Thirty-nine Detroit Lakes businesses were recommended for CARES Act relief grants totaling $205,094 by the city's Development Authority.
The city council will take up the matter on Tuesday, Nov. 10 during its next meeting. Currently, the city has nearly $250,000 in unallocated CARES Act funding that it must spend before a Nov. 15 deadline, otherwise the funding will be sent back to Becker County.
If the city council approves the grants, Larry Remmen, community development director for Detroit Lakes, said the checks would go out "right after the council meeting, so Nov. 12th, since the 11th is a holiday."
One of the conditions for Detroit Lakes receiving CARES Act funding from the state was that 10% be used as "economic incentives." If the council approves the funds, Detroit Lakes will use 29% of its CARES Act funding in the business relief program.
Initially, 63 businesses applied for the grant program before the October application deadline. Then, the city's loan committee, using a series of guidelines, threw out 24 applications that didn't meet the requirements.
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Some of the guidelines included:
- Does the small business employ 25, or fewer, full-time employees?
- Did the business close after Gov. Tim Walz issued executive orders in March, closing bars, restaurants, and other places of public accommodation, including hair salons and barbershops?
- Did the business receive a relief grant from the Minnesota Department of Employment and Economic Development (DEED)?
- Should the business's eligibility be reduced due to receiving funds from the Becker County's grant program?
Of the 24 businesses not recommended to receive grants, a majority, Remmen said, were because the business already received a $10,000 DEED grant. Also, seven businesses were not recommended because they had already received "significant" CARES Act funding from Becker County.
Many of the businesses recommended to receive relief grants were restaurants and hotels, but some retail and service-based businesses were also endorsed for funds.
Businesses could apply for up to $10,000 in relief, however, due to the number of businesses that applied, no business will receive more than $9,000.
During the meeting, Remmen said, "The $3,000 awards were businesses that were sole proprietor businesses, so they were very small, and then the larger businesses were given the $9,000 grant award for a total of $205,094."
Businesses receiving the maximum $9,000 grant allotment:
- America's Best Value Inn
- Country Inn & Suites
- Quality Inn
- Don Pablos Mexican Restaurant
- Spitfire
- Voyager Lanes
- Sapphire
- Long Bridge
- Fireside
- China Buffet
- La Barista
- Hub 41
- Northside Bar
Businesses receiving between $3,000 to $5,000:
- Great North Pizza
- JB Custom Apparel
- Precision Printing of Minnesota
- Hair & Company
- Subway (Washington Avenue)
- Subway (Highway 10)
- Miguel's
- BJZ Mainstream Boutique
Businesses receiving less than $3,000:
- Repurposed Pennies
- Lakes Shoe Repair
- Best Pet
- Ultima Gaming
- Beautiful Junque
- Toyfinders on Holmes
- Wagoner Portrait Studio
- Cyberdogz
- Charlene's Nail
- Reflexology by Wendi
- Serenity Salon
- Artistry Hair Studio
- Marvelous Nails
- Clean Car Auto Services
- Snap Fitness
- Margaret Lotvola - independent hair stylist
- Janalee Wyckoff - independent hair stylist
- The Ice Cream Truck
