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AGR-6988.11 - J S BLACK BELT CORPORATION - SMALL BUSINESS RELIEF GRANT; COVID-19 PANDEMICA-8 11 CITY OF ORANGE SMALL BUSINESS ASSISTANCE PROGRAM BUSINESS RELIEF GRANT AGREEMENT This SMALL BUSINESS ASSISTANCE PROGRAM BUSINESS RELIEF GRANT AGREEMENT ("Grant Agreement") is made and entered into as of the r day of' , 2020 ("Effective Date") by and between the CITY OF ORANGE, a municipal corpotation City"), and J.S. BLACK BELT CORPORATION, doing business as J.S. BLACK BELT ACADEMY("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 WI3EREAS, 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 Coronavirus Aid,Relief, and Economic Security Act has made available to the City, funds to be used for certain specific purposes related to small businesses; and WI3EREAS, 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 Business Relief Grant Grant") is awarded by the City to Recipient for the sole purpose of providing relief 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 FIVE THOUSAND and 00/100 ($25,000.00),payable in one lump sum, and subject to the terms and conditions contained herein. i 3. Recipient Obli ations. i A. Recipient acknowledges the certi cations and promises contained in the i Small Business Assistance Program Participant Certification, atta.ched as Exhibit "A" and i incorporated herein,and agrees to abide by them during the tenn of this Grant Agreement. i B. Recipient sha.11 remain in business not less than ninety(90)days after receipt I of the Grant. C. Recipient shall submit to the City the Certification of Compliance letter that is attached hereto as Exhibit"B"and provide any additional documentation requested by the City. City shall review said records for compliance with the terms and conditions of this Crrant Agreement. I i 4. Review of Comnliance Documentation bv Citv. After review of the Certi cation of Compliance letter and any other documentation submitted b Recipient, City will either: i A. Approve said records, in which case Recipient will not incur any obligation to repay the Grrant and this Grant Agreement will terminate; orI i 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. Repavment 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. i 6. Governins Law and Venue. T'his Grant Agreement shall be construed in I accordance with and governed by the laws of the Sta,te of California and Recipient agrees to submit i 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 this Grant Agreement shall be of any force or effect unless it is in writing and signed by both parties. 8. Notice. Except as otherwise provided herein, all notices required under this Grant Agreement shall be in writing and delivered personally, by e-mail, or.by first class U.S. mail, postage prepaid, to each party at the address listed below. Either party may change the notice address by notifying the other party in writing. Notices shall be deemed received upon receipt of same or within three(3) da.ys of deposit in the U.S.Mail, whichever is ea.rlier. Notices sent by e- mail shall be deemed received on the date of the e-mail transmission. i 2 j i RECII'IENT"CITY" J.S. Black Belt Corporation City of Orange 665 N. Tustin St. Ste. Q 300 E. Chapman Avenue Orange, CA 92867 Orange, CA 92866-1591 Attn.: Jong Seon Chae Attn.: Aaron Schulze Telephone: (714)393-6388 Telephone: (714) 744-2202 E-Mail:jsblackbelt@live.com E-Mail: aschulze@cityoforange.org 9. Counterparts. This Grant Agreement may be executed in one or more counterparts, each of which shall be deemed an origina,l, but all of which together shall constitute one and the same instrument. Si,matures transmitted via facsimile and electronic mail sha.11 have the same effect as original signatures. IN WITNESS of this Grant Agreement,the parties have entered into this Grant Agreement as of the year and day first above written. RECIPIENT"CITY" J.S. BLACK BELT CORPORATION, CITY OF ORANGE, a municipal corporation a California Corporation BY= BY; Printed Name: Jon Seon Chae Otto, City Manager Title: Owner C O APPROVED AS TO FORM: i I 1., Mary E. nning Senior Assista.nt City Attom y I ii i 3 I EXHIBIT A" CITY OF ORANGE SMALL BUSINESS ASSISTANCE PROGRAM BUSINESS RELIEF GRANT PARTICIPANT CERTIFICATION Beneath this sheet] 4 Citiy of City of Orange Small Business Assistance Program BUSINESS RELIEF GRANT APPLICATION Applications accepted beginning June 3, 2020 The purpose of this grant program is to assist small business owners in Orange that have been adversely affected by COVID-19. Funds will be provided to assist with payroll, capital, equipment, and operating costs to allow businesses to continue to operate for at least 90 days. 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 Iocations. 2. The business is a for profit business with at least 1, 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. The business continues to operate legally during the COVID-19 crisis. 6. The business has had no major code violations in the last twelve months. 7. Adult businesses, massage parlors, and largely cash-based businesses are not eligible. 8. 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). 9. Businesses that have not received funding through the CARES Act, such as Payroll Protection Program loans,will be given first priority. How much is the grant? The grant is up to a maximum of$25,000. How do I apply? Complete the Grant Application and Participation Cert'rfication online at www.cityoforange.orq 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 aschulzeC«citvoforanae.ora, or call (714) 744-2202. Funding is limited and will be disbursed on a first come, first served basis. Small Business Assistance Program Application BUSINESS INF'ORMAl10N Name of Business S. BLACK BELTACADEMY Type of Business(e.g.,LLC,corporation,sole proprietorship) ORPORATION Address of Business 65 N. TUSTIN ST. SUITE Q ORANGE CA 92867 Business Employer ldentification Number(EIN) Years in Business 9YEARS of Employees of Employees Meeting LowMlod Income City Business License Number 2 Requirement 154300 OWNER INFORMATION r _ _____---__.____ .__ _. ._______ wa____..___-_-_-_---___,._ _..____ ..___a._.____.n , ______. __ _ _ ,_. .__ --- ----__ _.____.._ OWNER CO-OWNER Name Name ONG SEON CHAE S iai Security Number Contact Phone{area code) Socfal Security Number Contact Phone(area code) 714-393-6388 Present Address(street,city,state,zip)Present Address(street,city,state,zip) 06 MONTE VISTA IRVENE CA 92602 Email Address Email Address sbI ackbeltCc l ive.co m BUSINESS INCQME INFORMATION 2019 IPICOME 2020 INCOM E(USE THE SAME MONTHS AS 2019) Month#1 Gross Sales Month#1 Gross Sales 5,376 Month of APRIL Month of ApR Month#2 Gross Sales 13.945 Month#2 Gross Sales 4,994 Month of MAY Month of MAY Please provide a brief explanation of the adverse economic effects COVID-19 has had on your business: ur business is Martial Arts School (Tae Kwon do School) , ur business has been closed temporally since March 17 2020 temporally by Government order due to COVID-19 are three months behind in rent. REQUIRED DOCUMENTS—SEE DOCUMENT CHECKLIST FOR DOCUMENTS ACCEPTED FOR VERIFlCATION 1. Revenue statements for 2 months in 2020 verifying 25% less revenue than the same months in 2019 2. Revenue staterrients for the same two months in 2019 3. Annual revenue statement for 2019 4. Payroll reports documerrting the number of employees 1 Small BusinessAssistance Program Application ACKNOWLEDGMENT AND CERTIFICATION Acknowledgement: INVe 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. Owner 9 aa;!!ap„o,oao.om..-__ Date Co-Owner Signature Date Z 6/05/2020 2 3[ c5 e...,,.,. 2 City of Orange Small Business Assistance Program Owner Participant Certification Business Name 1•S. BLACK BELTCORPORAl10N Business Address 665 N.TUSTIN ST. SUITE Q ORANGE CA 92867 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 1 and 50 employees. Your business is legally operating during the COVID-19 crisis. 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 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 not give rise to any cause of action for damages against the City. 3 CERTIFICATI4NS 1) I certify that my business has been in operation for at least one year. 2) I certify that I currently employ a total of 2 employees. 3) 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 rnonthly revenue based on total 2019 sales). 4) I certify that my business is continuing to operate during the COVID-19 crisis. 5) I certify that .my business will continue to operate for a three-month period commencing on the date of receiving the grant funds. 6) I certify that my business will comply with all laws and rules applicable to the program, including City, state and federal laws. 7) I certify that I have not misrepresented the eligibility of my business for 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. es,a aa,a=..m,es o s om t-+" 'h e, _° °°° r ° ° a 06/05/2020 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 participation Verification that the business employs between 1 and certification 50 employees and has experienced a loss of revenue. Revenue statements for pocumentation of revenue foilowing COVID-19 impact One or more of the fallowing for the entire impacted period:point-of- two consecutive months in sales reports,sales reports(demonstrating fees collected or earned 2020 income), bank statements, quarteriy 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 fol(owing 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 Camparison 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 Payroll report showing To determine eligibility for the grant Payroll records. number of employees 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 f you do not have a City businesslicense you witl b regulred to obtaln one prlor to fund dlstributlon 5 EXHIBIT "B" CERTIFICATION OF COMPLIANCE Beneath this sheet] 5 Date: Lisa Tamburelli City of Orange 230 E. Chapman Ave. Orange, California 92866 Re: Certification of Compliance Pursuant to City of Orange Small Business Assistance Program Business Relief Grant Agreement Dear Ms. Tamburelli, This Certification is submitted to the City of Orange in accordance with the Small Business Assistance Program Business Relief Grant Agreement ("Agreement"), and constitutes the Final Compliance Report. The undersigned authorized representative of J. S. Black Belt Corporation, hereby certifies each of the following statements: 1.The 90-day compliance period for this Agreement began on June 23, 2020, and ended on September 23, 2020. 2. During the compliance period, the business continued to operate legally. 3. Grant funds were used in accordance with the Small Business Assistance Program. DATED: By: Title: