Rock County is expecting nearly $1 million in government aid next week through the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
The city of Luverne is expecting $355,000, and other Rock County small cities and townships will also receive some aid under a distribution formula based on population.
Gov. Tim Walz announced Thursday he would use executive powers to release federal funds to Minnesota communities waiting for the aid.
The federal government passed the CARES Act earlier this year and three months ago distributed funds to the states in order to provide economic relief for hardships caused by business closures during the pandemic.
Since then, Minnesota lawmakers worked out logistics for distribution but failed to act on it during their regular session and the special session that ended last week, prompting intense criticism from local governments statewide.
Governor Tim Walz announced Thursday a plan to distribute $853 million in relief to communities across the state impacted by the COVID-19 pandemic.
Of that amount, $841 million will be distributed to Minnesota counties, cities, and towns to support local government coronavirus relief efforts.
Rock County commissioners met Tuesday to prioritize how the CARES money will be distributed (see the related story) and Luverne Mayor Pat Baustian said the city’s emergency funds will likely be distributed through the Luverne Economic Development Authority, which is formalizing a program to make the funds available.
“We have been looking at the best, most fair way to distribute the money to Luverne businesses,” Baustian said Thursday.
”There are rules that come with it. … So, we have to look at those rules and make sure.”
One avenue under consideration is to apply the emergency funds to businesses’ utility bills as a form of direct relief.
Local governments across Minnesota are meeting to consider the amounts they’ll receive and the guidelines they need to follow in distributing the funds. In broad terms, the funds should support local government services as well as grants to businesses, hospitals, and individuals impacted by COVID-19.
The CARES Act requires that payments may only be used to cover costs that are necessary expenditures incurred due to the public health emergency since March 1.
Food shelves get CARES Act support
Additionally, $12 million will be allocated toward food shelves, food banks and other emergency services to help combat hunger across Minnesota.
The funding was authorized under the federal Coronavirus Aid, Relief, and Economic Security (CARES) Act.
“As we work to support the health and safety of all Minnesotans during the COVID-19 pandemic, we are also taking steps to build a stronger and more equitable economy,” said Gov. Walz.
According to information from the governor’s office, about 300,000 Minnesotans have visited food shelves each month since the pandemic began, representing a 30-percent increase over typical visits.
Food banks are distributing approximately 2.4 million pounds of food per week, representing a 20- to 40-percent increase since 2019.
“This funding will bring much-needed relief to communities across the state as we continue to battle this pandemic together,” Walz said.
Small businesses, nonprofits top CARES aid list
Rock County Commissioners worked out details Tuesday morning to distribute $1.18 million of federal aid through the Coronavirus Aid, Relief and Economic Security Act.
Small businesses in Rock County will receive almost half of the funds (tentatively set at $500,000) through an application process yet to be finalized.
Commissioners will meet at 9 a.m. Tuesday, July 7, to finalize the application and policies governing the distribution process.
Tentatively business owners can apply for $5,000 grants starting on July 15.
Any business owner who suffered a financial loss since March 15 due to the coronavirus pandemic can make application.
Business owners made the priority list because funding sources are limited when compared to other entities on the commissioners’ list.
“The businesses — without these guys we don’t have an economy, we don’t have anything,” said Commissioner Jody Reisch.
About $175,000 is currently earmarked for nonprofit organizations, which would also need to apply for the aid.
The rest of the county’s allocation could potentially be divided among the area’s fire departments, public health, school districts and county expenses.
“We hope what we are doing is going to help,” said County Administrator Kyle Oldre. “And what (money) the cities and townships have will also help.”
County officials will present distribution plans at a 7 p.m. meeting on Tuesday, July 7, with leaders from the cities and townships in Rock County, many of whom have separate allocations from the CARES Act. (See separate story.)
Cities and townships have until Nov. 15 to allocate CARES funds, with any unallocated money returned to the county for distribution. Any unallocated county funds must be returned Dec. 1.
What each city, township will receive
By Mavis Fodness
In addition to the $1.18 million Rock County receives from the CARES Act, communities and townships with populations greater than 200 will also receive their own allocations.
Community allocated amounts include:
•Luverne (city) $355,983
•Hills $50,327
•Beaver Creek (city) $21,547
•Magnolia (city) $15,746
Township allocated amounts include:
•Luverne Township $11,550
•Beaver Creek Township
$9,275
•Martin Township $9,175
•Clinton Township $6,700
•Springwater Township $6,125
•Kanaranzi Township $6,000
•Mound Township $5,675
•Magnolia Township $5,025
•Rose Dell Township $5,025
The CARES allocations for the townships of Battle Plain, Denver and Vienna, along with the cities of Hardwick, Kenneth and Steen, are included in the amount allocated to the county. These townships and communities have populations under 200 people.