READING, Pa. – Reading City Council began reviewing its proposed plan on how to distribute $2 million in American Rescue Plan Act funds to small businesses during a strategic planning meeting Monday night.
Businesses will have to apply for ARPA funding and submit a business plan to break down how the money is proposed to be spent.
Finance Director Jamar Kelly said the administration hopes to have the application available on the city website by Aug. 1.
A technical assistance webinar is being planned to be held virtually on Aug. 18.
Kelly said the application deadline is expected to be on Sept. 29, followed by a period of review, with final decisions on allocations made by City Council.
Kelly said he expects funding decisions to be announced during the month of December and agreements to be signed in January.
Some of the eligibility requirements will include:
- Being in business prior to March 3, 2020.
- Realizing a drop in revenue directly attributable to the COVID-19 pandemic.
- Having 25 or fewer employees.
- Being licensed to do business in the state and in the city.
- Having a business that is not restricted to patrons over the age of 18.
Councilwoman Melissa Ventura requested that a requirement be removed that businesses did not receive any other pandemic-related funding.
“The cost of goods, supplies and utilities, due to inflation, and employees downtown still working hybrid schedules have had a major negative impact in our small businesses,” Ventura said.
“Small businesses are struggling to keep their doors open and stay afloat,” she continued. “Our duty is to do everything in our power to ensure that all our businesses in the city thrive. Their success is our success.”
Ventura added that she has gone downtown to speak to businesses and hear the concerns and that she learned most of the small businesses have received some type of pandemic funding.
Councilwoman Marcia Goodman-Hinnershitz said businesses hit by the pandemic are most likely just getting back on their feet and are now having new struggles.
“So I wonder whether this kind of allocation is not so much pandemic-related, but support for small businesses,” Goodman-Hinnershitz said. “And that opens up a whole other discussion, because is it the role of city government to support small businesses? They are vital for our economy, but is that the role of city government?””
Councilman Chris Daubert said he would not support removing the requirement that a business did not receive other pandemic funding.
“I think it’s incredibly important to outreach this to the businesses that are not the usual crowd,” Daubert said. “I wouldn’t support it, at least as an initial offering.”
Councilman Chris Miller said he has mixed feelings.
“I’m sitting here thinking that there are many different types of businesses with different needs,” Miller said. “Obviously, a restaurant that has several multiple people working as servers, who were not able to work, would have more of a hardship than somebody who was a single-owner business.”
“I don’t know if there’s a way that we can sort through all this to decide which is realistic, which deserves more,” he continued. “I understand both sides, but I just think as council, we just need to be fair to all businesses, and maybe there’s another part to this process that needs to be looked at before the money is awarded.”
Goodman-Hinnershitz said it will be important to know what the city’s investment will do to help the businesses.
“Is it going to be more employees?” she questioned. “Is it going to be a way to strengthen the economy of the city? I think it’s not a matter of just putting money there. I think it would be good to analyze who received pandemic funding and what were their outcomes.”
Council president Donna Reed said she believes that outside of the pandemic issues, the biggest negative impact for the downtown businesses is parking.
“I think we have to seriously look at meter parking time frames and maybe taking out some meters,” Reed said. “More than COVID, parking is what is hurting and destroying our downtown businesses. So I want us to be very proactive in thinking about where the meters are, and maybe it’s time to remove some of those meters.”
“I think that’s a whole lot more critical than any of this for long term sustainability,” she added. “I would like to see some action early this fall and make parking less of a punitive situation and more of a positive for our downtown businesses.”
Council will have the opportunity for more discussion on the ARPA funding requirements at its next committee-of-the-whole meeting before a resolution is introduced.
Council will need to approve the resolution before the application process can begin.
