Fayetteville council looks covid aid for nonprofits

FAYETTEVILLE — The City Council is deciding whether put $100,000 toward immediate aid for small nonprofit groups that experienced financial losses during the pandemic at its next meeting.

The council met Tuesday for its agenda-setting session and discussed a proposal from the city administration dealing with disbursement of American Rescue Plan money. The city was awarded $17.9 million in the federal relief money intended to help communities recover from the covid-19 pandemic. It so far has received half the amount and will receive the other half sometime this year.

A proposal from Chief Financial Officer Paul Becker outlined three ways in which nonprofit organizations could receive money.

The first option is already activated. The city set up an online portal for nonprofit groups to become sub-recipients of the federal grant money. Those groups will carry out projects and programs on behalf of the city and must agree to the terms of a sub-recipient agreement. The sub-recipients must report detailed information on the use of the money to the city. In turn, the federal government will hold the city responsible for tracking the money and ensuring the use follows federal guidelines. The city would have to pay back the federal government for any improper use of the money.

That money is for nonprofit groups to use on a prospective basis, Becker said. Groups must ask for at least $25,000, and the city will reimburse each organization as it carries out its program. The deadline to apply to the portal is April 30. The administration will present the eligible projects to the City Council, which will then decide how much money to appropriate.

For example, an organization with a staff capable of providing aid to residents struggling to pay rent can apply to be a sub-recipient on the city’s portal, Becker said.

Two other options would consider the nonprof it groups as beneficiaries with a streamlined process for groups to recover financial losses experienced during the pandemic. Nonprofit organizations would apply through the city’s Community Resources Division, and financial staff also would review applications to ensure the use falls within federal guidelines.

Groups would be eligible to receive money to cover increased operational costs, payroll, rent and other expenses incurred related to the pandemic, Becker said.

Nonprofit organizations that incurred more than $5,000 in expenses during the pandemic would have until April 30 to apply for money. Becker said the administration will present the City Council a pool of applicants, and the City Council will be able to appropriate an amount of money based on the requests.

At the next council meeting, the administration will ask for $100,000 total to give to nonprofit groups that incurred less than $5,000 in expenses during the pandemic. The item the council will consider Tuesday would enable the city to take applications from nonprofit groups to cover up to $5,000 in losses each and start dispersing the money, Becker said.

Becker said smaller organizations that spoke to the council during past public meetings inspired the move, which would help provide immediate relief. If more money is needed, the council can appropriate more, he said.

Council member D’Andre Jones asked about the dollar amounts the city may provide and suggested at least $200,000 may be appropriate to start off. He said the city should focus on addressing needs as quickly as possible, and guidelines should not serve as barriers. Council members will be able to make amendments to the proposal during Tuesday’s meeting.

“We have to focus on, with this money, what it’s meant for, and individuals who have been impacted the most,” Jones said.