City contributes $100K to help local small business recovery, continuity

(Above) Activity on Main Street is sparse, as most businesses remain closed due to the COVID-19 pandemic. - Reporter photo by Chris Barragy.

MBT announces $15K gift to North Iowa Corridor fund

by Marianne Gasaway

The Clear Lake City Council approved the city’s participation in a Small Business Recovery & Continuity Fund being formed by the North Iowa Corridor EDC Monday night.  The fund will allow small businesses to apply for grants to help meet expenses during the COVID-19 pandemic.

In addition to the $100,000 contribution from the City, MBT Community President-Clear Lake Tim Esbeck announced at the meeting that MBT will donate $15,000 to the Small Business Recovery & Continuity Fund.  Esbeck shared that MBT owners John V. Hanson and Mary J. Boman heard of the plan and especially appreciated its focus on helping small businesses during these difficult economic times.

“The Hanson Foundation, Hanson family and MBT are adding to the City’s $100,000 with a $15,000 contribution to the fund,” said Esbeck.  “We think this is very worthwhile and hope it will benefit many.”

The North Iowa Corridor Economic Development Corporation’s “Small Business Recovery & Continuity Fund” is designed to help small, independently-owned businesses with less than 25 employees with forgivable grants up to $5,000.

Chad Schreck, president and CEO of the North Iowa Corridor, told the Council Monday 248 pre-applications requesting $1.1 million were received for the grant by the April 17 deadline.  Seventy-seven applications, seeking $350,000, were submitted from businesses with Clear Lake addresses.  To date, 94 full applications have been turned in, with 29 from Clear Lake businesses.  The deadline for applications is Friday, April 24.

“Obviously, we have more requests than funds, so we appreciate private support and donations and we encourage more to close the

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gap,” said Schreck.  A tax-deductible donation channel to the fund has been established through United Way of North Central Iowa, he noted.

Two other initiatives approved by the Council Monday allocate $10,000 to the Clear Lake Chamber of Commerce to support and underwrite costs associated with enhanced “shop local” marketing efforts, as well as the purchase of Clear Lake Chamber Bucks for city employees and volunteer firefighters in recognition of their ongoing efforts for citizens.

The City will use 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, to make its contribution to the Small Business and Recovery Continuity Fund and other similar initiatives, according to City Administrator Scott Flory.

Earlier this month the Cerro Gordo County Board of Supervisors approved a $100,000 allocation toward the Corridor fund; the City Council in Mason City is scheduled to consider contributing $300,000 to the fund this week.

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