Shawano offering emergency grants for businesses

SHAWANO — The city of Shawano is offering an emergency grant program to help local businesses with occupancy costs during the economic shutdown being forced by the COVID-19 pandemic.

The temporary relief program is designed to assist small businesses with immediate grant assistance of up to $5,000 to help cover occupancy expenses for up to 60 days — including rent, mortgages, utilities, insurance and other property-related business expenses.

“Businesses are struggling,” Mayor Ed Whealon said. “Even though the federal money is out there and the banks have been working with a lot of the businesses, there are a few that are falling between the cracks. We wanted people to reach out and help keep them going if we can.”

Federally funded programs, including the Economic Injury Disaster Loan (EID) and the Paycheck Protection Program (PPP), have been made available to small businesses.

However, both of those programs quickly ran out of money due to the demand, leaving small businesses who weren’t first in line out of luck.

The PPP is expected to get another financial boost from Congress, but the EID program, which was intended for such things as hurricanes and tornadoes, isn’t expected to be replenished for COVID-related assistance any time soon.

The city assistance program is intended to help supplement the federal programs and to further assist businesses that have already either applied for the EID or the PPP, or can provide proof that they intend to apply when additional PPP funds become available.

Whealon said he has heard requests from a number of businesses, as have city council members, asking whether there was any help the city could provide.

“The council is concerned about small businesses in the community that may need a little help to ride this out,” he said. “We’re trying to do everything we can.”

Whealon praised the community’s response in the face of the pandemic and economic shutdown.

“Everybody’s been so supportive and understanding,” he said. “I think people are getting frustrated, and I understand that. But the community has been great as far as supporting businesses when they can.”

Whealon said those businesses have supported the community and charitable organizations through fundraisers and other activities, and now it’s time to give back to them.

“It’s our time to step up and support them, too,” he said.

City Administrator Eddie Sheppard said the business community is the city’s life blood.

“Businesses all over the country are getting hammered right now, and it’s going to put a lot of them in jeopardy,” he said. “We feel the need to support our community the best we can, and we have the ability because we have these well-performing TIF (Tax Incremental Finance) districts to try to do something.”

TIF districts are areas where municipalities invest in infrastructure, such as sewer and water, to attract development where it might not otherwise occur, or to make improvements, such as eliminating blight.

Whatever increase in tax revenue that results from development in those districts goes to paying back the debt the municipality incurred from making improvements to the district. However, that money can also be used for civic improvements or financial incentives for development.

The money for the city’s temporary grant program is coming from TIF District 6, which has about $400,000 available for city projects. It’s not known yet how much of that will be needed.

“We’re waiting and seeing what kind of response we get,” Sheppard said. “We think it could be quite extensive.”

Sheppard noted that many banks are already deferring mortgage payments, but those payments will still have to be made eventually.

He said the city’s assistance program is intended to provide businesses with liquid funds in the meantime.

The city’s application for assistance will also ask whether businesses have bank loans with CoVantage Credit Union, which has gotten $1.2 million to offer small grants and loans.

“We can make sure they’re aware that, if they’re part of CoVantage, they should also be looking into those funds as well,” Sheppard said.

The state’s Safer at Home order, which has been extended to May 26, is facing a court challenge, but the results will not have any impact on the city’s assistance program, Sheppard said.

“The reality is, even if you flipped the switch, it’s not going to return to normal just like that, overnight,” he said. “There’s going to be a lot of people that still aren’t going to go out. There’s going to be a lot of things that are still going to be dragging down these businesses. Even if we can help for those 60 days as things are coming back, I think the need is still there. The council believes the need is still there.”

Information will be posted on the city’s website, https://www.cityofshawano.com, starting Friday morning on how to apply for assistance. Businesses will be able to download an application form.

To be eligible for the program:

• The business must be located within the city limits.

• It must be current on all real estate and personal property taxes.

• It must provide proof of application to the Federal Economic Injury Disaster Loan Program (EID) or the Paycheck Protection Program (PPP), or proof of intent to file for either program.

• It must provide previous 12-month financial statements (profit/loss statements, balance sheet), or if not in business for previous 12 months, must provide most up-to-date financial statements.

• It must provide documentation of previous two month’s occupancy costs.

• It must provide a two-month budget projection for May and June 2020.

All applications and required documents should be submitted to Eddie Sheppard, City Administrator, by email to esheppard@cityofshawano.com.

Applications are due by 4 p.m. Monday, May 4. The city will immediately evaluate applications and determine grant eligibility by Friday, May 8.

Businesses that have been deemed non-essential and been closed by the Safer at Home order will receive special consideration.

tryan@newmedia-wi.com