Gig Harbor will divide $308,000 in federal aid among 205 small businesses
The Gig Harbor City Council decided last Tuesday that a $308,000 federal grant for pandemic relief will be divided into $1,500 allotments for as many as 205 businesses.
To qualify, businesses will have to have a city license, provide proof of hardship, and have fewer than 10 employees. If more than 205 businesses apply, a lottery will be used to select the winners. If fewer than 205 apply, the excess fund will be equally divided.
Many Gig Harbor business have been forced to close or reduce hours due to the statewide shutdown to reduce the spread of the COVID-19 virus. Restaurants have gone to home takeout-only and a few retail stores have tried curbside sales, but small business in general have been suffering.
The decision May 26 decision followed considerable debate among council members about the best way to use the money, which comes through the state from the federal CARES Act.
If it were simply divided among the 1,465 businesses in the city, each would receive only a little over $200, noted council member Tracy Markley.
“So what would be the point?” she asked. “We have to have a minimum amount that will actually be impactful to these businesses.”
In the end, the council decided to limit the aid to the city’s smaller businesses, those with 10 or fewer employees. No one was quite sure how many there are of that size.
The city hopes to post application forms online in about two weeks, said City Administrator Bob Larson, either on the Gig Harbor website or that of the Pierce County Department of Commerce. There will be a one-week portal fpr applications.
Larson said applications will be vetted to make certain each is actually a local business.
“We want to 100 percent identify these folks as legitimate, Gig Harbor businesses,” he said.
May DesMarais, executive director of the Downtown Waterfront Alliance, said Monday she expected the reaction from small businesses to be appreciative.
“Any assistance will be beneficial at this point,” she said. “We need to support our small business, so I am pleased the city can do this for them. Most of my businesses do have less than ten employees with the exception of the restaurants. I know it will be really beneficial for them.”
In other business, the Gig Harbor City Council:
Received an update from Mayor Kuhn about a conversation he had with Governor Inslee regarding the stay-at home-order. Kuhn asked Inslee to let Gig Harbor move forward with the COVID guidelines, referring to the facts that there have only been 53 cases total in the city. Kuhn added that there have only been two new cases in 35 days, and no new cases for 11 days. Governor Inslee said he doesn’t want cities breaking off from counties when it comes to advancing through COVID.
Adopted an ordinance which provides council with the ability to add items to any council study session by providing the city with five working days notice. The ordinance also specifies that agenda and meeting material for study sessions should be posted online at least four calendar days before each meeting.
This story was originally published June 3, 2020 at 12:58 PM.