By SHANNON HAUGLAND
Sentinel Staff Writer
The city is starting to receive applications for CARES Act funds from nonprofit and for-profit businesses, but not as many as it’s prepared to handle, officials said today.
“We’re trying to get the word out to get people to apply,” said Rob Allen, who has been hired by the city as CARES Act grant technician. “We’re trying to get as many fishermen as we can to apply.”
The application period opened on August 1 and will close 5 p.m. August 31.
Allen said that as of this morning he’s received 240 applications, and processed 120, totaling $630,000 in requests so far. The city must have the funds distributed by Dec. 31, but Allen is hoping to get the checks out long before then.
The city has received $14 million in federal CARES Act funds for individuals, businesses and social services to offset the financial impacts of COVID-19.
Based on the recommendations of the CARES Act Working Group, the Assembly approved $5 million for nonprofits and businesses in grants ranging from $2,500 to $10,000 per nonprofit or for-profit business. The grants are based on the revenues of the particular business in recent years.
The three-page application asks for basic information, plus gross revenues for either 2018 or 2019 in a section that both nonprofit and for-profits fill out. The forms can be filled out or downloaded at the city website, cityofsitka.org.
Enterprises that in a normal year would have gross revenues of under $100,000 are eligible for a grant of $2,500; between $100,000 and $250,000 it’s $5,000; over $250,000 but less than $500,000, it’s $7,500; and over $500,000 it’s $10,000.
There is an additional box applicants can check: “The gross revenue for my organization does not appropriately capture the scope of the services my business or nonprofit provides to the community and I would like the Assembly to consider, in public session, awarding at one of the levels reserved for organizations with higher revenue.”
There are questions in the for-profit business section where any “yes” answer would make the business ineligible, including being in bankruptcy proceedings or having no permanent physical presence or employees in Sitka.
All nonprofits and businesses must check a box to say they have experienced financial hardship due to COVID.
When the $5 million was designated for businesses and nonprofits, some Assembly members said they thought the grant amounts would not make a significant difference to the recipients, but they still wanted everyone to get at least some help.
“It’s a difficult balancing act,” said Kevin Knox, one of the Assembly representatives on the working group.
If there is money left over, the Assembly will have the opportunity to take a new tack on getting it out into the community, Knox said.
Allen said he gets about five questions a day by phone or email. A FAQ sheet is available on the city website. Both the application and FAQ are in the COVID-19 Information Center link, on the right side of the main city page at cityofsitka.com.
Allen said he’s hoping for more applications from fishermen who run their own businesses, and self-employed deckhands. He said of the 120 he has processed, only 28 fishermen operating as a businesses and five deckhands have applied.
“There are so many in town and we know the markets have been affected,” Allen said. “We’re trying to help as many businesses, nonprofits and self-employed people as we can.”
An experienced businessman and administrator, Allen was CEO of Sitka Community Hospital before the merger with SEARHC. In his role overseeing city CARES Act grants, he said that if he sees a mistake in an application, or that has been filled out in a way that makes the applicant ineligible, he will call or email to offer help or explain why. He can be reached at 747-1824 between 8 a.m. and 2 p.m. weekdays.
A common problem is with applicants filing more than once when they have businesses that aren’t separate, he said. There are no restrictions on how the grant money can be spent, and no reporting requirements.
In general, Allen said, most for-profits are applying on paper, and most nonprofits are applying online, but there is crossover. Another trend is that the largest applicant pool is in the lowest category for funds.
Of the 120 applications processed as of today, 14 are from nonprofits, Allen said.
The Sitka Fine Arts Camp, one of the largest nonprofits in town, was the first to apply for the help.
Camp director Roger Schmidt said that with the cancellation of this year’s camp, the organization returned more than $700,000 in tuition and many expenses were already incurred. Even with cutbacks, the camp will finish the fiscal year with $500,000 in losses and will be looking at holding next year’s camp with higher costs due to COVID.
Still, he said, the $10,000 he is seeking will cover the cost of dozens of scholarships for Elementary Camp or 10 for high school or middle school camp.
“There isn’t any reality we live in where there’s such a thing as too small of a donation,” he said.
The city has committed other CARES Act funds to utility and moorage subsidies ($4.5 million); city mitigation ($1 million); new programs ($750,000); Sitka School District ($430,000); and contingency ($627,653).
