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1. What is UpStart Cocoa?

UpStart Cocoa is a small business development program designed to empower entrepreneurs to succeed in Cocoa, attract Minority-Owned Businesses to the City, contribute to the City's economic vitality by promoting small business, and to cultivate vibrant neighborhoods through diverse businesses in Cocoa. The Program is designed as a forgivable loan program, which may be awarded after successful completion of business coaching and educational training for entrepreneurs offered through the weVENTURE Program. Loans are available up to $10,000 which includes $2,500 towards the weVENTURE program and $7,500 for eligible refundable expenses.  

2. Am I eligible to apply for an UpStart Cocoa Forgivable Loan?

The following are the eligibility requirements for the UpStart Cocoa program:

	Minority-Owned Business means any small business which is organized to engage in commercial transactions and which is at least 51% owned by minority persons. Persons of minority include African Americans, Hispanic Americans, Asian Americans, Native Americans, and American women.
	New minority-owned start-up businesses (3 years or less) and any minority-owned business looking to relocate into the City of Cocoa with 10 employees or less.
	All applicants must be willing to participate in and complete the 24-week business education and mentorship program offered through weVENTURE.
	Any eating and drinking establishments may be eligible for funding as long as the business derives at least 51% of its gross revenue from the sale of food and/or non-alcoholic drink for consumption on the premises, whether or not the food is cooked on the premises. This may include restaurants, mobile vending, and refreshment stands selling prepared foods for immediate consumption. All applicants who will utilize a mobile vending model will need to commit to required hours/percentage of sales/other in the City of Cocoa area.
	The types of businesses that are not eligible for funding under this Program include: social service providers, non-profit agencies, gun shops, agricultural services, liquor stores, medical marijuana and CBD shops, shops that sell drug paraphernalia, pawn shops, bail bond services, tattoo/body piercing parlors, check cashing facilities, adult entertainment facilities, thrift shops, nightclubs and bars, and any business or service deemed illegal.
	The applicant shall not be eligible for the Upstart Cocoa Program if he/she has received Upstart Cocoa Funding, or other business assistance funding from the CRA or the City of Cocoa within the last three (3) years from the date of the current submittal, except for façade improvement programs.
	For start-up businesses, the minority entrepreneur is required to invest at least 10% of startup costs from non-UpStart Cocoa Program related funding sources.

3. What is the community enrichment requirement of the program?

All applicants who are awarded a forgivable loan through the UpStart Cocoa program are required to give back to the Cocoa community through the donation of volunteer hours, goods or services. Donations shall be made to a public entity (schools, non-profit organizations, etc.) or a 501(c)(3) providing services to the Cocoa community. This must be completed within the three year term of the loan agreement.

4. How will the funds be provided to the chosen business?

Eligible funds will be reimbursed to the chosen applicants based on the recommendations of the weVENTURE program and the refined business plan. 

5. What is the purpose of the weVENTURE portion of the program?

The 24-week weVENTURE business coaching and mentorship program will help applicants gain further education regarding topics such as business management, finance and budgeting, marketing, product/service development, and human resources. In addition, the selected applicants will work with weVENTURE to refine a business plan appropriate for a start-up business or existing business expansion. 

6. Who is on the UpStart Cocoa and UpStart Diamond Square review committees?

The UpStart Cocoa and UpStart Diamond Square review committees will be comprised of one member of the City's Finance Department, a member of a local banking institution, a member of the weVENTURE team, and a member of the Diamond Square CRA board.

7. How will applications be reviewed?

All applications submitted by the posted deadline will be reviewed for completeness, and compliance with the program criteria and then forwarded for review to the review committees. Businesses that do not comply with the program criteria and conditions will not be eligible for funding. 

8. What factors will the review committee use for funding recommendations?

The following factors will be considered for the eligible reimbursable expenses as part of the UpStart Cocoa forgivable loan:

• The estimated cost of proposed eligible expenses
• Strength of the business plan
• Evaluations of applicant performance in the weVENTURE program
• Potential economic and fiscal impact of the proposed business on the City of Cocoa
• Location of the proposed business and whether it will be home-based
• External funding available to the applicant

9. What are the conditions of the loan agreement once funding recommendations have been made to City Council?

Conditions included in the UpStart Cocoa agreement may include, but are not limited to:

• Grantee shall remain open for business at a City of Cocoa location for a period of at least three years. Funding shall be expended and reimbursed within one (1) year of the effective date of the Agreement.
• Grantees not yet open for business must be open for business and begin to provide services or products to the general public within six (6) months of the effective date of the Agreement.
• Business must submit annual reports to the Office of Economic Development. 
• Grantee shall provide and complete a Community Enrichment Element prior to the end of the third year.
• Grantee shall display the Upstart Cocoa logo, as provided by the City, on the front main entrance door of the business.
• Businesses that relocate outside of the City prior to loan forgiveness will be required to repay the loan in full.
• Existing business owners must possess a current City of Cocoa Business Tax Receipt. New business owners must obtain a City of Cocoa Business Tax Receipt within 90 days of agreement execution.
• Grantees will also be required to invest in the project for which funding is requested in an amount of at least 10 percent (10%) of the cost of the items approved for funding.
• All grantees must be in compliance with applicable City codes, policies and ordinances and current on federal, state and local taxes.  
• Grantees who are approved for financial assistance for lease costs (rent abatement) must secure a minimum of a three-year lease in the City of Cocoa unless otherwise approved by the review board.
• All grantees who will utilize a mobile vending model will need to commit to required hours/percentage of sales/other in the City of Cocoa area.
• Once a grantee received funding under the Program, he or she may not apply for other business assistance programs from the CRA/City of Cocoa, except for façade improvement programs, for a period of three years.  
• The Program Manager will remain actively involved with the grantees via site visits or yearly meetings.

10. How do I get reimbursed for eligible expenses?

To be reimbursed, the Grantee must provide to the Office of Economic Development paid receipts from laborers, suppliers, materialmen, contractors, and subcontractors.  The receipts must include the following information:

• Name, address, and telephone number of laborer, supplier, materialmen, contractor, and subcontractor performing work or supplying material or of landlord receiving rent payments;
• Date of work or material provided;
• Itemized description of work provided (e.g., who performed the work, how many hours involved, charge for work, type of work performed) or material supplied (e.g., number of gallons of paint, quantity and measurements for each new dome style awning, feet of fence installed, description of LED wall pack) or identification of property and premises for which rent has been paid;
• Itemized cost of work performed or material supplied;
• Statement signed by landlord, laborer, supplier, materialmen, contractor or subcontractor that the amount billed has been paid by the Grantee

Payment is made to the grantee on a reimbursement basis.  The grantee must submit invoices with original receipts to the Program Manager for items and services purchased in accordance with the terms of the Forgivable Loan Agreement and this Policy.  The expenses will only be reimbursed for items and services purchased after the effective date of the Forgivable Loan Agreement, unless the Board approves otherwise.  If rent abatement has been awarded, payments will be made to the grantee upon proof of payment to the landlord for each month that is specified in the Forgivable Loan Agreement.  All payments will be made to the grantee approximately thirty (30) days from the date of receipt of the requisite documentation. The Program Manager will establish the necessary administrative procedures for processing payment.  

11. What happens if I do not comply with the terms of the loan agreement?

If the grantee fails to comply with one of the conditions to receiving funds under the Upstart Cocoa Agreement, the Program Manager will contact the grantee in an effort to determine the reason for the noncompliance.  Without compromising the integrity of the program, the Program Manager shall attempt to accommodate legitimate and substantiated problems being faced by the grantee.

If a suspected default or breach occurs, as defined in the Forgivable Loan Agreements, the Program Manager will first contact the grantee in an effort to verify the occurrence of a default and determine the reason for the default.  If the Program Manager is not successful in contacting the grantee, he/she will inform the City’s Attorney of the suspected default.   Once the City’s Attorney confirms the default, the Manager will cease further payments to the grantee and instruct the City Attorney to send a letter, notifying the grantee of the default and demanding either the grantee cure the default or reimburse the City of Cocoa.   The letter will also instruct the grantee to contact the Program Manager to further discuss the matter.  If the grantee fails to respond to the demand letter, fails to cure the default or reimburse the CRA/City the stated amount, or proposes a settlement, the Program Manager will coordinate a meeting of the Upstart Cocoa Review Committee.  The Program Manager will send a letter to the grantee notifying him/her of the date and time of the meeting.  

The Upstart Cocoa Review Committee will meet on an as-needed basis and will make recommendations to the City Council regarding the appropriate action to take with regard to seeking reimbursement of funds already paid to the grantee, including, but not limited to: (1) recommending that the City Attorney’s Office initiate litigation in the event the grantee fails to respond to the demand letter or refuses to reimburse the City of Cocoa; (2) recommending mediation or other alternative dispute resolution actions; (3) recommending terms of a mutually agreeable settlement in the event the grantee proposes a payment schedule; or (4) recommending no further collection action and termination of the Agreement.  The Committee’s decision will be reported to the City Council for final approval.