The town of Mancos is directing federal coronavirus relief money to businesses and nonprofits in Mancos that have been economically impacted by the COVID-19 pandemic.
The Mancos local government is set to receive over $119,000 in CARES Act funding, $90,000 of which would help support local businesses and nonprofits within town limits. CARES Act money for Montezuma County, $2.2 million in total, is distributed by the Colorado Department of Local Affairs. The county distributes funding to local governments based on population size.
Mancos businesses and nonprofits can apply for a grant of up to $5,000 through the new program.
“We want to help the businesses in any way we can,” said Rachael Marchbanks, economic development coordinator for Mancos.
To apply, businesses and nonprofits need to provide receipts and financial documents to show the economic strain of the pandemic on their business operations, as well as proof of a Mancos business license.
Businesses that do not have a license can apply for one online and receive the first year of accreditation for free.
“It’s not fair to grant loans to businesses not following the law,” Heather Alvarez, town administrator, said during a town board meeting Wednesday evening.
Marijuana businesses are not eligible for the federal loan because marijuana is not legal at the federal level.
Small businesses with “one owner doing it all” get overwhelmed by applications, so the town is trying to keep the process as simple and as similar to existing applications as possible, Alvarez said.
A grant from the town will also come with a free year’s membership with the Mancos Valley Chamber of Commerce, which provides advertising for local businesses.
Money from the grant can be used for reimbursement of expenses related to COVID-19 as long as receipts are available, such as the purchase of masks and sanitizer for customers, plexiglass for protection of employees from respiratory droplets, signs indicating appropriate distancing, and other costs associated with meeting public health requirements to slow the spread of the virus.
The grant can also be used for future expenses related to COVID-19, including needs that might arise through the end of the year, such as heaters and tents for outdoor seating.
“It’s very important that if we are granting money it is for the appropriate purpose,” Alvarez said, because the federal government can request a return of the funds if they are not used appropriately under guidelines of the Coronavirus Aid, Relief and Economic Security Act.
According to the news release from the town of Mancos, funding can also be used for costs related to closures or expenses for canceled events, unless the business or nonprofit has already received funding to cover these costs.
“They have to show a business loss,” Marchbanks said.
All CARES Act funding must be allocated by the end of the year. The first round of applications is due by Sept. 30, and if funding is available, another round of applications would be due Nov. 30.
After the first round, if there are not many applications, the town will raise the grant award to use the funding up before the end of the year.
The selection committee for grant recipients will include two representatives from the town of Mancos, a representative from the Region 9 Economic Development District of Southwest Colorado and a representative from the Mancos Valley Chamber of Commerce.
CARES Act funding that is not allocated to the grant program will be used for technology updates for Mancos government employees, which will allow them to have remote meetings. It will also be used to reimburse the town for its own COVID-19 expenses, according to the news release.
The CARES Act funds will be reimbursed to the town through DOLA, once the funds are spent, Alvarez said.
ehayes@the-journal.com