UPDATED: City creates reimbursement program for COVID-19 expenses
Lake City businesses and non-profits can be reimbursed up to $500 for qualifying COVID-19-related expenses under a program approved by the city council on Aug. 10.
The council voted unanimously to use up to $40,000 of the money it’s receiving through the federal Coronavirus Aid, Relief, and Economic Security (CARES) Act for the grants. That’s a little more than 10 percent of the $390,000 the city received through the act.
The Lake City Economic Development Authority (EDA) recommended the program, which reimburses businesses or non-profits for protective supplies like plexi-glass, masks, and hand sanitizer purchased between March 1 and Oct. 2 of this year.
Payroll is not eligible for reimbursement, nor are any costs already being reimbursed through another COVID-19 assistance program, according to EDA Director Kjell Alkire.
“Think about all the plastic that we have between us and any customer service rep, point of sale, all of those kinds of moments,” Alkire said. “Those are unexpected, unbudgeted, and folks have made the investment in order to comply and to keep their employees safe, to keep our community healthy, and this is just a modest assistance for them.”
Alkire said he’s contacted 11 businesses and organizations to find out whether they would welcome the program.
“The response from smaller businesses was: ‘You know $500 would be really great right now.’”
For many, the reimbursement won’t cover all the investments they’ve made, he said. Some medium and large businesses have spent much more than $500 but indicated they wouldn’t be interested in a program this small.
The money is enough to provide $500 to 80 businesses or non-profits. If some have reimbursable expenses less than $500, that number could increase.
Leftover funds would revert to the city on Oct. 2 to give the city time to find a use for them before they would have to be returned to the county.
The application is available online at https://forms.gle/7D3yt6EJzbAfDYkm7. People who want more information can contact Alkire at kalkire@ci.lake-city.mn.us or 480-406-3155.
With its program, the city joins at least one other local unit of government using some of its CARES Act funding for direct aid.
Goodhue County has earmarked funds for homeowners and renters as well as businesses (see related story).