Luzerne County Council is set to vote Tuesday on a $20 million grant program for small businesses funded by a portion of the county’s American Rescue Plan allocation.
Council members offered mixed reactions on the proposal during a work session discussion earlier this month.
To date, council has earmarked nearly $5 million of its $113 million in federal American Rescue funding — $924,000 to cover its public transportation matches and $4 million for county prison repairs and information technology needs. The county does not have to commit to an American Rescue allocation plan until the end of 2024 and has until the end of 2026 to spend the money.
The county’s administration pitched the $20 million allocation to help businesses with up to 19 employees weather staffing challenges, inflation and continuing effects of the COVID-19 pandemic.
It is modeled after the county’s previous small business assistance program offered last year through a different federal recovery funding source — the Coronavirus Aid, Relief and Economic Security (CARES) Act. Approximately 680 county small businesses received grants in that program.
Regional economic development organization Penn’s Northeast helped to administer the small business program for the county, with assistance from the Community First Fund. An online portal was set up to accept applications.
County Acting Manager Romilda Crocamo told council Feb. 8 the administration concluded $20 million would be necessary for a new round of assistance because businesses are still suffering, largely due to additional “upheaval” caused by the coronavirus omicron variant.
County Community Development Director Andrew Reilly said assistance for small business is “absolutely necessary” based on a survey conducted by Penn’s Northeast and feedback from other county economic development partners, including chambers of commerce.
“Basically what we hear is that they continue to struggle with the staffing crisis, supply chain issues and the rising cost of supplies,” Reilly said.
He said the grants would not be a “hand out” but would be a “hand up” to help make them more “resilient for the future.”
The county has nearly 6,000 businesses with 19 or fewer employees, Penn’s Northeast President/CEO John Augustine told council.
“That is clearly the backbone of our economic structure,” Augustine said.
Augustine said he believes the federal government placed language in the American Rescue program specifically authorizing small business assistance due to the continued need.
Following procedures used in last year’s small business grants, the allocations would be made in a “fair and equitable” way with efforts to ensure eligible businesses are aware of the opportunity, Augustine told council.
The $20 million allocation would “absolutely make a difference in every corner of Luzerne County,” Augustine said.
Council response
Councilman Chris Perry said he was impressed with the extensive application and review process that would be used for the grant determination. He also spoke with a Hazleton chamber representative to verify the need for additional small business assistance.
Council Vice Chairman John Lombardo concurred, saying he was “very impressed” with the application process. He thanked the administration, particularly Crocamo, for working with council members who had expressed concerns when the proposal was tabled last month.
Lombardo said many businesses are struggling with inflation.
“That’s not lost on any of us, how expensive things have gotten,” Lombardo said, expressing support for the grant program.
But Councilman Kevin Lescavage suggested delaying a decision until the county knows what funding the state is providing to small businesses so there is no duplication.
While stressing he’s not opposed to supporting small businesses, Lescavage said difficulty finding workers is the biggest complaint he is hearing from the many small businesses he interacts with at work.
“It’s not a loss of business but instead a loss of employees,” Lescavage said. “I have one gentleman who could do another half a million dollars in business, and he can’t get employees to do that.”
Lescavage also noted his recent Saturday morning breakfast out for four cost $54. He predicted many families will be eating out less and questioned if investing more funding in grants will “change the dynamics of what’s happening in this country right now.”
“Inflation is through the roof. Everybody knows it on every single item that they buy. So people are just going to cut back,” he said.
Councilman Stephen J. Urban agreed, saying many places “could do a lot more business” if they could find workers. He also questioned the administrative costs to carry out the program.
Councilman Brian Thornton said a “disturbing trend emerged after the pandemic” in which more companies locally and across the country have permanently switched to remote working, impacting eateries.
“The big crowds they used to have at lunchtime in the cities, like downtown Wilkes-Barre and Hazleton, they’re probably never going to return,” Thornton said. “I don’t really know what the solution will be to that.”
Urban said more restaurants will have to embrace online food delivery apps to survive.
Council’s voting meeting starts at 6 p.m. Tuesday at the county courthouse on River Street in Wilkes-Barre, with instructions for remote attendance posted under council’s online meetings link at luzernecounty.org.
Other requests
Council also is slated to vote Tuesday on American Rescue funding requests from the county Flood Protection Authority and the North East Pennsylvania Land Bank Authority.
The flood protection authority, which oversees the Wyoming Valley Levee along the Susquehanna River, is seeking $8 million for a range of projects.
Based on feedback from council and the administration, the authority agreed to pass on the benefits of receiving the county funds to levee fee payers through a fee reduction.
The land bank authority, a regional entity focused on blight reduction, is seeking $500,000. It covers Pittston, Jenkins Township and the boroughs of West Pittston, Duryea and Avoca.