City approves grant program to help local businesses

By: 
Wade Young

The City of Montgomery approved a grant program on Monday to help small businesses hurt by the coronavirus outbreak.  

The plan offers $1,000 grants for qualified businesses impacted by Governor Walz’s executive orders 20-04 and 20-08. The money can be used for expenses like rent, mortgage payments, utilities, payroll, accounts payable, or other immediate operational expenses.

City Planner/HRA Director, Leah Petricka, said multiple options to offer the funds as a loan or a grant were discussed. However, after surveying business owners, a small grant would be the most effective. 

The money comes from a pot of $40,000 from the EDA’s revolving loan fund from prior awards the city has received in the past. In its EDA meeting on April 16, Mayor Tom Eisert clarified the money was not coming from taxpayers.

“I think it’s important that this is not coming from the citizens and taxpayers of the City of Montgomery,” he said. “We are using money from a grant. This is not their tax money going toward this.”

Before the council’s unanimous approval Monday, members discussed details of the plan, specifically how to handle applicants who have multiple businesses. Eisert asked if the plan limits to one per individual, or provides grants to each business?

Councilor Dennis Lambrecht sits on the EDA board. He said the plan to help business owners is needed. 

“The idea is to get money into their hands with no customers coming through the doors,” he said. “However, I question the number of owners with multiple businesses. I want to make sure all applications would have $1,000 available to them.”

Lambrecht also spoke about businesses, which are still open because they were in an exceptional category, but who are also limping along. He said they should also be eligible.

Councilor Butch Kubes said it was a great idea to help out local businesses.

Bob Forcelle agreed with Lambrecht, saying the city needs to make sure to get money distributed to help as many business owners as they can.

Council members also discussed different rounds of funding, the length of time a business was open before the executive orders were issued, and businesses with rented spaces for contractors (beauty salons).

For details and an application, business owners should go to https://www.cityofmontgomerymn.com/ and click on the COVID-19 banner.

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