Over $12 million in CARES Act funding will be awarded

By Snohomish County Government | Press Release

Editors Note: Business sector breakdown and graphs were added by Lynnwood Times staff.

EVERETT, Wash., June 25, 2020 – Today, Snohomish County announced grant awards for the Relief, Recovery and Resiliency (R3) and the First in Flight (F3) grant programs. These grant programs are part of the county’s plan to use federal CARES Act resources to support those businesses impacted by the COVID-19 pandemic.

“Supporting small businesses, aerospace companies, and our Paine Field cluster of enterprises will be key to our economic recovery,” said Snohomish County Executive Dave Somers. “These grant funds will not only help companies impacted by COVID-19 but also assist people in getting back on their feet more quickly by preserving jobs. We know recovery will take time. These funds offer our community hope, make a difference in the lives of many, and allow our local businesses to continue to do what they do best: providing services and goods to our residents.”

“Across Snohomish County, successful companies have been damaged by the COVID-19 pandemic, and one of the County’s top priorities is speeding federal funds to them,” said Snohomish County Council Chair Nate Nehring. “We want workers and business owners to open safely and rebuild our economic momentum. Families are depending on all of us doing our part.”

Relief Recovery and Resiliency (R3) Grants

The R3 grant program is a key part of the relief and recovery action Snohomish County is taking to help small businesses impacted by the pandemic. Businesses applying for grants under this program must:

• Be licensed to do business in the State of Washington.
• Be a business physically located in Snohomish County.
• Have 20 or fewer employees (including the business owner/worker).
• Be in operation for one or more years.
• Certify at least a 25% reduction in revenue attributable to the COVID-19 pandemic.
• Able to demonstrate that the business was a going concern before March 23, 2020.

Economic and unemployment data for Snohomish County provides insight about our hardest hit businesses. The focus of the R3 grant program is on small businesses that are critical to supporting our community’s broad-based recovery. Priority has been given to dining, retail, hospitality, arts and entertainment, and service sector establishments.

Funding is intended to support business sustainability through the COVID-19 public health emergency. The funds received must be used to cover expenses that have not been previously accounted for and are incurred between March 1, 2020 and November 30, 2020.

Snohomish County received 2,194 R3 applications totaling over $41 million in requests in the first round, and the selection committee had $5.68 million in grant funds to award. Three hundred and seven (307) small businesses received awards. The application period for R3 grants opened on May 20, 2020 and closed on June 4, 2020. After the deadline, all applications were reviewed and proposed awardees selected. Recipients will have to agree to a contract in order to receive funds. Workforce Snohomish will be managing the contracts and administering funds, once contracts are signed.

The allocation of R3 relief grants totaling $5.68 million is as follows:

• District 1 – $1,110,000
• District 2 – $1,115,000
• District 3 – $1,425,000
• District 4 -$965,000
• District 5 – $1,065,000

The main business sectors awarded the R3 funds are as follows:

• Agriculture – $25,000
• Arts/Entertainment- $300,000
• Childcare – $110,000
• Construction – $320,000
• Health Services – $790,000
• Manufacturing – $235,000
• Restaurant/Dining – $1,240,000
• Retail/Hospitality – $1,055,000
• Salon/Spa – $940,000
• Other Services – $665,000

R3 grant applications that were not accepted for an award in the first round will automatically be included for consideration in the second round. For additional information about the second round of the R3 grant program, go to workforcesnohomish.org.

First in Flight (F3) Grants

As Snohomish County’s economic engine, Paine Field accounts for nearly $60 billion in annual economic impact and has a direct and indirect employment of over 158,000 workers. The First in Flight Funds will assist tenants at the airport, help other Snohomish County aerospace businesses sustain operations, keep local residents employed, and support the County’s overall recovery efforts. The negative impacts of COVID-19 had significant impact on aerospace businesses and those companies located at Paine Field. These funds come at a critical moment for business recovery, as the region transitions to a more open economy.

The focus of the F3 grant program is on aerospace companies and Paine Field businesses that are critical to supporting Snohomish County’s recovery. Funding is intended to support business sustainability through the COVID-19 public health emergency. The funds must be used to cover expenses that have not been previously accounted for and are incurred between March 1, 2020 and November 30, 2020. Examples of fund use include: employee payroll, loss of income or increased expenditures directly related to COVID-19, and loan/bond debt service for real property.

Snohomish County received 48 applications totaling over $25 million in requests, and the selection committee had $7 million in grant funds to award. Twenty companies received awards. The application period for F3 grants opened on May 20, 2020 and closed on June 4, 2020. After the deadline, all applications were reviewed and awardees selected. Recipients will have to agree to a contract in order to receive funds. Workforce Snohomish will be managing the contracts and administering funds, once contracts are signed.

To qualify for grants under this program, businesses must attest that they:

• Are a current Snohomish County Airport tenant or aerospace business and have employees on-site or in Snohomish County as of March 1, 2020.
• Meet all conditions of the Coronavirus Relief Fund CARES Act support received by Snohomish County.
• Are a small business.
• Have been in business continuously since March 23, 2019.

Applications that were not selected will be kept on file for consideration should additional funds become available.

These grant programs were part of the package of COVID-19 responses proposed by Executive Somers, approved by the County Council, and funded by CARES Act resources. That package includes: $55 million for Public Health and Emergency response activities, including PPE; $37 million for economic stabilization; $25 million for human/social services and housing; $6 million for essential government services; and $20 million for emergency contingencies.

These grant programs add to the actions Snohomish County Executive Dave Somers has implemented to support businesses and workers, including:

• Launch of a Blue Ribbon Economic and Workforce Recovery Taskforce and District Advisory Groups
• Creation of the Office of Economic Recovery and Resiliency
• Establishment of a Response Fund with the Community Foundation of Snohomish County and local partners
• Extension of a Deadline for Individual Property Taxpayers with County Treasurer Brian Sullivan

The County anticipates announcing both a relief program for Snohomish County private, non-profit organizations and workforce grant opportunities later this summer.