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A RESOLUTI IIN OF Tiii E II . I TTI1 COUNTY h OA I OF SUPERVISORS ADOPTING TE E
GUIDELINES FOR THE ' IIIC1110ENTERPRISl, TEC cl'NICAL ASSISTANCE SERVICES Pk GI' M
WHEREAS:
A. The County of Butte entered into an agreement with the Department of Housing and Community
Development on July 21, 2015 to provide Microenterprise Technical Assistance Services under funding
from the Community Development Block Grant Program; and
B. Per Community Development Block Grant Program requirements,jurisdictions operating Microenterprise
Technical Assistance Services Programs must have Guidelines approved by the governing board; and
C. The Guidelines for the Microenterprise Technical Assistance Services Program establishes the policies
and procedures for the administration of the program funded under the State Community Development
'""lock Grant Program.
IT IS NOW THEREFORE ESOLVE h THAT the Board of Supervisors of the County of tune does hereby
adopt Exhibit A entitled, "Guidelines for Microenterprise Technical Assistance Services Program".
PASSED AND ADOPTE I at a regular meeting of the Butte County Board of Supervisors this 291h day of
September 2015 by the following vote:
AYES: Supervisors Connelly, Wahl, Kirk, Lambert, and Chair Teeter
NOES: None
ABSENT: None „,..............
NOT VOTING: None ''''''),
Supervisor Teeter, Chair
I utte County Board of Supervisors
ATTEST:
, ....
PAUL HAHN href Administrative-Officer
, a,..
and Clerk of t i,.;Board o . 'Pervisors
BY:
(::-:-
EXHIBIT A
Butte County
•CALIFORNIA •
Guidelines
For
Microenterprise Technical
Assistance Services Program
Funded By
County of Butte
With
Community Development Block Grant
Adopted: September 29, 2015
Adopted: 9/29/2015
TABLE OF CONTENTS
1. INTRODUCTION 1
2. MICROENTERPRISE TECHNICAL ASSISTANCE (TA) SERVICES
PROGRAM OVERVIEW
1. Program Administration 1
2. Program Service Area 1
3. Funding Source for TA Program Services 1
3. CDBG PROGRAM REQUIREMENTS
1. Eligible Program Applicants 2
2. Ineligible Program Applicants 2
3. Eligible TA Program Costs 2
4. Ineligible TA Program Costs 2
5. Timeframe for Receiving TA Program Services 3
6. Meeting CDBG Microenterprise Definition Requirement 3
7. Meeting CDBG National Objective Requirement 3
8. Other CDBG Federal Laws and Regulations 4
4. APPLICATION PROCESSING FOR TA PROGRAM SERVICES
1. Program Marketing and Outreach 4
2. Equal Opportunity Compliance 4
3. Program Application Processing 5
4. Program Participant/Applicant Confidentiality 5
5. Dispute Resolution /Appeals Procedure 5
6. Exceptions I Special Circumstances 5
5. PROGRAM SERVICE DELIVERY
1. Program Participant Capacity Evaluation 5
2. Program Participant Capacity Development Work Plan 5
3. Business Development via Classes 6
4. Business Development via "One on One" Counseling 6
5. Business Development via "Peer to Peer" Counseling 6
6. Business Development via Online Computer Training 7
7. Participation and Completion of Capacity Development Work Plan 7
6. PROGRAM OVERSIGHT BY GRANTEE
1. Oversight of Consultant(s) 7
2. Tracking TA Services of Participants 7
Adopted: 9/29/2015
ATTACHMENT A: GRANTEE'S EXECUTED RESOLUTION ADOPTING
GUIDELINES
ATTACHMENT B: GRANTEE'S CDBG MICROENTERPRISE TECHNICAL
ASSISTANCE SERVICES PROGRAM APPLICATION
ATTACHMENT C: GRANTEE'S APPLICANT AND PROGRAM
PARTICIPANT TRACKING FORMS FOR TECHNICAL ASSISTANCE
Adopted: 9/29/2015
COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG)
MICROENTERPRISE TECHNICAL ASSISTANCE
PROGRAM GUIDELINES
1.0 INTRODUCTION
The County of Butte hereafter called "Grantee" has established a microenterprise
Technical Assistance (TA) program, hereafter called the "Program". TA will allow
program participants to be more successful in their efforts to create businesses
or expand existing businesses. TA provides technical assistance services
including; 1) classes/workshops on topics including but not limited to business
planning, customer service excellence, payroll processing, and conflict
management; 2) one-on-one TA services including but not limited to strategic
business plans, identity branding, marketing, e-commerce, sales, finance and
accounting, and loan readiness; 3) peer to peer counseling sessions; and 4)
online computer trainings on topics similar to those offered in the
classes/workshops and one-on-one trainings. These TA Program guidelines
have been formally adopted by the Grantee and approved by the California
Department of Housing and Community Development, hereafter called "the
Department". See Attachment A for a copy of the adopting resolution.
2.0 MICROENTERPRISE TA SERVICES PROGRAM OVERVIEW
2.1 PROGRAM ADMINISTRATION
The Grantee will:
• Market the TA Program;
• Accept and process participant applications;
• Document participant CDBG income eligibility and adequate number of
employees; and
• Ensure set-up of participant files to document all provided services and
associated costs.
Grantee will work with program participants and ensure CDBG compliance with
these program guidelines.
2.2 PROGRAM SERVICE AREA
TA services are available to all eligible businesses/persons located within the
legal Grantee's jurisdictional boundaries. These CDBG funds may not be used in
entitlement jurisdictions that receive CDBG funds directly from the federal
Department of Housing and Urban Development (HUD) entitlement program.
2.3 FUNDING SOURCE FOR TA PROGRAM SERVICES
The TA Program is paid for with CDBG funds provided by HUD to the
Department, as such, these funds have a number of federal requirements that
must be met, as described below. These CDBG funds come to the Grantee from
Adopted: 9/29/2015 1
Department grant awards that are administered under a formal grant contract or
from local CDBG program income (PI) funds which administered under an
approved PI Waiver.
3.0 CDBG PROGRAM REQUIREMENTS
3.1 ELIGIBLE PROGRAM APPLICANTS
All eligible applicants must meet the definition of a microenterprise. For CDBG
purposes:
• A microenterprise is defined as a commercial enterprise that has five or
fewer employees, one or more of whom owns the enterprise; or
• Persons developing microenterprises means persons who have
expressed an interest in, or who are, after an initial screening process,
expected to be actively working toward developing businesses, each of
which is expected to be a microenterprise at the time it is formed.
Eligible applicants must have a physical business address in the program service
area. Individuals wishing to start a new business are also eligible applicants, but
they must provide proof that their primary residence is located in the program
service area.
Eligible applicants documented as meeting the definition of microenterprise are
hereafter referred to as "program participants".
3.2 INELIGIBLE PROGRAM APPLICANTS
An ineligible existing business applicant is one that has a physical business
location outside of the service area. An ineligible person applying for the program
is one with a residence outside of the service area. Non-profits are not an eligible
microenterprise business. An applicant currently participating in a
microenterprise TA or Financial Assistance program offered in the same service
area as this program is not eligible.
3.3 ELIGIBLE PROGRAM COSTS
Use of CDBG funds for TA program services is restricted to certain eligible costs.
All costs associated with funding TA must be "indirect costs". Indirect is defined
as third party costs to consultants that provide TA to program participants.
Common TA costs may provide: 1) business development workshops or classes;
2) "one-on-one" counseling using professional business development staff; 3)
opportunities for"structured peer networking"; and 4) online business training
courses. The Grantee's specific CDBG TA services are outlined in Sections 5.3
to 5.6.
3.4 INELIGIBLE PROGRAM COSTS
Microenterprise "direct financial assistance" costs will not be funded under this
program. Direct financial assistance may be provided only under an approved
Adopted: 9/29/2015 2
CDBG microenterprise financial assistance program. Direct financial assistance
activities are typically any costs associated with day to day business operations.
These operations costs are ineligible, whether the business is operating out of a
private leased commercial space, their home or a public facility.
Examples of ineligible direct financial assistance costs are not limited to: 1)
payment of costs to purchase marketing materials (printing); 2) payment of
marketing ads or distribution of marketing materials; (ad placement, direct-
mailing, or electronic distribution) 3) payment of hosting or maintenance/support
plans; 4) payment of rents/ lease payments, utilities or other business fees or
operating / overhead expenses; 5) payment of purchasing real property or
furniture, fixtures or equipment for the business; 6) payment of any personal or
business debt; 7) payment of any cash or wages; 8) paying for credit reports; and
9) paying for loan or grant underwriting services.
In addition, no payment of food or drinks offered at the TA classes or other
instruction sessions are eligible costs. Cash or like cash payments,
undocumented TA costs are not eligible.
3.5 TIMEFRAME FOR RECEIVING TA SERVICES
Under federal regulations, a program participant may receive TA services for up
to three (3) years, after completing income verification as an eligible
microenterprise. It is expected that most program participants will use all
microenterprise TA services well before the three year limit.
3.6 MEETING CDBG MICROENTERPRISE DEFINITION REQUIREMENT
Program applicants for this Program must meet the CDBG definition of a
microenterprise business. The CDBG definition of a microenterprise business is
one that has five (5) or fewer employees, including the owner(s). All employees,
part time and full time, on the business payroll at the time of loan application will
be counted. The term "employee" includes all owners of the business on the
payroll, even if the owner's "salary draws" are not on a regular basis. The
Program requires a current CDBG income self-certification form which should be
placed in the program participant file to document the number of employees and
compliance with the HUD microenterprise definition.
3.7 MEETING CDBG NATIONAL OBJECTIVE REQUIREMENT
Under federal regulations, use of CDBG funds for microenterprise activities must
meet the national objective of benefit to low/mod income persons under the
Limited Clientele definition. As such, all microenterprise owners must be
documented as meeting the HUD low/mod income definition prior to receiving
any Program services. This is in addition to meeting the definition of a
microenterprise, as described above in Section 3.6. The CDBG income self-
certification form will be used to verify income of program applicants for the
microenterprise technical assistance services program.
Adopted: 9/29/2015 3
As with other microenterprise program activities, if the Grantee finds that the
applicant income information is not accurate and the program participant is over
HUD's income limits, then a program applicant is ineligible and program services
currently being offered to program participants must cease immediately.
3.8 OTHER CDBG FEDERAL LAWS AND REGULATIONS
There are a number of federal laws and state regulations that are triggered with
the use of CDBG funding for a TA services Program. The Grantee will take the
lead and ensure compliance with these other CDBG regulations.
National Environmental Policy Act (NEPA) federal environmental laws per
regulation 24 CFR 58 are not triggered for individual Program participants. Nor
are there any compliance requirements for Davis Bacon and related Acts for TA
activities under these guidelines. Acquisition and relocation laws are also not
triggered when using CDBG funds for microenterprise TA services. However,
these federal laws may be triggered as part of using the TA funds in conjunction
with providing the program participant with financial assistance.
Federal regulations require that local program income be spent first prior to
drawing down any federal funds from an open grant. If a Grantee has a program
Income (PI) "Waiver" for funding technical assistance services and also has a
Department grant contract award for technical assistance services, the local PI
waiver funds must be expended first, prior to drawing down any funds from the
open grant contract with the Department.
4.0 APPLICATION PROCESSING FOR TA PROGRAM SERVICES
4.1 PROGRAM MARKETING AND OUTREACH
Upon the Grantee's receipt of a Department letter releasing TA Program funding,
the Grantee with assistance from consultant(s) providing TA services will conduct
outreach and marketing to all businesses and individuals in the program service
area. Grantee staff and consultants will work together to develop a marketing
plan for the program to outreach to businesses and persons in the community
regarding the availability and accessibility of the TA program. This plan should be
kept on file and updated as needed to ensure that all residents in the service
area are informed about and have access to program applications.
4.2 EQUAL OPPORTUNITY COMPLIANCE
This program will be implemented in ways consistent with the Grantee
commitment to state and federal equal opportunity laws. No person or business
shall be excluded from participation in, denied the benefit of, or be subjected to
discrimination under any program or activity funded in whole or in part with
CDBG program funds on the basis of his or her religion or religious affiliation,
age, race, color, ancestry, national origin, sex, marital status, familial status
(number or ages of children), physical or mental disability, sexual orientation, or
other arbitrary cause.
Adopted: 9/29/2015 4
4.3 PROGRAM APPLICATION PROCESSING
Applications will be processed on a first come first served basis. See
Attachment B for microenterprise TA services program application form. The
Grantee will accept applications and review for HUD income eligibility and an
allowable number of employees, per Department standards.
All program applications received, both denied and approved, will be logged and
kept on file in accordance with federal records retention act. Applicants who do
not meet eligibility requirements of the program will be notified in writing with an
explanation of ineligibility. Files will be set up for all eligible program participants
to document compliance with all CDBG regulations, Department policy, and
adopted guidelines and all provided TA services.
4.4 PROGRAM PARTICIPANT 1 APPLICANT CONFIDENTIALITY
All personal and business financial information will be kept confidential. Program
participant files with personal and business confidential information will be kept in
locked secured storage units.
4.5 DISPUTE RESOLUTION I APPEALS PROCEDURE
Any person applying for TA services through the CDBG program has the right to
appeal a denied application. The appeal must be made in writing to the Grantee.
A written response to the appeal will be provided to the applicant by the Grantee
within 30 days of receipt of the applicant's appeal letter.
4.6 EXCEPTIONS 1 SPECIAL CIRCUMSTANCES
Exceptions are defined as any action, which would depart from policy and
procedures stated in the guidelines.
5.0 TECHNICAL ASSISTANCE PROGRAM SERVICE DELIVERY
5.1 PROGRAM PARTICIPANT CAPACITY EVALUATION
Eligible program participants will meet with Grantee and/or consultant(s) staff to
receive a "capacity" evaluation. This evaluation process will be completed via a
face to face interview and standard written format. The current capacity of the
business owner or person wishing to start a business will be assessed. Areas of
strengths and weaknesses will be identified and steps needed to address
weaknesses will be identified.
5.2 CREATING CAPACITY DEVELOPMENT WORK PLAN
Based on the capacity evaluation, the Grantee and consultant(s) will work with
the program participant to develop a "work plan". The work plan will outline the
TA needed by the program participant and give a timeline for scheduling the
services. The work plan will contain expected outcomes from the TA, explain how
those outcomes will address the capacity issues identified in the evaluation and
provide an estimated cost. The work plan will clearly state the expectations for
Adopted: 9/29/2015 5
the program participant, consultant(s) and the Grantee. All parties will sign the
work plan. Copies will be provided to all parties and included in the program
participant file.
Eligible program participants will be provided detailed information on the TA
provided with this program. TA services will be tracked and documented in the
program participant file. The Grantee will remain in contact with the program
participant throughout the process.
5.3 BUSINESS DEVELOPMENT VIA CLASSES
Business development classes will be offered on a regular basis, when sufficient
demand for the classes is present. "Mixed TA classes" (eligible CDBG
participants and non-eligible CDBG participants) may be offered. When mixed
TA classes are offered, the Grantee has received prior written approval from the
Department to ensure compliance with federal regulations. Some examples of
topics for the classes may include: 1) business plan development or updating; 2)
market analysis and marketing plan development; 3) managing employees and
payroll services; 4) choosing a legal structure for a business; 4) financial
management tools and cash flow projections; 5) controlling inventory and
operating expenses; 6) collection of accounts payable; 7) use of the internet and
other electronic resources for sales and efficiency; 8) access to capital for
growing the business. Other classes may be offered based on the needs of the
program participants.
5.4 BUSINESS DEVELOPMENT VIA "ONE-ON-ONE" COUNSELING
Business development "one-on-one" TA will be provided as needed, typically
after a program participant has attended necessary microenterprise TA classes
in Section 5.5.
One-on-one TA will be scheduled with Program Participants a month at a time
beginning at the start of each month. The one-on-one TA will cover similar topics
to what is offered in the classes, but this TA will be much more detailed and
specific to the Program Participant. The one-on-one TA may be conducted in
person or via video conference call. The one-on-one TA may be conducted at the
location of the program participant or at the consultant's office. Notes on the TA
provided at these sessions, along with time and training materials used, will be
documented by the consultant and provided to the Grantee to be placed in the
program participant file.
5.5 BUSINESS DEVELOPMENT VIA "PEER TO PEER" COUNSELING
The Grantee may choose to allow the consultant(s) to organize Peer to Peer TA
if a sufficient number of program participants with similar types of businesses are
enrolled in the TA Program. Peer to Peer TA will be provided in a formal meeting
format. The Peer to Peer meetings will be facilitated by the consultant(s). Topics
for discussion at the meetings will be provided by the members of the group
which may include small group exercises and projects to facilitate participants
Adopted: 9/29/2015 6
working together to identify and find solutions to common problems experienced
in their respective fields.
The date and time for each meeting should be documented with sign-in sheets.
Discussion notes, activities conducted and outcomes at the meetings should be
documented in program participant files.
5.6 BUSINESS DEVELOPMENT VIA ONLINE COMPUTER TRAINING
Program participants may obtain approval from the Grantee to complete
business development classes online. The topics for the online classes being
requested must be in support of the capacity evaluation objectives. A list of
eligible online training classes will be provided by the Grantee. Any online
training or class not on the approved list must be reviewed and approved in
writing by the Grantee.
Online classes may be taken remotely or in the consultants' office. Classes will
be paid for directly by the Grantee to the third party vendor. Documentation of
completion of the online class is required and will be filed in the program
participant file.
5.7 COMPLETION OF CAPACITY DEVELOPMENT WORK PLAN
Program participants commit to completion of TA services as outlined in the
capacity building evaluation and plan document. The consultant(s) will commit to
providing the TA in the capacity building evaluation and plan. The program
participant, consultant(s) and the Grantee understand that the CDBG
microenterprise TA services are a limited public resource. Therefore, if a program
participant does not consistently complete their business development classes,
one-on-one TA counseling sessions, peer to peer meetings or complete online
classes, they may be disqualified from receiving any further CDBG
microenterprise TA. Disqualification will be in writing and fully documented in the
program participant file.
6.0 PROGRAM OVERSIGHT BY GRANTEE
6.1 OVERSIGHT OF CONSULTANT(S)
Grantee staff will serve as the primary contact with the Department. if the
Grantee determines that they wish to hire outside consultants to provide the TA
services, the Grantee will be responsible for securing services of qualified
consultant(s) for implementation of this TA Services Program prior to starting any
activities under these guidelines. The Grantee will hold monthly meetings with
the consultant(s) to review 1) marketing efforts; 2) eligible program participants
being served; 3) successful program participant stories; 5) demand for different
services and need for more resources or partners; and 6) review of program
tracking forms, See Attachment C.
6.2 TRACKING TA SERVICES OF PARTICIPANTS
Adopted: 9/29/2015 7
The Grantee will review the program status on a monthly basis per the items
listed in Section 6.1 as well as the following: 1) review of Department reports and
funds request for reimbursement of TA Services; and 2) preparation for
Department monitoring of grant contract and TA Services.
Adopted: 9/29/2015 8
ATTACHMENT A
GRANTEE'S EXECUTED RESOLUTION ADOPTING GUIDELINES
Adopted: 9/29/2015 9
..eye -
ffi
RESOLUTION NO.
A RESOLUTION OF THE BUTTE COUNTY BOARD OF SUPERVISORS ADOPTING THE
GUIDELINES FOR THE MICROENTERPRISE TECHNICAL ASSISTANCE SERVICES PROGRAM
WHEREAS:
A. The County of Butte entered into an agreement with the Department of Housing and Community
Development on July 21, 2015 to provide Microenterprise Technical Assistance Services under funding
from the Community Development Block Grant Program; and
B. Per Community Development Block Grant Program requirements,jurisdictions operating Microenterprise
Technical Assistance Services Programs must have Guidelines approved by the governing board; and
C. The Guidelines for the Microenterprise Technical Assistance Services Program establishes the policies
and procedures for the administration of the program funded under the State Community Development
Block Grant Program.
IT IS NOW THEREFORE RESOLVED THAT the Board of Supervisors of the County of Butte does hereby
adopt the attached document entitled, "Guidelines for Microenterprise Technical Assistance Services Program".
PASSED AND ADOPTED at a regular meeting of the Butte County Board of Supervisors this 29th Day of
September 2015 by the following vote:
AYES:
NOES:
ABSENT:
NOT VOTING:
Supervisor Teeter, Chair
ATTEST:
PAUL HAHN, Chief Administrative Officer and Clerk of the Board of Supervisors
BY:
10
ATTACHMENT B
GRANTEE'S CDBG MICROENTERPRISE TECHNICAL ASSISTANCE
PROGRAM APPLICATION FORM
Adopted: 9/29/2015 11
.a¢.,. - x Butte County Business Incubator Program (BCBIP) Client Application
Butte County: Phone: 530.538.6344 Fax: 530.538.7120
.C Ate °P k IA• www.ButteBusinessResources.com/Business-Incubator-Program
Submit completed application to:
Butte County Administration
25 County Center Dr.Ste.200
Oroville,CA 95965
Client Name: Date of Birth.
(Last) (First)
Business Name:
Business Physical Address:
(Street)
(City) (County) (State) (Zip)
DUNS#: Phone: Fax: Cell Phone:
Email: Website:
Estimated Annual Gross Family Income(must match self-certification form): #of people in family:
Race(check all that apply):White Black/African American Asian American Indian/Alaskan Native
Native Hawaiian/Other Pacific Islander Other/Multi-Racial
Hispanic/Latino: Gender: Disabled: Female Head of Household: Veteran:
Startup Business: Existing Business: Years in Business: Expanding: __ Relocating:
Sole Proprietor: Partnership: S Corp: C Corp: LLC: Number of Employees(including owner)
Description of Business:
It is estimated that with this assistance,business will potentially(include business owner's jobs in estimates):
Retain#of jobs: Create#of jobs: #of full-time jobs: #of part-time jobs.
*Types of Assistance(check all that apply).
Marketing Sales Product Development Support Bookkeeping/Accounting Financial Analysis Strategic
Planning E-Commerce Human Resource Planning Other
Specific business services needed.
*A Business Needs Assessment will be completed and a consultant will assist with determining what technical assistance services client may be eligible for.
if Existing Business,1 certify the following:
The physical address of the business is in the County of Butte(Businesses in the city limits of Chico and town of Paradise are not eligible).
Business employs 5 or fewer employees,including owner(s).
Business is legal,licensed&operating.
Business Owner Signature: Date:
if Startup Business,I certify the following:
My physical primary residence is in the County of Butte(Businesses in the city limits of Chico and town of Paradise are not eligible).
Signature: Date:
12
ATTACHMENT C
GRANTEE'S APPLICANT AND PROGRAM PARTICIPANT TRACKING
FORMS FOR TECHNICAL ASSISTANCE
Adopted: 9/29/2015 13
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