Ogden creates $758K fund to aid businesses still reeling from pandemic
Standard-Examiner file photo
The Ogden City Municipal building is pictured in this undated photo.OGDEN — Businesses hit by the lingering effects of the COVID-19 pandemic have a new source of funding to tap for help.
Sara Stoffers of the Ogden Business Information Center says possible uses may be boosting workers’ wages and helping eligible businesses deal with rising costs of inputs brought on by inflation.
The Ogden City Council on Tuesday approved formation of the Business Recovery Fund, creating a pool of money — $757,683 — that certain businesses will be able to tap for help in the form of loans, possibly forgivable loans in some circumstances.
“This is another tranche of money and it’s a brand new program,” said Stoffers, who manages the Ogden Business Information Center, the city entity that operates a number of loan programs geared to local businesses.
Ogden, Weber County and the other cities in the county have already received earmarks for another $140 million or so in American Rescue Plan Act and CARES Act funding from the federal government, also meant to help bounce back from the COVID-19 pandemic and its ripple effects. Now comes the Business Recovery Fund money, funneled from the U.S. Department of Housing and Urban Development via the CARES Act.
The Business Recovery Fund money is geared toward small businesses, those with five or fewer employees, that are operated by low-income owners. But other businesses looking to create or retain jobs can also tap into it. The common thread is that the funding has to be used to deal with the fallout of the COVID-19 pandemic.
“As long as I can tie back to COVID, that’s all that matters,” Stoffers said.
She said funding could potentially be used to boost workers’ wages to aid businesses needing employees. Many workers have left the job market due to the pandemic, making it tough for some employers to find employees. Funds could also be used to help businesses offset rising costs of goods brought on by rising inflation, also linked to the pandemic.
Program participants may get loans of $5,000 to $90,000, and if recipients seek the higher end of what’s allowable, 10 to 15 businesses could get help. Participation terms are flexible and some loans, depending on a business’ circumstances, could be forgivable, according to Stoffers.
She expects the funding to be exhausted by early 2023, though the city will have until April 24, 2027, to earmark the money.
