Galt small businesses to get COVID assistance
GALT — Last year, City of Galt staff presented a plan for distributing the first round of American Rescue Plan Act funds received. One of those plans was the distribution of $1.3 million for small businesses affected by the COVID-19 pandemic.
In June, 550 small businesses in Galt will finally have the opportunity to apply for those funds.
Amy Mendes, the city’s economic development manager, said that of those 550 small businesses, 250 are home-based.
Another 200 are “targeted” industries such as hospitality, entertainment or recreation, restaurants, personal services like salons, and day-care facilities. The remainder are retail businesses, she said.
Beginning June 1, Galt businesses will have 30 days to apply for the grants, and each home-based business will receive a flat $500 grant.
The amount received by the other two types of businesses will be based on the gross revenue they earned in 2019, Mendes said.
If a “targeted” business earned between $1,000 and $100,000, it would be eligible for as much as $10,000. If it earned between $100,000 and $1 million, it could receive as much as $15,000, and if it earned between $1 million and $3 million, it may receive as much as $25,000.
The remaining businesses would qualify based on similar gross earnings, and receive as much as $5,000, $10,000 and $15,000, respectively.
Mendes said business must be in good standing with the city to qualify, possess a valid business license, have a current certificate of occupancy where applicable, must be in compliance with all zoning requirements where applicable, must be current on all city bills and obligations and not subject to any liens or city judgments related to the business.
They must also have been in operation as of March 1, 2020 and still be in operation, earned less than $3 million in 2019, and had verifiable COVID-related net revenue loss.
Targeted business must have employed less than 40 full-time workers, and the remaining businesses must have had less than 30.
If there is not enough funding for all the businesses that apply, Mendes said there will be a random drawing to select grant recipients.
If not enough businesses apply, staff may reopen the application process or return to council to discuss modifying process to get more businesses to do so.
If there are still funds remaining, staff would return to council to discuss other options to further assist businesses.
“In talking to a lot of the jurisdictions that have gone through this, they have modified their programs numerous times,” she said. “So they would open it up and see what some of the issues were with people qualifying, if there were problems with different businesses being able to submit information, or had reservations about certain things.”
Galt Chamber of Commerce president Bonnie Rodriguez worked with Mendes and the city to develop the program.
She said she had been in contact with other jurisdictions in the region, and said Elk Grove did not get enough businesses to apply for its assistance program last year.
“There are businesses out there that are not going to apply,” she said. “You’re not going to get rid of that money this first round. Businesses are not going to trust it. They’re going to hear it once and forget about it, then come back and complain and say that they never heard about it. That’s just the nature of people and we all do that.”
Rodriguez said the local businesses that really want the grant money will work hard to do so. However, the city can’t do anything about the businesses who fail to act on the opportunity.
The council approved the assistance program by a 4-0 vote. Councilman Rich Lozano was absent.
“I’m happy to see the program finally rolled out, because people have been asking, and it’s a long time coming,” Mayor Shawn Farmer said. “I would like to state for he public that I and other council members on this dais who are business owners do not qualify for this program because of our positions.