A proposal that would allocate $2 million in funds from the American Rescue Plan Act to support small businesses is taking shape.
City Council’s strategic planning committee recently reviewed recommendations by the city’s legal team, Mayor Eddie Moran and his administration regarding grant eligibility and other requirements.
“It’s evident that there is a pressing need for this type of assistance,” Moran said. “The discussion surrounding small-business grant opportunities has been a significant focus for many individuals. Finally, after months of deliberation, we are seeing progress in the dialogue.”
Council Solicitor Michael J. Gombar Jr. circulated a list of preliminary recommendations to initiate the discussion. The ideas, he said, are based on his research into similar programs implemented by other cities.
Gombar suggested making the grants available only to city businesses that have not received pandemic-related assistance from other sources. In addition, he said, applicants must be able to demonstrate a drop in revenue attributable to the COVID-19 pandemic and have had 25 or fewer employees prior to 2020, among other requirements.
Moran proposed dedicating half of the $2 million reserve to existing businesses on Penn Street or those willing to relocate there. Under the mayor’s proposal, the remaining funds would be available to businesses in other parts of the city. The mayor also suggested that maximum grants of up to $50,000 be given to businesses on Penn Street and up to $25,000 to businesses located off the city’s main street.
“This way, we can attract more attention to the downtown area,” he explained, “whether it’s assisting existing businesses or encouraging businesses to relocate specifically to the downtown Penn Street area.”
Funding should be limited to a certain percentage of a business’s previous fiscal year revenue, which is yet to be determined, said Jamar Kelly, the city’s deputy managing director.
Although the funds are intended to help alleviate financial hardships, such as decreased revenue and increased operating costs, he said, the city administration does not endorse simply replacing lost revenue.
Instead, Kelly noted, the grants could be used for projects and improvements, such as upgrading heating and cooling systems, that businesses would otherwise be unable to afford due to COVID-19 losses.
Kelly provided an example, saying, “If you’re a restaurant on Penn Street and you want to create a sidewalk cafe, we want to incentivize those sorts of additions to small businesses in our downtown area.”
Councilman Chris Daubert, who chaired the meeting, supported this concept. He cautioned against solely replacing lost revenue, as it could be detrimental, considering the city might end up funding businesses that have failed or are no longer viable.
“All of this ARPA money must be an investment that benefits the city, not just private individuals,” Daubert emphasized.
No immediate action was taken during the committee meeting.
As a next step, city administrators will draft an ordinance for review by council. The application process cannot begin until council adopts the ordinance.
Source: Berkshire mont
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