December 14th, 2024

City COVID relief goes to safety protocol

By COLLIN GALLANT on June 5, 2020.

Details of the first phase of city support for local business were announced Thursday by Mayor Ted Clugston.--NEWS FILE PHOTO

cgallant@medicinehatnews.com@CollinGallant

A first block of funds from city coffers to help businesses in the COVID era will help them alter operations to pandemic safety protocols.

Four weeks after money was earmarked, the details of an initial program offered through a local economic development agency were released on Thursday.

Small businesses could quality for up to $15,000 toward installing plastic guards, rearranging layout to help promote six feet of physical space, or other physical changes that could be outlined on a provincial risk assessment process.

That money comes from a $2-million fund earmarked by city council May 4 for grant programs awarded by Community Futures-Enter Corp.

The council motion lays out that the money would be distributed in $500,000 blocks over time and should be used to fill gaps that arise in relief programs from provincial and federal governments.

On May 20, Mayor Ted Clugston said the first phase of the local program was being developed and would hopefully be ready for early June.

“The day we announced it two weeks ago, they were swamped with calls that night,” said Clugston at a weekly press availability. “We’re trying to be specific with the tranches as they come out.

“The first tranche will help smaller businesses adjust to the new reality – personal protective equipment, everywhere you’re going nowadays you see plastic shields at retail locations and that may the reality going forward … We’re also not looking to offer a lifeline to a business that was on shaky ground before COVID, but (help businesses) thrive and expand.”

Details released this week state that the initial phase will cover to a maximum of $15,000 expenses incurred to June 1, up to 70 per cent of qualifying receipts and up to 100 per cent of receipts after June 1 based on quotes.

One third of the funds will be held back until final receipts are produced.

Criteria:

– Have operated in Medicine Hat with a valid business licence since at least March 1, 2019 and at the time of the pandemic began in early March 2020;

– Have gross revenue of less than $5 million and employ at least two full-time workers;

– Not be in current insolvency proceedings or six months or more in arrears with Canada Revenue to ensure “reasonable expectation of success and ongoing viability,” and;

– Have completed an Alberta Health hazard Assessment.

The money cannot be used to pay owner or staff salaries, on training costs or usual business equipment, and not-for-profit entities or professional service partnerships are not eligible.

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