VALDOSTA – The city is going to cut checks totaling $2 million to local small businesses.

The funds are part of the Valdosta portion of the American Rescue Plan Act allocation for a Small Business Grant Program as a counterpart to the nonprofit grant program set back in April.

Total allocation is $16,254,682 for Valdosta, with half of the allocation being received in June 2021 and $3.2 million of the funds received going to retainage pay to hourly city employees.

The Small Business Grant Program is designed to provide relief to small businesses impacted by the COVID-19 pandemic and help revitalize the city’s economy. The city had received 234 applications totaling $3.9 million of potentially eligible requests.

Applications were divided based on location in the Qualified Census Tract as defined by ARPA, minority/female/veteran ownership and time of application receipt. Prioritization results in the applications were divided into four categories:

– Minority/women/veteran-owned businesses located in the QCT.

– Non-minority/women/veteran-owned businesses located in the QCT.

– Minority/women/veteran-owned businesses located outside of the QCT.

– Non-minority/women/veteran-owned businesses located outside of the QCT.

As applications are prioritized on a first-come, first-serve basis, the $1 million would only serve the first 54 businesses with maximum rewards ranging from $5,000 to $30,000 depending on the business’ gross receipts but are limited to documented eligible expenses.

In his report to Valdosta City Council, City Manager Mark Barber recommended adding $1,550,000 to the allocation amount to at least meet the requests of the first two QCT categories.

At the City Council meeting, two members of the program committee, Christie Moore of the Valdosta-Lowndes Chamber of Commerce and Dewayne Johnson of Bridge Builder Education Foundation, presented different plans on how to provide some funding to all applying businesses. The plans were:

Option 1: Fully funding all eligible businesses by allocating an additional $3,230,000 for small businesses.

– QCT & minority, women, veterans: $2,065,000.

– QCT & not minority, women, veterans: $605,000.

– Not QCT, MWV: $1,320,000.

– Not QCT or MWV: $240,000.

Option 2: Fully fund the first two categories, then give category three $2,500 each and category four $1,000 each by allocating an additional $1,883,500.

– QCT & minority, women, veterans: $2,065,000.

– QCT & not MWV: $605,000.

– Not QCT, MWV: $192,000.

– Not QCT or MWV: $21,000.

Option 3: Fully fund the QCT and minority, women and veteran applicants, give category two $5,000 each, category three $2,500 each and category four $1,000 each by allocating an additional $1,439,000.

– QCT & minority, women, veterans: $2,065,000.

– QCT & not MWV: $140,000.

– Not QCT, MWV: $192,000

-not QCT or MWV: $21,000.

Council member Tim Carroll made a motion to provide an additional $1 million, with Council member Andy Gibbs voting in favor, and Council members Eric Howard and Sandra Tooley voting to deny. As Mayor Pro Tem Vivian Miller-Cody and Council member Ben Norton were absent from the proceedings, Mayor Scott James Matheson cast the tie-breaking vote to maintain current funding.

During the council member comments portion of the meeting, Tooley expressed disappointment with Carroll, Gibbs and Matheson’s refusal to provide more money to the small businesses and apologized for the outcome, stating that such businesses are “the backbone of Valdosta.”

“They’re so concerned about the other entities. There is other funding as well to help the other entities that they’re talking about as well. Y’all (Moore and Johnson) were trying to get money and get support for the small businesses. That’s what we’re supposed to be trying to talk and help about.

These other entities, when they come up or when something comes up with them, we’ll take care of that situation. and I want you to see, because I think this is a travesty that they are so concerned about ‘others’ rather than our small businesses who are trying to survive, who are trying to stay alive, who are trying to do things,” she said.

Tooley brought up similar concerns at the City Council’s strategic summit in March and again at the initial ARPA proposal meeting in April, when she objected to the Savannah Avenue Train Project specifically, which is allocated for $3.5 million.

Matheson has said the Savannah Train plan would revitalize an abandoned corridor of the titular avenue by adding a dinner train excursion attraction with a multi-purpose walking trail guided by CaterParrott Railnet that could potentially have a $6 million economic impact for Valdosta.

While not having an issue with the project, Tooley said in past interviews that the amount allocated was “exorbitant” and another million could easily go to small business and rehabilitation projects, which only got $1.3 million in total funding, a little more than a third of funding for the Savannah project.

Gibbs responded to her comments that he wasn’t going to be “put on a pedestal” as if he doesn’t support small businesses.

He said as a someone who helps run a nonprofit himself, he encouraged his board to decline putting in an application so other businesses could have their own funds.

“It’s not the fact I’m not for small businesses, and for you to say, to act like us council members have no concern for small business is really, to me, concerning. Especially when the fact of what we’re doing, making sure we don’t over-allocate our money so we can help out Second Harvest. So what you’re saying is Second Harvest is not important. You know, what you’re saying is helping out these other homes and houses are not important.

So I’m not going to get into a discussion but I’m not going to sit here quietly while you play as if I’m completely against small business and that’s not the case at all,” he said.

Tooley said she never said he wasn’t concerned with small businesses but council should have had the small business community as its top concern at the meeting, and not other entities.

She added she supports Second Harvest and assists it in getting grant funding.