More help is likely on the way for the local business community and the Redding Chamber of Commerce continues to advocate on your behalf.
According to the U.S. Department of the Treasury, the American Rescue Plan Act (ARPA) will “deliver $350 billion for eligible state, local, territorial, and Tribal governments to respond to the COVID-19 emergency and bring back jobs”.
In May of this year, the County of Shasta and City of Redding received half of the $54 million appropriated by the federal government’s American Rescue Plan. By May of 2022, rounding up, roughly $35 million will go to the County, $19 million to the City. Anderson, City of Shasta Lake, and the Redding Rancheria have also received funding. The good news for the local business community is that one of the allowable categories of investment of these funds is to alleviate economic impacts to individuals and businesses.
The reason that the funds have not been spent to this point is that our local governments are awaiting final guidance from the feds. In the meantime, the time has provided an opportunity to consider potential use of these funds.
I was invited to a recent informational and brainstorming meeting at Redding City Hall led by City Manager, Barry Tippin. He shared the parameters for funding eligibility with the group as follows:
1) Public health response
2) Economic impacts to individuals and businesses
3) Premium paid for essential workers
4) Provision of government services due to revenue loss
5) Investment in water, sewer, broadband infrastructure
It is important to note that these funds can’t be used for pensions or debt services. Additionally, funds must be obligated by the end of 2024 and spent by the end of 2026. If you care to read through the Treasury Department’s Interim Final Rule, you can do so by clicking HERE.
We at the Redding Chamber have surveyed our members and beyond to assess and estimate the current immediate financial needs that exist. It is clear that we should seek funding for an additional round of business grants. That said, considering the current moment and into the future, perhaps into more of a long term mindset, what do you think would be the best use of these funds as it relates to supporting businesses in Shasta County? Programs or infrastructure?
This might be a once-in-a-lifetime opportunity. How do you measure return on investment?
President & CEO