The municipality is hoping to lend the same financial support to rural businesses in Chatham-Kent that urban businesses have received.
A recommendation is coming to council on Monday night that $125,000 be directed from the Ontario Safe ReStart Agreement to expand and fund the Digital Main Street Grant program so that it can help out Chatham-Kent’s rural businesses.
The Ontario government, in partnership with the federal government, is providing all 444 Ontario municipalities with direct emergency funding through the Safe ReStart Agreement. The funding is provided to support the flexibility needed to protect the health and well-being of communities while continuing to support growth and economic recovery.
The Municipality of Chatham-Kent was the recipient of $5.8 million during Phase One of the Safe ReStart Agreement.
The Digital Main Street Grant program, administered by the Ontario Business Improvement Area Association, helps business owners create and enhance their online presence.
According to the staff report, the Digital Main Street program has been highly successful in Chatham-Kent. However, in order to meet the criteria for the grant, a business must be located in a downtown area, which has left hundreds of rural Chatham-Kent businesses ineligible for grant funding to help improve their digital footprint.
"This dilemma was highlighted in the CK COVID-19 Economic Recovery Municipal Response report that Council received on September 28, 2020 with the recommendations that, if COVID-19 funding criteria allows, council encourage allocating up to $250,000 to offer Digital Main Street supports to businesses outside of the 1 kilometre designated radius of the existing grant," read the report. "These additional dollars will allow the businesses to receive support in re-building through an e-commerce model.”
The $125,000 would provide 50 Chatham-Kent businesses outside of the current Business Improvement Area Association districts with the opportunity to apply for a $2,500 grant to further their digital and e-commerce technology.
According to the report, Economic Development Services staff would provide the same training and follow the same criteria as the existing Digital Main Street Grant program to maintain consistency.
"As businesses adjust to the new operating conditions due to COVID-19, the need to transition online is crucial to future financial sustainability," stated the report. "Through feedback and social media, many business owners have indicated that funding is necessary with pivoting their business model."