The Coronavirus Aid, Relief, and Economic Security Act also known as the CARES Act, is a law intended to address the economic fallout of the COVID-19 pandemic in the United States and was signed into law by President Donald Trump on March 27, 2020.

As part of that law, funding was passed on to the State to support expenses due to the impacts of COVID-19.  It currently can not cover lost municipal revenues.

Various cities and counties across the United States are exploring the use of these funds as forgivable loans to support small, local businesses.  Many of these businesses were not able to participate in many of the recent programs or various programs ran out of funds.

The State of Minnesota is exploring if CARES Act funds can be used to create Small Business Relief Programs.  The State has not received final guidance or made a decision if this is an eligible use of the funds. Cities and counties are setting up these programs in anticipation that this is a possible use if the program has been previously approved.

Modeling off of several other cities and counties, staff is proposing the attached program should the City of Shakopee receive CARE Act funds that can be used for this purpose. It would only be funded if the use is approved by the State and if Council agrees to fund it at some level to be reimbursed out of CARE Act funding.