$1,000 COVID-19 grants available
By Robert Cloud
The city of New London will help support some of its local businesses with COVID-19 relief grants.
April Kopitzke introduced the proposal at the May 26 New London Economic Development meeting.
Since then, the Finance Committee voted to recommend the business relief grants at its June 3 meeting.
The city council approved the grant program Tuesday, June 9.
Pandemic’s economic impact
Kopitzke estimated that 98 New London businesses either closed completely or operated at partial capacity during the nine weeks the Safer at Home order was in effect.
“The city recognizes that small businesses have suffered from financial impacts of the COVID-19 pandemic,” Kopitzke noted in her initial presentation of the business relief proposal. “The New London Small Business Grant would be developed to provide short-term, immediate financial aid to small businesses who have sustained economic loss due to the COVID-19 pandemic.”
She noted that while many businesses have reopened now, most of them went nine weeks without normal income, and 82% of small businesses fail due to cash flow problems.
Grant criteria
Applications will be available online later this month.
Applicants must own a business within the city limits and must be a non-franchise business, with 1-20 full-time employees as of March 17, 2020.
Sole proprietorships qualify if they meet all other requirements.
The applicant’s business must have been operating and open to the public as of March 17, 2020, when the ban on large gatherings took effect.
The applicant must be a for-profit business of any legal structure. Nonprofit organizations are not eligible.
The applicant must be in good standing with the Wisconsin Department of Financial Institutions and the city of New London – real and personal property taxes, outstanding payments, potential judgments, licenses, fines, permit fees, or other amounts due to the city must be current.
The applicant must have been totally closed or unable to operate one or more of the primary functions of its business during the Safer At Home order. For example: a hair salon that was completely closed or a restaurant that offered only curbside or take-out orders.
If requests exceed available funding, grants will be awarded based on a random selection of eligible applicants.
Applicants who were unable to receive funding through the Payroll Protection Program will take priority.
Grant funding
The city’s Facade Grant Fund provides $2,000 grants to businesses on North Water and Pearl streets for exterior improvements.
Due to the pandemic, few businesses are currently using the funds.
The Facade Grant Fund has a balance of about $20,000.
The city will use that money to fund the COVID-19 business relief fund.
The maximum grant is $1,000.
Grant proceeds may be used for business expenses that became due on March 1, 2020 or later, for the purchase of personal protective equipment for staff, or invested in modifications to business spaces and operations to reduce the spread of the coronavirus or replace perishable inventory.