Kyle City Council Earmarks $100,000 For ECAP

On Tuesday, the Kyle City Council earmarked $100,000 to go towards supporting Kyle Businesses in partnership with Hays County’s Emergency Cash Assistance Program (ECAP) Grant Fund. 
 
The ECAP fund will disperse a total of $600,000 to county businesses and is designed for those small businesses located in Hays County that are struggling to sustain operations due to the COVID-19 health crisis.

The fund aims to help businesses that were unable to secure assistance via the Payroll Protection Program (PPP) loan through the CARES Act or the Economic Injury Disaster Loan program through the US Small Business Administration.  

“COVID-19 is first and foremost a health crisis, but it is also a severe economic crisis that has left many local businesses struggling to keep their doors open,” Director of Kyle Economic Development Diana Blank-Torres said. “The City of Kyle’s Economic Development Team, along with the County and Greater San Marcos Partnership, wants to help fill that gap that so many businesses have fallen through by extending grant funding to the businesses that were unable to secure help through the Payroll Protection Program or the Economic Injury Disaster Loan program.” 

The ECAP fund, which was initiated by the Hays County Commissioners Court, is a collaboration between the City of Kyle, Hays County, PeopleFund, and the Greater San Marcos Partnership (GSMP).

The fund will provide a grant of up to $10,000 to qualifying businesses on a first-come, first-serve basis. The loan agency PeopleFund, a nonprofit community lender, will manage the application process.

 A PDF version of the application is currently available for review at https://greatersanmarcostx.com/sites/default/files/files/ECAP%20Application%20-%20PDF%20.pdf to help prepare applicants for the information that will be requested.

On Monday, Aug. 10, applicants may begin submitting their applications and required documents online at https://peoplefund.org/hays.

Applications will close once all funds have been awarded or upon Dec. 31, 2020 — whichever comes first. 

Grants will be awarded on a basis of $1,000 per qualifying employee, up to a maximum of $10,000. 

Grant funds may be used for:  

• Working capital (including rent, pre-existing mortgage and utilities) 
• Inventory or supplies 
• Furniture or fixtures 
• Machinery or equipment 
• Maintenance or repairs 
• Payroll or employment benefits for qualifying employees. 

All the following criteria must be met: 

• Must be a private sector business or nonprofit organization. 

• Must have been in operation since at least Jan. 1, 2019 with a location within Hays County. A residence-based location may be acceptable provided applicant certifies that it offers services primarily within Hays County. 

• Limited to those with less than 10 full-time equivalent qualifying employees. 

• Must have been in good standing with the State of Texas, and have no outstanding tax liens, as of Jan. 1, 2020. 

• Must be in good standing with City and County taxes, as well as all permits, and licenses as of Jan. 1, 2020. 

• Businesses that have been the recipient of any federal or state assistance program such as the Payroll Protection Plan (PPP) or the SBA Economic Injury Disaster Loan Assistance program (EIDL) do not qualify for ECAP funding. 

• Any natural persons holding more than 10% beneficial ownership of the business must certify via an affidavit prior to grant closing they do not have access to unencumbered liquid assets in excess of $100,000. 

• Eligible applicants will be asked to sign up for a one-hour virtual technical assistance meeting or workshop with PeopleFund, covering disaster response planning, financial assistance sources or other relevant topics. 

Required Documents Include:  

• Completed application 

• Copies of payroll evidence for January and February 2020 

• Copies of business governance documents such a partnership or LLC agreement or similar type of documentation need to be made available to prove current ownership and the authorization to enter into this transaction 

• List of Beneficial Owners owning greater than 10 percent 

• Submittal will include the following financial information: 
  • Profit and Loss Statements (by month if possible) through the end of March 2020. 
  • Use of funds statement certifying that funding shall only be used for those items for which ECAP funding is permitted).  (See list of available uses for grant above in the Award Amount section) 

“This program came out of a recognition that some of the small businesses that we know and love in our communities were not able to gain access to any of the federal assistance programs,” said Councilmember Tracy Scheel, who served as the Kyle Representative on the County ECAP Committee.   “We hope this fund will provide some much-needed financial relief to our small business community because they don’t just support our economy, they’re also an important part of our community.” 

To apply, go to hayscountyecap.com. For assistance navigating the application process, call 512-222-1016.