A new $800,000 grant program for small Barrie businesses affected by COVID-related restrictions was given initial approval from city councillors late Monday night.
“We’re in a position to give back and I think we should,” said Mayor Jeff Lehman, who estimated the funding could help 200 to 300 businesses. “I want to get this rolling. Our businesses need the help now.”
The grants would be equivalent to 25 per cent of property taxes paid to the city in 2020, to as much as $5,000 per commercial or industrial business.
Final approval of the Barrie small business tax relief grant program will be considered by city council at its April 12 meeting.
The majority of councillors support the program as it now stands.
“These businesses need our help right now,” said Coun. Natalie Harris. “You have to start somewhere and time is of the essence.”
“Our businesses are really hurting,” said Coun. Clare Riepma. “We need to support our businesses right now and not wait.”
But Coun. Mike McCann spoke against the program, saying it was not enough money to help businesses that have been locked down and lost businesses during the pandemic.
“If we are going to do this, we need a much bigger number,” he said. “This just isn’t good enough.”
McCann tried to defer the matter to a future meeting, but could not find the support.
He asked aloud how councillors could commit $3 million to a proposed supportive, modular housing project on Vespra Street to help solve Barrie’s homeless problem, but only $800,000 for the small business community.
“I will be asking for $3 million next time we meet,” McCann said of the small business grant program.
Deputy Mayor Barry Ward said the grants should go to bricks-and-mortar businesses, not home-based ones.
“It should go to those who are paying commercial taxes,” he said.
Councillors spent almost two hours of Monday’s five-hour general committee meeting hammering out details of the grant program.
Eligibility criteria include that the business be personal service, a fitness or recreational establishment, restaurant/food service, retail store, arts/culture/recreational organization and have 20 employees or less, except in the case of restaurants/food service establishments. It must provide proof of payment of property tax to the City of Barrie in 2020 and must attest to a loss of revenue as a consequence of COVID-19 and/or public health restrictions.
City staff would also investigate potential programs to support home-based businesses and report back on April 19.
The $800,000 would be funded from two sources — $600,000 from the tax-rate stabilization reserve and $200,000 from the city’s reinvestment reserve.
