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true true true true true

Bloomington City Council Set To Vote On Plan To Provide $2M In Business Relief

By Ethan Burks

Posted April 2, 2020

Aerial photo of downtown bloomington

Bloomington businesses could see funds from the city as soon as next week, if the council vote passes on April 7. (Seth Tackett, WTIU/WFIU News)

Bloomington City Council will hold a final vote on April 7 that could offer businesses financial relief during the coronavirus shutdown.

“Our employee health insurance, our utilities, our rent and our payroll are the critical bills that need to get paid while we’re closed,” owner of Nick’s English Hut Susan Bright says.

City council members met Wednesday night to discuss a draft proposal from Mayor John Hamilton’s Economic Stability and Recovery Working Group (ESRWG).

The draft includes taking $2 million from the city’s food and beverage tax revenues, and giving it to restaurants and other small businesses that support tourism.

READ MORE: Portion Of Monroe Co. Food And Beverage Tax To Support Local Business During Shutdown

Other small businesses that don’t collect a food and beverage tax could be eligible for funds from the Bloomington Urban Enterprise Fund (BUEA), which has $500,000 available, or through other funds noted in the proposal.

The ESRWG’s draft highlights three main COVID-19 financial aid options: Small Business Bridge Loans, Micro Business Loans and Blended CDFI Loans.

“The biggest gap we have right now is a gap of timing and the availability of resources coming from the federal government,” Director of the city’s Economic and Sustainable Development Alex Crowley says. “Tactical bridge loaning and grants could be a way to fill that.”

Many councilmembers were concerned the food and beverage tax funds, if allocated, could prevent businesses from receiving other financial aid from the state and federal governments.

City corporation counsel Philippa Guthrie says the State Board of Accounts (SBOA) decides if the funds are legal or not.

“We asked them [SBOA] for an opinion on this,” Guthrie says. “They came out with a memo that applies statewide and I think it clearly supports the city council approving this use.”

The ESRWG says it will put together a final draft that will be finished by Monday, and then city council will cast a final vote on Tuesday April 7.

For the latest news and resources about COVID-19, bookmark our Coronavirus In Indiana page here. 

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