The City of Kenosha Common Council has approved an agreement that would have the Kenosha Area Business Alliance (KABA) administer the City’s and Snap-on, Inc’s emergency grant program to assist small businesses adversely impacted by the state’s Safer-At-Home order, aimed at limiting the spread of the COVID-19 virus.
KABA is currently working on formalizing the grant application process. The anticipated start date of the program is June 1st. In the meantime, general eligibility for the program are businesses that have 20 or less full-time equivalent employees (FTE) and are:
- Closed and will re-open and create at least 1 FTE, which may include the business owner
- Partially open and will expand services and create at least 1 FTE
Grant funds can be used for working capital such as paying rent, purchasing inventory and paying salaries. Grant funds cannot be used for expenses that were previously paid for by another emergency assistance program.
As previously announced, the maximum amount of the grant is $15,000 and is available to businesses in the City of Kenosha. Some funding is earmarked only for businesses within Tax Incremental Financing District 4, which includes downtown. Businesses receiving the grants must use the funds to create or retain a minimum of one job. Funds do not have to be repaid as long as the business remains open and retains the job created for at least one year. Non-compliance will result in the grant being converted to a loan.
In addition, if some businesses need more than $15,000, they may apply for an interest-free loan of up to $15,000. Loans must be repaid over 48 months, with payments beginning one year after the loan originates. Snap On, Inc has provided the first $100,000 for this loan fund and hopes that additional contributions up to $500,000 will come from other Kenosha businesses or individuals.
A public announcement will be made on when and how to apply after the grant application process has been formalized.