Maysville is offering small businesses within the city a helping hand as the city begins to plan for post-COVID-19.
The idea originated with Main Street Director Caroline Reece and Maysville Mason County Economic Development Director Owen McNeill who were searching for a way to help small businesses as they face economic hardship because of the pandemic. They approached City Manager Matt Wallingford with their idea.
“My first concern was “do we have the money?” he said. After discussing the issue with City Comptroller Penny Standfield, he learned there in fact a $25,000 allocation in the city budget for a revolving loan fund that has not been utilized.
“Small businesses are a major asset to the Maysville community. In these trying times, the city wants to step up and offer some assistance to the many local businesses we have,” said Wallingford. “We have these funds designated for economic development initiatives and in times of crisis, we must all do everything we can to support and retain our small business community.”
The city’s new program, the Maysville Small Business Assistance Program will offer small, non-franchised businesses within city limits $1,000 forgivable loans to be utilized for rent, mortgage and/or utility expenses incurred during the pandemic. The loans are targeted to businesses with two to 15 employees.
Wallingford said other cities in Kentucky, such as Ft. Mitchell, Paducah and Covington, are implementing similar small business support programs.
“Maysville Main Street Director Caroline Reece, MMCIDA Director Owen McNeill and I have been reviewing these programs, along with assistance from City Comptroller Penny Stanfield and Buffalo Trace Area Development District Executive Director Amy Kennedy,” Wallingford said. “The release of these funds has zero impact on the city’s budget since the monies were already available through our local Revolving Loan Fund.”
According to Wallingford, beginning May 6 at 1 p.m., applications will be available from the city’s website or for pick-up by appointment at City Hall. The funds will be released on a first-come, first-served basis from those applicants that fully meet the eligibility criteria. Eligibility criteria for the Maysville Small Business Assistance Program include: Business must be categorized as a non-essential business type forced to close or reduce services as a result of the Executive Orders issued by the Governor.
— Business may request funds to assist with expenses limited to rent, mortgage or utilities.
— Business must have been opened prior to January 1, 2020
— Business must have at least 2 and no more than 15 employees
— Business must be non-franchised
— Business must remain in business in the City of Maysville at least 1 year beyond loan award for the option of the loan to be forgiven
— Loans of up to $1000.00 will be issued as a 4 percent loan, with principal and interest forgivable if all requirements are met as set forth
— This loan is a first-come first served grant. Once funds have been dispersed, the grant cycle will be closed. The application process does not guarantee loan award.
All applications must be returned by email to mattwallingford@maysvilleky.net . A review committee of representatives from the city, Maysville Main Street and MMCIDA will review and award applications with the loans being administered by the Buffalo Trace Area Development District.
Once approved, a check will be mailed to the business within five business days and applicants will be required to submit paid receipts or canceled checks for utilities, rent or mortgages.
Should awardees not comply with the requirements and/or cease to remain in business in Maysville, the loan will not be forgiven and convert to a 4 percent interest rate applied to the date of award with payments due one year from the award date.
“This program has been on our radar for some time. Our Main Street Program strives to support downtown businesses and rarely has there been a greater need than today,” Reece said.
Reece researched other communities and their programs and feels Maysville’s program represents state-wide best practices.
“We’ve poured over programs from places as big as Paducah and as small as Pineville. We’ve taken some of their cues and developed an initiative that best reflects the needs of our own community. Our small businesses need our assistance, and we are hopeful these funds will help them when we’re allowed to reopen. We understand these funds are not a cure-all for businesses affected by Covid, however, we’re hopeful that they provide some relief to those struggling,” she said.
“The MMCIDA applauds the City and their support of small business retention strategies. Seventy five percent of economic growth in communities our size comes from small business. Utilizing these funds to support entities already in operation is much more efficient than those same funds utilized to attract or start new entities.” McNeill said.
Entities such as the Bank of Maysville, US Bank, Security Bank and Trust, Enviroflight, Mitsubishi and others have already pledged monetary support for the program, McNeill said.
McNeill said any individual or business willing to donate to the Maysville Small Business Assistance program can reach out to him, Reece or Wallingford.
Any questions regarding the City of Maysville’s Small Business Assistance Program should be directed to Wallingford at 606-564-2521 or mattwallingford@maysvilleky.net.
