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AGR-6988.44 - D3 SALON AND SPA DBA BUSHIRE SALON AND SPA - SMALL BUSINESS RELIEF GRANT; COVID-19 PANDEMICf C 88. 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 o+ day of 2020 ("Effective Date") by and between the CITY OF ORANGE, a municipal corporation City"), and D3 SALON AND SPA doing business as BUSHIRE SALON AND SPA 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 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 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 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 DOLLARS and 00/100($25,000.00),payable in one lump sum, and subject to the terms and conditions contained herein. 3. Recipient Obli ations. A. Recipient acknowledges the certifications and promises contained in the Small Business Assistance Program Participant Certification, attached as Exhibit "A" and incorporated herein, and agrees to abide by them during the term of this Grant Agreement. B. Recipient shall remain in business not less than ninety(90)days after receipt 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 Grant Agreement. 4. Review of Compliance Documentation by City. After review of the Certification of Compliance letter 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. ReUavment 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 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) days of deposit in the U.S. Mail, whichever is earlier. Notices sent by e- mail shall be deemed received on the date of the e-mail transmission. 2 L:K:IPIENT" CITY" D3 Salon d Spa City of Orange 1108 E t f atella Avenue C6 300 E. Chapman Avenue Orange, Cn,92867 Orange, CA 92866-1591 Attn.: ]l;'ary Decker Attn.: Aaron Schulze ' Telephonc_ (714) 61,4-4316 Telephone: (714) 744-2202 E-Mail: !iil i ry@sillymunk.com E-Mail: aschulze@cityoforange.org CounterAarts. This Grant Agreement may be executed in one or more counter;• rt, each of which shall be deemed an original, but all of which together shall constitute one and ;e same instrument. Signatures transmitted via facsimile and electronic mail shall have the samc cl'liect as original signatures. 1. tiyITNESS of this Grant Agreement,the parties have entered into this Grant Agreement as of th .c7r and day first above written. CIPIENT" CITY" f D3 SAI.nN,AND SPA, CITY OF ORANGE, a municipal corporation a Califo•i a Corporation By; -- gy, _ Printed.nte: I=I.ilary Decker ick o, City Manager Tit1e: 0• tic APPROVED AS TO FORM: Mary E. Bi ning Senior Assistant City Atto'rne , 3 EXHIBIT "A" CITY OF ORANGE SMALL BUSINESS ASSISTANCE PROGRAM BUSINESS RELIEF GRANT PARTICIPANT CERTIFICATION Beneath this sheet] 4 City of City of Orange Small Business Assistance Program BUSINESS RELIEF GRAIVT APPLICATIOIV Applications accepted beginning June 3, 2020 The purpose of this g rant 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 appl t Complete the Grant Application and Participation Cert'rfication online at www.cityoforanae.org 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 citvoforanqe.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 a. ... BUStNES-'INFORM'ATI(N ,:.. - lame o(Business D3 SALON AND SPA DBA BUSHIRE SALON AND SPA Type ol Busin ss(e.g.;LLC,corpora;fon,solo proprietorship} CORP Addr—ess ot Businass i1108 EAST K,ATELLA AVE C6 ORANGE CA 92867 Business Employer ldentification Nun ber(EIN} Years in Business x r . 2-1 Z 3 ot Employees k o(Employses Meeting Law.+Mod Income Ciiy Business License Number 2 Requirement 186337 I :: - 01NNER: II IFORMATIQN. - ., .- t. . . OWNER C0-0WNER Narne Name iHILARY DECKER C„hO Y'I j (.C r Sociai Security Number Contact Phone{area ca ie) Social Security Number Contact Phone(area codej i,,..k.*4,,-lz.-c g 7146144316 a H-- q7 -- c{1 IN-z;' -S"1 a I Present Address(streat,city,state,zip)Present Address(sireet,city,state, zip} 2133 EAST PARKSIDE AVE ORANGE CA 92867 2 3 ., -r PCS C..P C. r^. (G•; Emai Address Email Address IHILARY@SIL.LYMUNK.COM C:'l r r e; tl rn.,y K r=BUSiNESS INCOME 1NFORMATION 2019 lNCOh E - 20201NCOM E(USE THE SAME MOt THS AS 2Q19) Month#1 Gross Sales 8a_oo Month#1 Gross Sakes 979.00 Month of APRIL M nth ofAPRIL jMonth #2 Ciross Sales 32701.00 Month #2 Gross Sales 1161.00 Month of NIAY Month of MAY Rlease prc vide a brief expl anation-of the adverse economic effects COVID-19 has had an your business: Ul, are a hair salon and we were 5hut down due to state orders. i RE UIRE[) DOCUMENTS—SEE DOCUMENT CHECKLIST FOR DOCUMENTS ACCEPTED FOR VERIFICATIQN 1. Revenu e statements far 2 months in 2020 ve ifying 25% less revenue than the same months in 2019 2. Revenu e statements for the same two months in 2019 3. Annual revenue statement for 2019 4. Payrotl reports documenting the number of employees 1 Sm ll BusinessAssistance Program Application ACKNOWLEDGMENTAND_:CERTIFICATIOt = _ Acknowledgement: IMIe understand that this grant is being provided by the City of Orange based solefy upon tt e information that i/we have provided in this application. I/We also cert'rfy that there are no outstanding tax 4iens ar 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 krlow(edge as of the date set forth opposite my/our signature(s) in this application and acknowledge j my/our understanding that any intentianal or negligent misrepresentation{s) of the information contained in this j applicatian may result in civil liability and/or criminal penalties. By signin below, Ilwe certify that the above statements are true and correct ta the best of my/our knovuledge, I/We und rstand that a false statement may disqualify me/us from benefits. p vnor,'!'..!,,.,.«,..,e . Date Co•Owner Signaiure Date Licl c G.c.E , 6/03/2020 Wi- j-ZO n., - r _ ..r=- .. . 2 City of Orange Small eusiness Assistance Program 4wner Participant Certificafion Busir ess Name d3 salon and spa dba bushire salon and spa Busit'iess AddresS 1108 east katella ave orange ca 92867 ln order to participate in the City of Orange Small Business Assistance Pro.gram ("Program") and receive a grant, the City af Orange ("City") requires that you ("Recipient") and your staff, if applicable; certify the following: You own a smafl business that employs between 1 and 50 employees. Your business is fegally operating during the COV1D-19 crisis. Your business has been in aperation in Orange for at least one year. Your business has experienced a revenue decrease of af least 25% compared to 2019, because af the impact af C VlD-19. Your business is not a franchise and is not a chain of four or more locations. You eommit to continue operating for a minimum of three montt s after receipt of the gr;nt funds. Notwithstanding any other rights af 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 wa ranty made by the Recipient in this Certificatian or in any document or apF lication submitted in connection with this Certification or the Program shall prvve false or misle iding, or if, in the sole judgment of the City, the conduct of the Recipient is such that the intere;;ts of the City have been or are likely to be impaired or prejudiced, the City shall thereupon have i:he 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 ,Iready suffered due to a breach by the Recipient. Any such action by the City shall not give rise tc any cause af actian for damages against the City. 3 CERTIFICATIONS 4) I certify that my business has been in operatian for at least one year. 1 certify that I currently employ a tota! of 2 emplqyees. 3) I certify that as a resuit of COVID-19, my business experiencecf at least a 25% decrease in revenue for two consecutive months after January 1 st, 2020, compared to 1he average revenue for the same two-month period in calendar year 2Qi 9 (or average monthly revenue based on tatal 20f 9 sales}. I certify that my business is continuing to operate during the COVID-19 crisis. i) I certify that my business will continue to operate for a three-month perioci commencing on the date ofi receiving the grant funds. E) I certify that my business will comply with all laws and rules applicable ta the program, including City, state and federal laws. i) I certify that I have nat misrepresented the eligibility of my business tor the Program. By signing below, I certify that the above statements are irue and correct to the best of m!knowledge and belief. I understand that willful or fraudulent submission af a materialiy false statement in connection with this certificatian may disqualify my business from eligibility for the Program benefits and may subject my business or myself to criminal charges. TFuis 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 o the State of C tlifornia and the laws af the United States. l:cl.a.dP.c.er2, I 06/03/2020 E3usiness Owner Signature Date} 3 z E3usiness Qwner Signature) Date) 4 City of Orange Small Business Assistance Program—Document Checklist Documerrt 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 following 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 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 20i 9 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(aIl pages),or Federal 990 Payroll report showing To determine eligibility for the grant Payroll records. number of employees Proof of Orange location To verifythat 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 not have a City buslness Ilcense you w111 be requlred to obtaln one prfor to fund dlstrlbutlon 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 ("AgreemenY'), and constitutes the Final Compliance Report. The undersigned authorized representative of D3 Salon and Spa, doing business as Bushire Salon and Spa, hereby certifies each of the following statements: 1.The 90-day compliance period for this Agreement began on July 7, 2020, and ended on October 7, 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: