COCHRANE— Cochrane Council marked their first in-person meeting since Nov. 23 with a tentative step to help local small businesses struggling during COVID-19 through the creation of the COVID-19 Professional Services Grant Program.
Council voted unanimously to provide $20,000 to the program using funds from the Economic Development Reserve Fund at Monday's (March 8) regular meeting. The program will be administered by the Cochrane and District Chamber of Commerce.
Executive director of the Chamber Kelly Carson and Economic Recovery Task Force lead Mike Korman were on hand to explain what the grant rollout would look like.
The grant program is designed to help businesses negatively financially impacted by COVID-19. The funds will be used to help businesses that qualify for, or have received, financial support from provincial and federal pandemic relief programs through the use of an accountant or other chartered professional.
"Money is short. Money is tight. I think it's a huge step for the council to allow them to get involved in this, to work them through what is in these [funding] programs," Carson said. "These programs could possibly get them thousands of dollars that they're missing out on."
Carson noted to be approved for the grant program a business would have to qualify for provincial or federal funding support— A significant drop in revenue is tied to these qualifications.
"It has to be someone who is in need— They have to qualify based on a drop in revenue that is significant," Carson said.
He estimates businesses that would meet the criteria for the programs will have experienced a drop in revenue of 30 per cent or higher during the pandemic.
Businesses will be able to apply for grants through the Chamber of Commerce website for a maximum of $500 toward third-party professional services. The primary focus would be licensed bookkeepers and accountants with experience in applying to government support programs such as the Canada Emergency Wage Subsidy, Canada Emergency Business Account, Canada Emergency Rent Subsidy, Canada Recovery Benefit, Small and Medium Enterprise Relaunch Grant and others. The professionals will in turn assist businesses in understanding program details, collecting required information and preparing submissions for funding programs.
"They [businesses] can go to the professional person ... To say, 'I need help with rent,' or 'I need help with my employees getting paid,'" Carson said. "They would apply through whatever process with help from the professional services to see if they qualify."
Korman added the professional services will also help a business to understand the potential implication on taxes if they participate in provincial or federal funding.
"It's not about can I qualify for this program. It's, 'I've qualified for the program, I've taken the money, what are the implications on my business,'" Korman said. "This would be the small mom and pop shops that have one to 10 employees that run on shoestring budgets that maybe want to tap into the funding but don't have the time or the skill to do so."
He noted key learnings from applying for federal and provincial funding can be shared to better understand the challenges small businesses may face when seeking financial aid.
The grant is open to any business within the Town of Cochrane corporate limit with a current business licence— Businesses are not required to be a member of the Chamber of Commerce to qualify.
Grants will be provided to businesses based on a first-come, first-serve basis.
The grant program was inspired by a similar project that has found success in the City of Leduc, said Mayor Jeff Genung.
He spoke with Leduc Mayor Bob Young. Genung said Young praised the program as it benefited 87 businesses in Leduc and 37 Wetaskiwin businesses at an average cost of $600 each.
Genung said Young estimated the program was able to generate between $6,000 to $10,000 in funding from the province or federal government for each business. The City of Leduc spent an estimated $50,000 on the program.
"They felt that it was a very successful program for their community— It's a good return on the investment," Genung said.
He added the collaboration between the Town of Cochrane and the Chamber of Commerce is a welcomed partnership. Genung said he is grateful the Chamber can administrate the program and looks forward to seeing how the grant will rollout in the community.
"If it saves one business, if it saves one job I think that's a success," Genung said.
While it is imperative the Town support business during the economic crisis of COVID-19, said Councillor Marni Fedeyko, she questioned if the COVID-19 Professional Services Grant Program was the best option to offer support.
"Obviously, our business community needs all the help it can get," Fedeyko said. "The only thing I would ask council in support of this is that we actually have a mandate to help those that are most in need— Let's start with the businesses that are the most affected, the most challenged, the ones that have felt the most disparity and hardship."
Fedeyko added one of her major concerns is some businesses may see the grant program as an opportunity for support when they have not been as financially devastated by COVID-19 as others.
She asked that the grant focus on businesses that have been shutdown at least once during the global health crisis.
"Since we haven't asked actually the business community what actually would be beneficial ... This is my major concern with it— We have $20,000 to spend. Do I feel that this is the most beneficial way to spend $20,000 to help businesses," Fedeyko said. "If we're only helping 87 businesses I hope to God they're the 87 businesses that are the most affected."
For more information on the Professional Services Grant Program visit the Cochrane and District Chamber of Commerce website at cochranechamber.ca.
