Checks up to $25,000 could start flowing next month

LEXINGTON, Ky. (WTVQ) – Lexington businesses could be in line for city grants of as much as $25,000 by the end of July.

But the Urban Council staff and city administrators must answer a list of questions raised Tuesday by the Council’s Budget Committee before the grant program can proceed.

The questions came during a four-hour discussion of the ground rules for the city’s new $2.5 million business support effort and other business development issues included in the $379 million budget that takes effect July 1.

The program is meant to help businesses come back from the coronavirus shutdown. At least half the money will go to minority- and woman-owned businesses, which members of the Budget, Finance and Economic Development Committee heard a presentation on before taking up the business grant program.

Some Council members want more details on the review process, who will make the final decisions, and how decisions can be made by the end of July to get the money into the economy.

Based on the presentation concerning minority and woman-owned businesses, Council member Angela Evans asked whether part of the money could be put aside specifically at address the disparity that exists with minority-owned businesses.

Evans also said she is concerned about “unilateral decision-making.”

“We need to be involved in some way…it needs to come through our eyes,” she said questioning the application and award process.

“I appreciate the expediency,” she said, referring to efforts to take applications by the middle of next month and award grants by the end of the month.

“But we need to make sure we have review so we don’t have the same problems the fed had,” she continued, using problems that plagued the federal government’s Paycheck Protection Program as an example of what the city needed to avoid.

“This can and should be tweaked a little.”

Likewise, Council member Susan Lamb raised questions “about manaing this…if we have at least 100 applications, I’m very concerned with the amount of time to put forward to manage that a maintain transparency.

“If we don’t set up some criteria, we are going to set ourselves up for problems.”

“I appreciate everyone’s willingness to move forward, but I don’t want to end up in a situation where we find out we should have spent a little more time on the front end,” she said, addressing Council staff research assistant Hilary Angelucci.

“This is a great program, but we need to think about the small things…this is a grant, not a loan, so there will be a lot of applications,” echoed Council member Jennifer Mossotti.

“This is going to be overwhelming,” Council member Richard Maloney warned.

But Council member Preston Worley, who came up with the idea and has been involved with shaping it during the planning stages, said outside experts from the banking community, Commerce Lexington and other groups will be involved in reviewing applications and “depoliticize” the process

“The Council still is going to have an opportunity to review,” he said, describing a quarterly reporting process in an effort to soothe some of the concerns.

The committee ultimately voted 5-3 to have the Council staff answer questions raised during the meeting and get the results to the committee. The full Lexington-Fayette Urban Council will consider the plan at a July 7 meeting.

If approved, applications could be opened soon thereafter.

Council member Bill Farmer said that schedule still would allow the full board time to put off a decision and have a special meeting if necessary.