The interest level is high for local businesses one day after the city announced funds to support the local economy, which has suffered due to the pandemic.--NEWS FILE PHOTO
cgallant@medicinehatnews.com@CollinGallant
Interest is high in potential grants from a city fund to support and bolster the small business sector as the economy relaunches from pandemic restrictions.
But, business operators and entrepreneurs will have to wait until the parameters are set by the city to find out more details about the program paid for by the City of Medicine Hat and administered by Community Futures Enter-Corp.
Sean Blewett, the general manager of the business development agency, told the News on Tuesday morning that he was already fielding calls about the program announced late Monday evening.
“We’re both really eager to get into the work of supporting small businesses, right now we’re getting down to developing the program,” said Blewett. “It’s the city’s timeline.”
The city will provide up to $2 million from reserve funds, in $500,000 blocks over time as the program carries on and needs are evaluated, according to a city press release.
As yet there is no public statement or outline about who will qualify, whether amounts are capped, or what the money could be used for.
Mayor Ted Clugston said on a teleconference with reporters after Monday’s council meeting that he felt costs such as salaries, rent or utilities would likely not be considered as various federal and provincial programs already address those areas.
On Tuesday he told reporters that work was underway to determine how the money would be targeted to do the most good.
“We’ll be working with business groups to some sort of policy, a framework, to see how the money will be dispersed, whether it be through loans, grants or a combination, we’re still working on that,” said Clugston.
“This is aimed at new business and existing business – perhaps a business that has a strong balance sheet, but could use the downturn to do a capital expenditure.”
“I think the sky is the limit on this one.”
Clugston, city CAO Bob Nicolay and Invest Medicine Hat general manager Jason Melhoff met on Tuesday morning to discuss the matter among other issues.
As well, Nicolay’s office has access to $1 million to put toward substantial economic development efforts and the ability to move ahead developing contracts to bring in new business and investments.
City council voted to release $8.2 million in reserve funds on Monday to negate a planned property tax increase across all classes, fund the economic plan and earmark $1 million for charitable causes.
Community Futures is perhaps best known for working with start-ups and entrepreneurs on business planning and securing initial financing, but Blewett said business growth is its specialty.
“Most of our clients are existing businesses, but we do provide a lot of support for startups,” he told the News. “A number of our programs are for companies that are growing or expanding.”
