIFICATIONS 1) I certify that my business has been in operation for at least one year in the City of Orange. 2) I certify that I currently employ a total of 10 employees. 3) I certify that at least 50% of my current employees make less than the low- and moderate-income requirement of s80% of the HUD Area Median Income. 4) I certify that as a result of COVID-19, my business experienced at least a 25% decrease in revenue for two consecutive months after January 1 st, 2020, compared to the average revenue for the same two-month period in calendar year 2019 (or average monthly revenue based on total 2019 sales). 5) I certify that my business did not receive full coverage of employee payroll from an insurance provider or any other entity. 6) I certify that the total CARES Act assistance (PPP, EIDL...etc.) that my business has received is $170,353.96 7) I certify that my business is continuing to operate during the COVID-19 crisis. 8) I certify that my business will retain and pay the listed employees their salary for a three-month period commencing on the date of receiving their reimbursement and the employee is working at the business. 9) I certify that my business will comply with all laws and rules applicable to the program, including City, state and federal laws. 10) I certify that I have not misrepresented the eligibility of my businessfor the Program. By signing below, I certify that the above statements are true and correct to the best of my knowledge and belief. I understand that willful or fraudulent submission of a materially false statement in connection with this certification may disqualify my business from eligibility for the Program benefits and may subject my business or myself to criminal charges. This certification shall be deemed executed in the City of Orange and State of California and shall be governed and construed in accordance with the laws of the State of California and the laws of the United States. e=;a oa,=oam,naeoe o em........._.. G'`u`do o ce2 10/21/2020 Business Owner Signature) Date) Business Owner Signature) Date) 4 City of Orange Small Business Assistance Program—Document Checklist Document Why we need this Documents accepted Signed particlpation Verification that the business employs between 2 and certification 50 employees,has experienced a loss of revenue,has a commitment to retain employees by participating in this program, employees meet income qualifications and has not already been fully reimbursed by insurance for wages. Revenue statements for pocumentation of revenue folfowing COVID-19 impact One or more of the following for the entire impacted period:point-of- two consecutive months in sales reports, sales reports(demonstrating fees collected or earned 2020 income), bank statements, quarterly sales tax filings, or CPA- certified profit&loss statements for two consecutive months in 2020 Revenue statements for Comparison of typical operating revenue to verify One or more of the following for the same two months in 2019: the same two consecutive loss of revenue as a result of COVID-19 point-of-sales reports,sales reports(demonstrating fees collected months in 2019 or earned income),bank statements,quarterly sales tax filings,or CPA-certified profit&loss statements for two consecutive months in 2019 Annual revenue statements Comparison of typical operating revenue to verify One or more of the following for total 2019 sales:point-of-sales for 2019 loss of revenue as a result of COVID-19 reports,sales reports (demonstrating fees collected or earned income), bank statements,quarterly sales tax filings, 2019 tax returns, CPA-certified profit & loss statements, 2019 Tax Returns(all pages),or Federal 990 Income verification forms • To determine if your employees meet the income filled out and signed by each requirements for the program Click Here for Income Verification Form employee) Payroll records for each To verify employment Payroll records or cancelled checks to each employee employee Proof of Orange location To verify that the business is located in the City City of Orange business license number on application,signed federal tax forms;signed copy of lease agreement,or 3 months of operational bills If you do nof have a Clty buslnessl/cense you w!!!be requlred to obfaln one prlor to fund dlstribut/on 5 EXHIBIT "B" CERTIFICATION OF COMPLIANCE Beneath this sheet] 5 Date: Lisa Tamburelli Community Services Department City of Orange 300 East Chapman Avenue Orange, California 92866 Re: Certification of Compliance Pursuant to City of Orange Small Business Assistance Program Grant Agreement Dear Ms. Tamburelli: This Certification is submitted to the City of Ora.nge in accordance with the Small Business Assistance Program Grant Agreement ("Agreement");and constitutes the Final Compliance Report. The undersigned authorized representative(s) of EDUARDO CORREA, DDS, hereby certifies(y) each of the following statements: 1.The 90-day compliance period for this Agreement began on November 6, 2020, and ended on January 6, 2021. 2. During the compliance period, the business continued to operate legally. 3. During the compliance period, the business continued to employ all of its Low- and Moderate-Income (LMI) employees. 4. Both prior to and during the compliance period, the business did not receive federal, state or local assistance or insurance payments totaling more than the documented losses for the applicable period of time. 5. The enclosed payroll documentation is accurate and reflects the continued employment of the LMI employees. Dated: Signature: By: Eduardo Correa, DDS Title: Owner