Council considers initiatives to help businesses hurt by COVID-19 pandemic

(Above) By order of Iowa Governor Kim Reynolds, signs were posted Tuesday at local parks informing the public they are closed. - Reporter photo by Chris Barragy.

by Marianne Gasaway

The Clear Lake City Council has set Monday, April 20, as the date for a public hearing regarding the city’s participation in a Small Business Recovery & Continuity Fund being formed by the North Iowa Corridor EDC.  The fund will allow small businesses to apply for grants to help meet expenses during the COVID-19 pandemic.

The City Council is considering an initial financial allocation off $100,000 to help mitigate COVID-19 related financial losses that Clear Lake’s small, independently-owned, businesses and restaurants have suffered during the public health emergency.  Through the Small Business Recovery & Continuity Fund, the City would provide financial support to make forgivable grants of up to $5,000 available to Clear Lake-based, independently owned, small businesses.

The City would re-direct available dollars from its economic development fund, which was established with money the city received through the State of Iowa, as a loan payback, from a company many years ago, according to City Administrator Scott Flory.

“These are not property tax revenues and the use of these funds is restricted to economic purposes only,” stated Flory.

Under the tenants of the proposed program, the eligible business must meet various criteria such as: having been operational for at least one year; employ between not less than one, or more than 25 employees; demonstrate at least a 25 percent reduction in revenues due to COVID-19; funds must be used to cover payroll, rent, or working capital for the business to cover operational expenses.

At Monday’s Council meeting,  Chad Schreck, president and CEO of the North

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Iowa Corridor, told the Council Carroll, Iowa established a similar fund last week.

“By way of comparison, they (Carroll) has also given $100,000 to the program, and they had over 100 applications. I think they only had it open for just over a week, so it went really quickly,” said Schreck, noting that town also capped its grants at $5,000.  He added that priority will be given to companies which have been a part of the community the longest.

Approximately 65 percent of businesses contacted by the North Iowa Corridor EDC in the wake of the COVID-19 pandemic have expressed a need for financial assistance, according to Schreck.

Flory said he expects response to the fund in Clear Lake will be similar to what happened in Carroll.

“I think we will have more applicants than money,” he told the Council.  “We may revisit the needs again.”

Additional initiatives

The City Council will also consider two additional initiatives related to the COVID-19 pandemic at its April 20 meeting.  One would approve allocating $10,000 to the Clear Lake Chamber of Commerce to support and underwrite  “shop local” marketing efforts.  The funds would provide assistance to businesses who have been adversely impacted by government closures, such as restaurants with dine-in service, by promoting the availability of continued goods and services, such as delivery or pick-up options for food.

  Another initiative presented to the Council was the purchase of Clear Lake Chamber Bucks for city employees, including volunteer firefighters, in response to and recognition of their ongoing extraordinary efforts for the citizens.

“While many employers have allowed their employees to work remotely or placed them on paid administrative leave, the largely essential nature of the work done by City staff does not allow for the most effective performance of their work to be done from home or in most cases requires them to continue to be on the frontlines,” said Flory.  “The Chamber Bucks program supports local businesses who are members of the Chamber of Commerce.  This is a way the City can recognize its employees and staff, support the local business community during a difficult time, and support the Chamber program.”

The Chamber of Commerce has approximately 430 members; most accept Chamber Bucks.

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