NORTH ADAMS, Mass. — Small businesses that have seen their revenue drop because of COVID-19 maybe eligible for forgivable loans of up to $10,000.
The city of North Adams and the Berkshire Regional Planning Commission are administering separate microenterprise loans to assist low- and moderate-income business owners cover regular costs such as rent, staffing and utilities.
North Adams has $108,000 in total to disburse over the next few months. BRPC's microenterprise program is working with the towns of Adams and Lenox to cover North and South Berkshire (it does not include North Adams).
The funds are from the federal Coronavirus Aid, Relief, and Economic Security (CARES) Act and the Community Development Block Grant.
Amy Shapiro, business development director for the Franklin County Community Development Corp., which is helping administer the city's program, said they are trying to get the word out because small-business owners may not think they are eligible.
"A lot of the issues is that people incurred expenses while they were shut down ... they're trying to figure out how to dig themselves out of that. And some of them haven't recovered and they're trying to come up with a plan," she said. "Some are making money, but what I'm hearing is many of them are making 25-30 percent of what they used to so it's challenging to cover their basic expenses."
The program looks at income eligibility based on U.S. Housing and Urban Development guidelines based on 2019 adjusted income, or the last eight weeks of income.
"We know that business owners are not receiving the income that they previously did last year due to COVID," she said. "So because their income is less, they might qualify for this eight-week threshold."
Microenterprises are businesses with five or fewer employees including the owner. To apply, household income must be less than 80 percent of the HUD median using 2019 taxes or the last eight weeks of income; the business must provide goods or services to more than one client or customer, have sales more than $20,000 a year, and be in good standing (its taxes paid or on a plan) with its municipality; and have been established prior to Jan. 1, 2019, and operating or actively planning to reopen under the Reopening Massachusetts regulations.
The first grant application deadline for North Adams is 5 p.m. on Nov. 2. Shapiro said the program will run in two-week cycles until the money is gone on a first-come, first-served eligibility basis.
The Franklin CDC is also administering a $600,000 grant program for Franklin County covering 23 towns and is currently in the reviewing phase.
"That's kind of why it works really well to do this for North Adams because we've got a great system," Shapiro said. "We have a team of reviewers who will evaluate eligibility, will review the applications and then make a decision on the award."
These will be recommended to the city of North Adams, which will make the final awards. This keeps the city at arm's length and avoids politics.
"This funding will help business owners meet critical needs in our community," said Mayor Thomas Bernard in a statement. "We know there is a significant need in the community, and while this program will not be able to fund all of the need, it will connect business owners to technical assistance and also provide us with a documented need for future funding possibilities."
In addition to business and personal income tax information and profit and loss statements, business owners will also have to explain what the money will be used for and prove that it was used for expenses. That's what makes the COVID Recovery Micro-Enterprise Assistance Program a forgivable loan rather than a grant.
Shapiro pointed out that it is taxpayer money after all and that applicants should have some "skin in the game" to ensure that its being used properly.
"Part of what our due diligence is for the Franklin CDC is that we have to prove that what the business need was reasonable, and they spent it on what was useful to them to sustain them," she said. "Because it's all about helping businesses stay healthy and in our communities, and be employing people."
If you would like to contribute information on this article, contact us at info@iberkshires.com.
Your Comments
iBerkshires.com welcomes critical, respectful dialogue. Name-calling, personal attacks, libel, slander or foul language is not allowed. All comments are reviewed before posting and will be deleted or edited as necessary.
No Comments
Summer Course Registration Now Available at MCLA
NORTH ADAMS, Mass.—Massachusetts College of Liberal Arts (MCLA) announced that registration for summer class sessions is now open.
Registration is open to MCLA students, interested community members, high school students, those pursuing a master's degree, and college students wishing to transfer credits back to their home institution.
MCLA is offering two summer sessions, held in-person and online. Session A runs May 20 through June 28, 2024, and Session B runs July 8 through August 16, 2024. The College has more than 50 online courses to accommodate the schedules of working adults, undergraduates, and high school students.
Summer classes are a way to get ahead in a major or minor, work on general education requirements, explore a new interest, catch up on coursework, get closer to graduation, or focus on a particular subject by taking only one class.
Summer sessions can help college students home for the summer to complete prerequisite courses for their degree.
Learn about course offerings, review the schedule and register now at mcla.edu/summer.
Taylor Garabedian scored a team-high 22 points and grabbed five rebounds, and Abby Scialabba scored 16 points for the ‘Canes, who got 16 points, nine rebounds and four assists from Ashlyn Lesure. click for more
Concerns over the failing structure's proximity to its neighbor — just a few feet — means the demolition underway is taking far longer than usual. It's also been delayed somewhat because of recent high winds and weather.
click for more
On Saturday afternoon at Lowell’s Tsongas Center, the Hurricanes will take aim at Division 5 State Championships in girls and boys basketball. click for more
The music was nearly drowned out by the honking of horns as motorists signaled their support to the picket line at Massachusetts Museum of Contemporary Art on Thursday.
click for more
Justyna Carlson, longtime member of the Historical Society and chair of the city's Historical Commission, was posthumously honored with induction by Mayor Jennifer Macksey on Tuesday, during Women's History Month.
click for more
The students can now reach the town field through a rough path in the woods and walk the field until crossing the road or walk along the sidewalk-free Cross Road, a heavily traveled way with no shoulders. click for more