City opens fifth round of CARES Act grants
The fifth phase of the City of Nome’s CARES grants program is now open and the deadline for the fourth phase is approaching as the December 30, 2020 spending deadline draws near and an extension for the City to distribute funds in 2021 has yet to be granted.
Phase IV of the program, which has been open for weeks now, offers grants of up to $7,500 for businesses and nonprofits based in or around Nome. In the original version of the application, the money was intended for “safety improvements” to allow businesses and nonprofits to continue operating through the winter while maintaining social distancing.
This included any building modifications required to make distancing possible and the purchase of supplies such as masks and hand sanitizer. In a subsequent meeting the Nome Common Council expanded the program, allowing applicants to also use the money for utility bills, heating oil and propane.
Applications can be found on the city’s website, and all applications must emailed to manager@nomealaska.org, hand delivered to City Hall by November 30 or mailed to City Hall and postmarked by November 30 at the latest.
Phase V CARES grants are economic stimulus checks given to residents of Nome, including those living outside city limits. In order to be eligible, applicants must sign a statement claiming they “have been economically impacted by COVID19 and that these funds will provide financial relief.” Eligible adults can receive $500 each, plus $100 for each dependent child living with the adult. Adults must also fill out a W9 tax form, which is included in the application.
City Manager Glenn Steckman said the City has received 104 family applications so far and is anticipating to distribute about half a million dollars through the program, although he emphasized that was a very rough
estimate and the City was not sure how many people would apply.
Applications for the Phase V checks can also be found on the City’s website, and must be submitted via email, in person or through the mail by December 7.
The City also had a large portion of its CARES funding set aside for ventilation improvements at the Rec Center, although that money would need to be spent after the December 30 spending deadline set by the CARES Act, which Congress passed in March. “We are currently working with our congressional delegation staff to ask that an extension be given to Nome to spend a portion of its CARES money,” Steckman said. So far though, no extension has been offered, and the City will begin distributing funds originally set aside for the new ventilation system through Phase V checks, so as not to have leftover money come January.
Steckman added that there may even be a Phase VI program, if an extension is not granted and if the City still has CARES funding it needs to distribute before the new year. The December 30 deadline applies to businesses, nonprofits and other organizations that receive CARES funding from the City as well.
Nome Public Schools, the Nome Volunteer Fire Department and the Nome Volunteer Ambulance Department, for example, all received significant amounts of CARES funding from the City and will need to spend all of those funds before December 30.
Businesses and nonprofits that receive or have received funding are also required to spend that money before the end of December. Steckman recommended that businesses consult with their accountants to ensure they’re using their CARES funds appropriately.
After December 30, the City may be subject to a federal audit to ensure that its money was distributed appropriately. If an audit were to find any problems, funding recipients could then be sampled and audited as well, Steckman said.
The Phase V checks sent to individual citizens also need to be cashed before December 30, although the money doesn’t need to be spent on specific improvements, supplies or bills like the Phase IV business grants.
“There’s a difference for the stimulus being offered to residents, because that approach is to get folks to spend money in the community,” Steckman said. “Anything to help stimulate the economy or to help people pay bills, because the money is for those who have been fiscally impacted.”
He encouraged anyone experiencing COVID-related hardship to apply for the Phase V checks. Those with questions can email manager@nomealaska.org or call 443-6600 for more information.