PROVIDENCE – The Providence City Council is poised to give final approval Thursday night to a $7 million small-business relief program that still lacks critical details.
The money for small businesses was tucked into an ordinance outlining plans to spend $42 million of federal stimulus funds under the American Rescue Plan Act. Though the city expects to receive $160 million in total, the council has already given initial approval to a first tranche of funding that includes money to balance the fiscal 2022 budget and spending on community programs, infrastructure and small businesses.
When the plan was first approved by the city Finance Committee, there were no details publicly about how the $7 million for small businesses would be spent. Details unveiled during a full city council meeting Tuesday offer some clarity; the program would give $2,500 checks to eligible small businesses with $5,000 to $1 million in tangible assets. Businesses must have been registered with the city by Dec. 31, 2019, and must intend to stay open for at least 12 months, according to city documents.
The single paragraph explanation references an application but does not say what information will be needed beyond an affidavit confirming compliance with its guidelines. It also does not specify when the program will open, or how applicants will be prioritized (on a first-come, first-serve basis, or something else).
Asked these questions, First Deputy City Clerk Tina L. Mastroianni wrote in an email to PBN on Thursday that she was unsure of the rollout plan.
Some council members also pointed to lack of clarity around these funds, as well as absence of public input on the overall spending plan, as reasons for their opposition. The ordinance passed by an 8-6 vote on Tuesday. The requisite second vote is slated for the council’s Thursday night meeting.
Nancy Lavin is a PBN staff writer. You may reach her at Lavin@PBN.com
Kudos to the Council members who voted against this pending fiasco.