Proposal would eliminate nonprofits from eligibility
By Jason Arndt
Editor
Proposed changes to the City of Burlington’s Revolving Loan Fund could make non-profit organizations ineligible to receive assistance from the program adopted by the Common Council a year ago.
The Racine County Economic Development Corporation, which administers and assists the city with the fund, recommended the adjustment in parameters following its January Board of Directors meeting and discussions with city staff.
Carolyn Engel, Business Finance Manager with RCEDC, told City Council members at a Feb. 4 Committee of the Whole meeting there was a need for changes because grant funds have been high in demand.
In 2019, when the city first created the grant fund, the Common Council allocated $98,000 specifically for grants.
However, since the Common Council awarded $54,680 in grants, there is only $43,319 remaining with more 2019 applications still under review by RCEDC.
Leftover funds, if any, would be added to the proposed $50,000 set aside for 2020 grant applications.
Engel indicates RCEDC decided in January to place a renewed emphasis on economic development, notably jobs, and small businesses looking to move into the City of Burlington.
“The purpose of these loans would be to jumpstart businesses, get them to next level to the point where they might be ready to seek additional capital that could be met by (other) financial institutions,” she noted.
Eligible businesses, she said, would be establishments looking to create more than one job, which fits into the city’s strategic plan.
With limited funds available, RCEDC has proposed reducing the maximum grant amount from $15,000 to $10,000, which could help more businesses in 2020.
“We have a waiting list of applicants for 2020 dollars,” she said, noting $10,000 grants could assist at least five businesses.
The proposed changes, however, drew some questions from the Common Council as well as a local nonprofit group at a Feb. 4 Committee of the Whole meeting.
Nonprofit concerns
Beverly Gill, President of the Burlington Cemetery Association, expressed uneasiness about the proposed change as it relates to making non-profit groups ineligible for grants.
The Cemetery Association, which suffered a substantial financial loss due to embezzlement decades earlier, continues to struggle with how to pay for a restoration project on a historic chapel constructed nearly a century ago.
Gill had planned to apply for a grant to help offset some of the expenses.
“It is crumbling. It is in bad shape,” she said, adding a local contractor assessed the historic structure and estimated the total cost of repair would come around $83,000.
Gill, who was unable to apply for a 2019 grant, acknowledged the proposed loan fund change would adversely affect the Burlington Cemetery Association’s planning.
She also added the project could create jobs, mainly in construction, while protecting local history.
“We are caught in the middle here. We create jobs,” she said. “That is where we are. We are struggling.”
To read the entire story see the Feb. 13 edition of the Burlington Standard Press.
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