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FAIRMONT -- Local businesses and non-profits impacted by COVID-19 may be eligible for grant money soon, but just who would get funds and how much they would get is still in the planning stages.
At a special work session on Monday, the Fairmont City Council offered unanimous support to develop a grant program in collaboration with Martin County. The council cannot vote on any business during work sessions so the formal vote will be held at its Sept. 14 meeting which will give those involved time to develop specific criteria for the program.
The city received $776,000 from the federal government as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act which can be used for municipal expenses incurred from March 1 through Nov. 15. Although the city has tallied more than $1 million in qualifying COVID expenses, some of those costs, such as payroll, already were included in the budget. Because of this council members strongly supported using $250,000 of the CARES Act funding for a grant program to support small businesses, those with 50 full-time employees or less, as well as non-profits.
Linsey Preuss, Fairmont economic development director, told the council she already has a list of 10 businesses who would be interested in applying if the grant program moves forward. She said Martin County received $2.4 million in CARES Act funding and is possibly looking to use $750,000 of that for a grant program, which presents an opportunity for the city and county to collaborate.
"If the programs are similar, it would be a lot easier to work together," she said.
"I think they (programs) need to be identical, not similar. I think we should work together and pool funds, assuming the county's on board with that," Councilor Bruce Peters said.
Other council members agreed, while specifying certain criteria for the funds, such as the city share must go to qualified businesses within the city limits due to a stringent federal audit overseeing the funds.
City Administrator Cathy Reynolds said if the audit deems that the recipient or use of the funds was ineligible, the city, not the business, would be required to pay back the money.
Reynolds presented the council with a list of criteria other communities are using for their grant programs. Some based eligibility on the number of full-time employees, the physical local of the business, the owner's residency and the type of business.
"Every community is tailoring its own program. No two cities really have the exact same program," she said.
Reynolds asked the council if they wanted to include non-profits in the grant program.
Councilor Wayne Hasek immediately spoke in support of non-profits.
"If they have damages, does that make them less deserving?" he said, and the other council members agreed.
"They're no different (than businesses). They're just trying to make it too," Councilor Ruth Cyphers said.
Preuss asked about the size of each grant, noting the county was considering $10,000 to $25,000.
"That's a big difference," she said.
Councilor Bruce Peters said the amount of each grant could depend on the total number of applicants.
Councilor Tom Hawkins wanted the program to focus on those businesses that were forced to close during the shutdown, such as restaurants and fitness center.
Expenses that can be tracked, such as utilities and rent or mortgage payments, should be a focus, according to Councilor Randy Lubenow.
"I get leery of payroll especially since we (city) are going to be responsible for this," he said.
Lubenow also suggested a minimum pay of perhaps $2,000 to all qualified entities that apply.
Mayor Debbie Foster suggested that Reynolds, Preuss and Paul Hoye, city finance director, represent city staff and Lubenow and Peters represent the council in collaborating with the county to develop criteria for the grant program.
"It's going to be a time commitment, and it could be some tough decisions to make," she said.
Reynolds said the group would develop an application process with a list of documentation required from each applicant and present it for council approval on Sept. 14. She added that the council members might not be involved in determining who gets the grant funding.
"We will work with the county and establish what the review committee looks like," she said.