Restaurants, gyms, and other small businesses severely affected by the new COVID-19 public health regulations have the option to apply for relief under a program approved by Loveland City Council on Tuesday.
Council members unanimously voted to allocate $ 750,000, which will be divided among the number of qualified companies that apply. The money will come from the General Fund’s 15% Fiscal Reserve, leaving behind $ 13,251,615.
Kelly Jones, director of economic development at Loveland, said the damage done to companies by a recent surge in COVID-19 cases and the resulting statewide level red rules was more severe than it was in the early days of the Pandemic-imposed closure orders.
“We’re just inundated with her pain, and it’s way worse than what I just heard in May or June,” she said.
According to Alan Krcmarik, the city’s chief financial officer, the city’s sales tax revenues fell by around 18% in November.
While Jones described $ 750,000 as a “patch,” and Mayor Jacki Marsh hoped the council would have been willing to invest more, both emphasized the need for the program.
“Our elixir of life is our sales tax revenue (and of course property tax revenue). And these are the companies that are generating it, ”said Marsh. “In all honesty, we cannot afford to lose these businesses.”
Jones said applications could be available as early as Friday. The application deadline is January 8th and the first grants will be paid out on January 15th.
To be eligible for assistance, companies must:
- Work in the town of Loveland.
- Be a for-profit company.
- Are in one of the seven hardest hit industries identified by Jones’ division, including restaurants and bars; Breweries, wineries and distilleries; Gyms and fitness studios; personal services and spas; independent retail less than 10,000 square meters; Art, entertainment or creative industries; and privately owned hotels.
- Don’t be a franchisee of a larger company or a public company.
- Show a loss of at least 20% in sales since the Level Red rules were introduced on November 24th.
- Be in good hands with Loveland Water and Power and the Loveland Sales Tax Administration, or willing to use the money to help build a reputation.
The council also gave the Jones department the freedom to decide how to limit the size of eligible companies, taking into account the size of the workforce and the revenue proposed by councilors as revenue, as well as other industries that have been particularly harmed.
Funding must be for “legitimate business expenses” such as rent, payroll, ancillary costs, increased operating costs related to COVID-19, or supplies required to operate during the pandemic. Selected companies are expected to provide a report and evidence of how the grant money has been spent within 60 days of receiving their awards
Division II councilor Andrea Samson also urged applicants to adhere to public health guidelines before receiving an award. She dismissed criticism from council Conservatives who said they did not believe it was the place in the city to enforce the leadership of other authorities they believed to be arbitrary.
“It’s not about who made the rule,” said Samson. “Our city enforces the age of alcohol consumption. I don’t think we made that rule. This is about getting something done to improve our community. “
Ward III alderman Steve Olson said he believed their proposal would punish companies that desperately ignored the rules.
“We shouldn’t punish companies for getting frustrated and trying to get attention,” he said. “I understand the governor is trying to save lives. … I think we are prolonging this and not saving lives. But we kill businesses and we kill dreams. “
Jones replied to a question from Olson that she believed that the majority of companies that refused to obey the rules were not acting out of necessity and that many were acting for political reasons.
Samson’s motion was denied 5-3, with she, Marsh, and Ward I Councilor Rob Molloy in favor. Ward I Alderman Richard Ball was absent Tuesday.
With the grant program approved under an Emergency Ordinance, Tuesday night’s vote was the first and only vote required to make it law.