Small Business Grant Program

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Local businesses in Acton are hurting due to COVID. It is important for us to support our small businesses. Here is my presentation at the Special Town Meeting on September 8th in support of a $165,604 funding proposal to help 43 eligible small businesses. The Town Meeting voted overwhelmingly in favor of the small business grant program.

If you would like to watch the entire presentation with comments, here is the link- My statement runs from 1:13:45 to 1:22:51

http://actontv.org/on-demand/p...

Would the business grant program have been eligible for CARES funds? The Town obtained and originally sought to use CARES funds for the business grant program, but Massachusetts refused to release the Town’s CARES funds for that purpose even though the grant program was an eligible use. That is why the Selectmen had to secure Town Meeting approval to use the Town’s reserves instead.

Massachusetts received $2.67B in CARES funds from the Federal Government to assist in the payment of COVID related expenses. The State allocated $500M of this amount for distribution among the 351 cities and towns in the Commonwealth. Acton was allocated $2.1M. The MA Department of Revenue had to release any funds that the Town proposed to use from its allocation.

Under the federal guidelines the monies could not substitute for lost revenues or replace budgeted municipal spending and all COVID related expenses had to b incurred between March 1 and December 30, 2020.

What was the process for determining the proposed uses of Acton’s CARES funds?

On May 26 the Board of Selectmen approved two initiatives to be funded from the Town’s CARES allocation. The first was $50,000 for a rental assistance program for Acton residents. The program would provide from $350 to $800 per month for Acton residents demonstrating lost income due to COVID-19. The Town’s rental assistance program is separate from but has worked alongside the United Way of Acton Boxborough’s assistance program which has raised $175,000. The Department of Revenue released the $50,000 for the rental assistance program.

The second initiative was $100,000 for a Small Business Grant Program to provide grants up to $4,000 each for 25 small businesses with a physical commercial presence in Acton. 43 businesses were deemed eligible by the application deadline of June 15. On June 18 a lottery was held and 25 grant winners were selected and immediately notified.

But when the Town sought release of the $100,000 from its CARES allocation, the Department of Revenue refused while at the same time acknowledging that the Small Business Grant Program was an eligible use of CARES funds under federal guidelines. The Town appealed the decision without success.

In an effort to keep the business assistance program alive the Selectmen conferred with Town Counsel about using a small portion of the Town’s reserves to finance the program, which use would be contingent on Town Meeting approval of the appropriation. The Board voted to place a funding request for $165,604 on the warrant for the September 8 Special Town Meeting. The approval by Town Meeting made possible grants up to $4,000 to each of the eligible 43 small businesses.

With $40,000 of the initial $50,000 of funding for the rental assistance distributed, the Selectmen at their meeting on August 24 approved a second $50,000 for the rental assistance program to carry it through December. The Department of Revenue again released those funds.

Why provide public funds to private businesses?

The use of public funds to aid private businesses is an issue over which reasonable people may differ even in the best of times, never mind during the pandemic, when residents and businesses alike have contended with heightened stress and anxiety. In the run-up to Special Town Meeting, the Town’s Economic Development Committee voted 8-0 to unanimously support the Article, the Acton Finance Committee voted 5 to 4 not to recommend the Article and the Board of Selectmen voted 4 to 1 to recommend the Article.

There are some 600 unincorporated businesses in Acton, including businesses run out of private homes such as landscaping, contracting, consulting services, day care and art and design studios. The small business grant program targeted businesses meeting the following criteria: for-profit business, up to 35 employees, physical commercial presence in Acton, less than $1.5M in gross revenue, and demonstrated loss of revenue of 50% or more due to COVID-19. Local and national chains were ineligible. The 43 eligible businesses and many other small businesses in town are part of the fabric of the community, giving back to the community with cash and in-kind contributions in support of community activities and events throughout the year. The grant program is a show of support for members of our community during a very challenging time for everyone.

www.jonbenson.org