Reading City Council closer to finalizing plan for ARPA grants to small businesses

Jun. 9—A proposal that would allocate $2 million in funds from the American Rescue Plan Act to support small businesses is taking shape.

City Council's strategic planning committee recently reviewed recommendations by the city's legal team, Mayor Eddie Moran and his administration regarding grant eligibility and other requirements.

"It's evident that there is a pressing need for this type of assistance," Moran said. "The discussion surrounding small-business grant opportunities has been a significant focus for many individuals. Finally, after months of deliberation, we are seeing progress in the dialogue."

Council Solicitor Michael J. Gombar Jr. circulated a list of preliminary recommendations to initiate the discussion. The ideas, he said, are based on his research into similar programs implemented by other cities.

Gombar suggested making the grants available only to city businesses that have not received pandemic-related assistance from other sources. In addition, he said, applicants must be able to demonstrate a drop in revenue attributable to the COVID-19 pandemic and have had 25 or fewer employees prior to 2020, among other requirements.

Moran proposed dedicating half of the $2 million reserve to existing businesses on Penn Street or those willing to relocate there. Under the mayor's proposal, the remaining funds would be available to businesses in other parts of the city. The mayor also suggested that maximum grants of up to $50,000 be given to businesses on Penn Street and up to $25,000 to businesses located off the city's main street.

"This way, we can attract more attention to the downtown area," he explained, "whether it's assisting existing businesses or encouraging businesses to relocate specifically to the downtown Penn Street area."