Council mulls COVID loss grants to businesses

(11/10) Burgess Barnes proposed to the town council that, of the $473,908 that the town has received from the American Rescue Plan Act, $50,000 be used to provide grants for small businesses in town that where negatively affected by the pandemic, which Barnes stated was an allowable use for the money.

Each business, Barnes suggest, can apply for a maximum of $5,000 using an application provided by the Town that will allow them to highlight the ways in which they were affected.

Barnes noted that the proposed $50,000 was dependent upon the number of businesses that apply and that this number could possibly be subject to change. He added, "it’s not much, but it could help… $5,000 is a lot for some small businesses that took a big hit during COVID-19."

The Council, while generally in favor of the proposal, was unsure as to whether the grants should be limited to ‘brick and mortar’ type business, or be open to home based business as well.

Commissioner Cutshall questioned what criteria would be used to determine who would get money and who would be involved in the application review process to determine which businesses meet the criteria and how much money they should be awarded. Barnes responded: "that’s the next step. We’ll need to get a committee together for this. I do not want to be on the committee, being the Mayor." He added, "I think we should have a three-person committee that is not elected officials, but maybe one councilmember who oversees the committee."

Town Manager Rice and commissioner Cutshall agreed that one member should be from the Town Council, and the others should not be business owners for the sake of fairness. Barnes noted that he has spoken with other Mayors in Frederick County who are providing similar grants, and said that the requirements would not be so substantial that it would hinder businesses from applying, adding "most businesses can show us how they were affected."

Businesses that are approved for the grants will be required to retain receipts to verifying business purchases relating to the grants.

"I personally think it’s a good thing to do for the small businesses in our community… that’s what part of this [grant] is for, and $5,000 a business is not too much." Barnes stressed. "If we get 20 businesses that apply and get approved, it would only be $2,500 a business" to which Cutshall agreed, stating that the grant should be divided equally.

The Town Council will take up the matter formally at their December meeting. If approved, the town hopes to advertise the grant program and the application process in January.