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Official explains criteria for city grant program

Staff reporter

The City of Marion provides grant funds to selected businesses for improvements and expansion. Here is an explanation of the grant program.

Marion City Council approved $25,000 in public funds be used as grant money to assist local businesses.

According to the qualifications for a grant proposal, the purpose of the grants is to "assist in improving the overall business atmosphere in Marion."

Jami Williams, Marion Economic Development Director, explained the program.

"The committee looks for two primary things — financial need or budget justification and economic impact such as filling an empty storefront with a retail business, selling a legal product, generating sales tax dollars, and employing people not otherwise employed in town," Williams said.

The funds must be used for businesses within the city limits, and can be used for start-up costs of a new business, improve buildings, business expansion, or additional machinery or equipment.

For grants of $600 to $3,000, business owners must provide a 25 percent matching portion. For grants of $3,001 to $10,000, a 50 percent matching fund from business owners are required.

Local contractors must be used whenever possible with appropriate documentation of bids, quotes, and detailed expense proposals.

A business plan is required for new businesses or business expansion.

A grant committee, comprised of members of Marion Economic Development Advisory Board, reviews the applications to determine which applicants may proceed for final approval by the city council.

The simple, one-page application asks general information, including a brief overview of the business, detailed project costs, amount of request, and source of funds that the applicant has or has tried to obtain.

Information also includes projected start and completion dates, additional revenue from the proposed project, and reasons why the project qualifies as economic development.

"The time frame varies," Williams said. "A new construction, for example, would take longer than the purchasing of inventory or a new piece of equipment."

The applicant states the approximate time frame needed to complete the project and when a contract is drawn, that time frame is taken into consideration.

No grant funds are dispersed until the business can provide the matching portion of the grant with appropriate documentation.

Williams said there have been seven applicants with two being approved for grants.

The first grant applicant to be approved by the grant committee and city council was Leith Inc. Grant funds were made available to assist the owner with a privacy fence at his South Thorp automobile repair shop.

The second grant was awarded to Up in Smoke for tobacco inventory.

Williams said she did not want to divulge the names of the volunteer grant committee members, of which she is not a voting member, because applicants might "try to influence" committee members or contact committee members if denied a grant. Denial letters are sent by David Mayfield, city administrator.

Prior to this program, the only incentives the city could give to businesses were for those constructing new buildings in the business or industrial parks.

"This program was started in an effort to benefit new and existing, small businesses that are in the heart and soul of Marion's business district," Williams said. "It also shows the city council's desire to see Marion grow and succeed."

For more information or to apply, contact Williams at the city office.

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