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AGR-6988.92 - BYBLOS CAFE - SMALL BUSINESS RELIEF GRANT; COVID-19 PANDEMICf,- g, CITY OF ORANGE SMALL BUSINESS ASSISTANCE PROGRAM BUSINESS RELIEF GRANT AGREEMENT This SMALL BUSINESS ASSISTANCE PROGRAM BUSINESS RELIEF G 2ANT AGREEMENT ("Grant Agreement") is made and entered into as of the i day of _, 2020 ("Effective Date") by and between the CITY OF ORANGE, a municipal corporation City"), and BYBLOS CAFE ("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. Purnose 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 FNE THOUSAND DOLLARS and 00/100($25,000.00),payable in one lump sum, and subject to the terms and conditions contained herein. 3. Recipient Obligations. 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 bv Citv. 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. 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. 6. Governin 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. Integratiori. 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 RECIPIENT" CITY" Byblos Cafe City of Orange 129 W. Chapman Avenue 300 E. Chapman Avenue Orange, CA 92866 Orange, CA 92866-1591 Attn.: Zalfa Mahshi Attn.: Aaron Schulze Telephone: (714) 356-7795 Telephone: (714} 744-2202 E-Mail: E-Mail: 9. Counteraarts. This Grant Agreement may be executed in one or more counterparts, each of which shall be deemed an original,but all of which together sha11 constitute one and the same instrument. Signatures transmitted via facsimile and electronic mail shall 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" BYBLOS CAFE, a California Corporation CITY OF ORANGE,amunicipal corporation By: gy; c% Printed Zalfa M Rick tto, City Manager Title: Owner APPROVED AS TO FORIVT 1' ,\,,, Mary E:Bi g Senior Assistant City Attorn 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 APPLICATION 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 three years 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 5, but not more than 50 employees. 3. The business has gross annual revenues of at least$350,000, but no more than $5 million. 4. The business has experienced at least a 50% 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-incvme 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 and has not received federal funds through the CARES Act (e.g., Payroll Protection Program, EIDL Loan Advance, etc.) 8. The business has had no major code violations in the last twelve mortths. 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 ls the grant? The grant pays 75%of the payroll costs of your low- and moderate-income employees for three months up to a maximum of$10,000. Staff will review payroll documentation to determine the amount of grant funding for each applicant. How do I apply? Complete the Grant Application and Participation Affidavit online at www.citvoforanae.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 questians, please email Aaron Schulze, Senior Administrative Analyst at aschulzeCc 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 1NFORMATION Name of Business yblos C afe Type of Business(e.g.,LLC,corporation,sole proprietorship) Cor oration Address of Business 129 W. Chapman Ave. Business Employer ldentification Number(EIN) Years in Business anuary 1989 of Employees of Employees Meeting Low/Mod Incane City Business License Number 12 Requirement 10 84507 OWNER INFORMATI4N v___ a_..n .___.._________..._._..___.______.____._ OWNER_ .......___ ..,_.___-_ ___ .__. n ..._.._.._. .e.._ r.-- CO-OWNER Name Name del and Zalfa Mahshi Zalfa Mahshi Social•Security Number Contact Phone(area code) Social Security Number Contact Phone(area code) 714-356-7795 Present Address(street,city,state,zip)Present Address(street,city,state,zip) 931 E. Salinas Ct. Oran e, Ca 92869 7931 E. Salinas Ct., Orange, CA 92869 Email Address Email Address zmahshi@gmail.com zmahshiQa gmail.com INCOME REQUIREMENTS e Income Verification Form for details on income requirements for eligible employees. BUSINESS INCOME INFORMATION 2019 INGOME 2020 INCOM E(USE THE SAAAE MONTHS AS 2019) Month#1 Gross Sales 52,895.31 Month#1 Gross Sales 31351.49 Month of April Month ofApril Month#2 Gross SaleS 60,070.75 Month#2 Gross Sales 33,183.19 Month of May Month of May Please provide a brief exp(anation of the adverse economic effects COVID-19 has had on your business: Our business got effected a lot, we just remodeled the restaurant about a two years ago, we took a big dollar amount loan for the remodel a lst on our house we still owe a big balance, so help from the city would help us to keep a flow in the business and be able to pay for everything. REQUIRED DOCUMENTS-SEE DOCUMENT CHECKLIST FOR DQCUMENTS ACCEPTED FOR VERIFlCATION 1. Revenue sta#ements for 2 months in 2020 verifying 50% less revenue than the same months in 2019 2. Revenue statements for the same two months in 2019 3. Annual revenue statement for 2019 4. Payroll records for each qualifying employee 1 Small BusinessAssistance Program Application ACKN WLEDGMENT 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. IM/e 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. IM/e understand that a false statement may disqualify me/us from benefits. Owner cq"?nseP o soo«.nm.................... Date Go-Ou•^o a iss mtaaao s.rom. .............. Date d L G'G 1 5/29/2020 f C G`G, 6/01/2020 2 City of Qrange Small Business Assistance Program Qwner Participant Certification Business Name BYblos Cafe Busine5s Address 129 UVl eest Chapman Ave., Orange, CA 92869 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 5 and 50 employees. Your business is operating during 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 sg0% 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 three years. Your business has experienced a revenue decrease of at least 50% compared to 2019, because of the impact of COVID-19. Yaur business is not a franchise and is not a chain of four or more locations. You have not received federal funds through the CARES Act. 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 alr.eady 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 CERTIFICATIOPIS 1) I certify that my business has been in operation for at least three years. 2) I certify that I currently employ a total of employees. 3) I certify that at least 5Q% 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 50% decrease in revenue for two consecutive months after January 1 st, 2Q20, 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 and did not receive federal funds through the CARES Act. 6) I certify that my business is continuing to operate during the COVID-19 crisis. 7) 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. 8) I certify that my business will comply with all laws and rules applicable to the program, including City, state and federal laws. 9) 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. o Aa w.snam,a,..w.om_. Kar:.33«s o,<e4A 3 e,s a eae 05/29/2020 Business Owner Signature) Date) 4,dwes.am 9,o..om_ f c a Ka,:a9 oa aa:a aae9,«,d:,sss A 06/01/2020 Business Owner Signature) Date) 4 City of Orange Small Business Assistance Program—Document Checklist Document Why we need this Documents accepted Slgned participation Verification that the business empioys between 5 and certification 50 employees,has experienced a loss of re enue,has a commitment to retain employees by participating in this program, employees meet income qualifications and has not already been fully reimbursed by insurance of federal CARES Act funds for wages 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 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 colfected 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 verlfication forms To determine if your employees meet the income fllled out and signed by each requirements for the program C lick Here for Income Verification Form employee) Please combine each employee Income Verification Form, to a PDF for the required attachment#5 Payroll records for each To calculate the grant amount Payroll records or cancelled checks to each employee employee 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 bus/ness llcense you wlll be requlred to obtaln one prlor to fund dlstrlhutlon 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 Byblos Cafe, hereby certifies each of the following statements: 1.The 90-day compliance period for this Agreement began on July 16, 2020, and ended on October 16, 2020. 2. During the compliance period, the business continued to operate legally. 3. Grant #unds were used in accordance with the Small Business Assistance Program. DATED: By: Title: