READING, Pa. – Reading’s strategic planning committee of City Council heard recommendations Monday night on eligibility requirements for small businesses to apply for American Rescue Plan Act funds.
City Council is planning to allocate $2 million to small businesses, but Mayor Eddie Moran offered his plan on how his administration wants disbursements made.
Moran suggested allocating $1 million for businesses on Penn Street and $1 million for businesses elsewhere in the city.
“I’m making some recommendation of a separation of the $2 million for two different opportunities,” Moran said. “If we’ve lost businesses in downtown as a consequence (of the pandemic), this is an opportunity to revitalize the downtown area specifically.”
Moran is advocating for businesses on Penn Street or for ones willing to relocate to Penn Street be eligible to apply for maximum grants of $50,000 each.
Business outside of the Penn Street corridor would be eligible to apply for maximum grants of $25,000.
“This way, we could bring more business attention to the downtown, whether assisting (existing) businesses or businesses that want to relocate to the downtown Penn Street area,” Moran said.
Dividing the funds using Moran’s recommendations would allow 20 businesses on Penn Street and 40 businesses elsewhere in the city to receive funding.
Director of Finance Jamar Kelly explained all businesses applying for ARPA funding would have to submit business plans to break down how the money is being proposed to be spent.
The strategic planning committee also reviewed recommendations made by City Council’s solicitor on the eligibility criteria for small businesses to apply for ARPA funds.
Those eligibility requirements would 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; and conducting business that is not restricted to patrons over the age of 18.
One other requirement that a business is not facing any litigation was challenged by the administration.
“We might want to qualify that there be some further review that doesn’t just cut off any organization that facing any litigation,” Kelly said. “The city of Reading has both serious and frivolous (lawsuit) cases all of the time.”
City Council members did not raise any objections to the recommendations made by the administration.
The administration will now compose a proposed ordinance that will eventually have to be adopted at a council meeting before the application process can begin.
