The Culver Town Council members got an update Tuesday night on taking out a bond to further assist local businesses with COVID-19 response.
Town Manager Jonathan Leist said this possibility was researched prior to the initiation of the town’s Small Business Program where nearly $140,000 in funds were paid out to 21 small businesses in Culver to help with rent, mortgage, utilities and payroll in response to the health pandemic.
Leist said the council previously thought about a bond program to assist small businesses, but in further research of the program, the administrative costs of the bond would be about $50,000 to $80,000 regardless of the amount of the bond. Beyond that, the funds wouldn’t be available for three to six months and the council wanted something more immediate.
On the town’s Small Business Grant application, there was a question if businesses would support a forgivable loan program through the acquisition of a bond. Leist said most of the owners supported that decision.
The initial administrative cost to pursue the bond concerned council members, plus they did not offer support to forgivable loans. The council members are also happy with how the town’s grant program was handled. There may be an opportunity down the road to offer another round of grants through another option. In the end, the town council agreed to not pursue the bond process.
Currently, the town is accepting applications for utility bill forgiveness. The program allows for forgiveness of the total water and sewer utility charges for small businesses within the corporate limits of Culver for invoice due dates of March 15, April 15, and May 15, 2020, up to a total of $1,500. The application is online at www.townofculver.org.
