Skip to main content

City approves $100,000 for business pandemic relief

By
Lori Sorenson

More help is on the way for Luverne businesses that lost revenue due to pandemic restrictions.
The Luverne Economic Development Authority approved $100,000 for a grant program to assist the hardest hit local small businesses.
“Restaurants were feeling a big pinch,” Luverne Mayor Pat Baustian said at the Monday morning LEDA meeting. “This will help them get their employees back and get their feet under them.”
According to the resolution that was approved unanimously, grants will be awarded monthly from January through April based on each business’s city utilities costs
The identified businesses already received CARES Act funds through earlier programs, and all they have to do is sign an acknowledgement verifying the following:
•they are small businesses located in the city of Luverne that sustained costs due to required pandemic closures.
•they were operating during the 12 months prior to March 1, 2020.
•they continued to operate as allowed by COVID-19 restrictions.
•they can demonstrate COVID-19 related losses since March 1, 2020.
According to the LEDA resolution, restaurants and other businesses required to be closed for four weeks during November and December 2020 will receive a grant payment equal to the actual utility costs for that business during the month of December 2020 and billed in January 2021.
Initial checks will be processed in January following receipt of the signed certification letter. Grant payments will be made monthly through April 2021 until the allocation is used in full.
Other small businesses that were affected to a lesser degree by pandemic-related closures can receive grants equal to 50 percent of their utility costs.
Luverne Finance Director Barb Berghorst said she expects 10 businesses will receive grants equal to 100 percent of their utility bills, and another 41 businesses will receive grants equal to 50 percent of their utility bills.
She said the city previously paid $97,442.73 to 74 businesses for the EDA Stop Gap Loan. The city also distributed $355,985 in CARES Act funds to 52 businesses who certified they had direct COVID-19 losses to their business.
The $100,000 city grant funds were moved to the LEDA from the city’s electrical utility funds.
“We are so lucky to own our own electrical utility,” Baustian said Monday. “It gives us an edge in being able to participate in something like this.”
A review committee will consider requests or applications from other businesses not originally determined to be eligible for the latest round of city pandemic relief.

You must log in to continue reading. Log in or subscribe today.