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Clifton authorizes $42,000 CARES Act small-business program, signs MOA with IDA
Summary
The Town Council authorized a Memorandum of Agreement with the town’s Industrial Development Authority and approved distributing $42,000 of CARES Act funds to qualifying Clifton small businesses, with the Town Treasurer acting as agent for disbursement and recordkeeping.
At its July 7, 2020 meeting the Clifton Town Council moved to create a small-business relief program funded with the town’s CARES Act allocation and to administer disbursement through the Industrial Development Authority (IDA). Vice Mayor Steve Effros moved to adopt a resolution appointing IDA directors and to empower the Town Treasurer to serve as agent for the IDA in administering CARES funds; that motion passed by roll call.
Council authorized the Mayor to sign a Memorandum of Agreement (MOA) with the IDA (MOA text was entered into the record). The MOA, included in the meeting packet, cites Virginia Code § 15.2-4905 as the enabling authority for the IDA to accept and distribute federal funds; it requires the Town to screen and identify grant recipients, to provide recipient names and W-9 forms to the IDA, and to retain records needed to satisfy Fairfax County and CARES Act reporting requirements.
The council voted to authorize distribution through the IDA of $42,000, with funds to be equally divided among qualifying applicants. Mayor William Hollaway said the Town would create an application process and selection criteria and that the Town Treasurer would disburse funds in accordance with the MOA. The MOA as recorded also includes an indemnification clause assigning certain liabilities to the Town and sets a default expiration of Dec. 31, 2020 unless the parties agree to extend the arrangement.
Implementation tasks recorded at the meeting include: development of an application; collection of W-9s and payment directions from grantees; Treasurer retention of payment records; and the Clerk’s retention of administrative records for audit purposes. Council members agreed the town would coordinate with Fairfax County, and the Mayor was authorized to execute any necessary agreement with the county when ready.
The town recorded the MOA signature blocks with Brant Baber identified as IDA chair and Mayor Hollaway as the Town signatory. Council discussion noted the CARES Act’s allowable use for reimbursement of COVID-19-related expenses and that local procedures must ensure funds meet federal reporting criteria.
Next procedural steps noted: finalize selection criteria, collect documentation from recipients, and schedule disbursements. The council did not identify specific recipients at the July 7 meeting.
