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Thursday, July 02, 2020

NorCo: What About Those Small Business Grants?

When Northampton County Council last met on June 18, it voted that Council, and not the Greater LV Chamber of Commerce or even Executive Lamont McClure, will have the final say in the award of $4 million in small business grants (less than 100 employees) to businesses negatively impacted by the Covid-19 pandemic. Council member Kevin Lott aptly summed up the sentiments of eight of nine Council members when he remarked, "I will not vote for a resolution that just hands money to the Chamber and says, 'Have a good time!'" Though Council flexed its muscle and reminded everyone that it is the governing body and is vested with the "residual powers," it has yet to approve a process under which these $15,000 grants will be doled out. That should happen tonight.

Executive McClure has proposed what essentially amounts to an administrative committee to review grant applications, consisting of the Greater LV Chamber of Commerce, a representative from the Department of Community and Economic Development (DCED), Fiscal Affairs Director Steve Barron, and two members of Council. They would make recommendations to McClure, but Council would still review each application, including those that are turned down. The Chamber, which would be responsible for marketing these grants to members and nonmembers alike, would get a $175,000 cut, which is $25,000 less than what was originally proposed.

The McClure option (you can read it below) has several advantages. First, it allows the Chamber, which is the focal point of the local business community, to market the grants better than the county. Second, DCED and Fiscal Affairs Director Steve Barron can ensure that applicants are actually qualified and legitimate businesses. Under County ordinances, no business that owes money to the county should receive a grant. Third, the involvement of Council provides both an insight and oversight into the process. Council and administrators can keep a wary eye on each other. And both Council and administrators can ensure the Chamber is unable to funnel grants to its favorites.

There are two other options.

The McClure Option Plus is one in which this administrative committee is stacked with more Council members. If this happened, it would no longer be a purely administrative committee. It would in effect become a Council committee and would be subject to the Sunshine Act. In public, it would be reviewing the tax returns and sensitive information of private businesses.

The Council Committee option is one in which a Council committee would solicit and review the grant applications itself. It would save the money being paid to the Chamber for marketing, but Council really lacks the capacity to market these grants itself. Moreover, it is unable to vet the applications or determine whether a business really is legitimate or qualified. It is unable to check whether a business is up to date on taxes. It would also be meeting in public.

The appropriate option is the McClure option. Too many tasks associated with the applications are purely administrative. Moreover, it would be improper to review sensitive information in public. It is best to have an administrative committee review the applications, and then let the full Council have the final say. This is similar to the method used to review gaming grants and has worked well in the past. For example, Council in 2018 put the brakes on grant money that was going to be used for church repairs in violation of the Establishment Clause. This method will also be more effective in getting money out the door to businesses in need.


Small Business Grant Resolu... by BernieOHare on Scribd

23 comments:

Anonymous said...

Of course, they should, of course they should. Good thing you are just a publicist.

Anonymous said...

So McClure will give them out to his buddies the people that gave him election money just like he did jobs! One term and out!

Bernie O'Hare said...

McClure can try to give grants to his buddies but Council will be there to raise objections. Council members can do this as well, and the Exec can raise objections. One member of Council is currently running for state rep, and may want to use this grant program to curry favors with potential voters. I'm not saying this is happening, but she was the sole Council member opposed to oversight. I think they should all be keeping an eye on each other, and the best way to accomplish that is via the McClure option. It is the best of both worlds. It enables the Chamber to market, which it can do better than the county. It enables county administrators to vet the applications for eligibility. It gives Council oversight over $4 million, which it rightly should exercise.

Anonymous said...

The Chamber being paid $175,000 for their involvement is OBSCENE!

First, the grants themselves are maxed out at $15,000 for struggling businesses. If the Chamber wants to apply, they should. If they still want to help out as part of their (already) TAX-EXEMPT mission, they shouldn't be compensated for it. They're already supposed to be serving a charitable purpose.

Second, their involvement is in no way worth $175,000. It's not a $175,000 job. If Council is reviewing the applications, Barron is reviewing eligibility, and the county's DCED - which taxpayers are already paying for - is doing SOMETHING (ANYTHING), the Chamber isn't really needed at all.

If you're telling me we need to pay the Chamber $175,000 to market a program that doles out free money to struggling businesses, I have a bridge to sell you. Businesses are already aware that the county has money to give out because other counties have already disbursed their funds without paying cronies to be a middleman. So you're already going to have more applications than you have money for.

In no rational world should eligible businesses have their grant money STOLEN from them by the Chamber of Commerce and politicians looking to buy that organization's votes. This is once again a government payout to cronies that screws the little guy.

Finally, in no way is the Chamber "the focal point of the local business community". In fact, most businesses don't belong to the Chamber, or even care about what they do. I can only hope that this latest attempted cash grab from struggling businesses - the very people the Chamber claims to serve - wakes people up to see the parasite that the Chamber actually is.

I'm sure as they discuss this, Council will talk about how it's necessary to help small businesses that are struggling and how there's not enough money available for the need. But any politician that votes for this scheme should realize that they're part of the problem and should be removed from office.

Bernie O'Hare said...

The Chamber is the only organization in the LV serving as the focal point of the business community. You may not like it, but that is the reality. It is in a better position to market these grants than the county dced. The fee is $25k less than it was two weeks ago. And there will be oversight. You could cut the Chamber out and order DCED to market. That's the best way to ensure the grants go to those who know someone. I am more interested in seeing that grants go to those in need, regardless who they know.

Anonymous said...

8:12 Agree, advertising that this money is available and listing online address and phone number for how/where to apply doesn't need the Chamber. Keep as much of this money for the businesses it is meant to help as possible.

Anonymous said...

DCED should create an adhoc committee with representation from sectors of small businesses, actual business owners who know what and where the real needs are. Keep Chamber out of it.

Bernie O'Hare said...

I'd bring DCED in first and ask them before giving them yet another task. Perhaps they can do it. Perhaps not. I do not like an ad hoc committee made up of the businesses who will themselves be benefiting.

Anonymous said...

Bernie O'Hare 8:20 said:

"...You could cut the Chamber out and order DCED to market. That's the best way to ensure the grants go to those who know someone. I am more interested in seeing that grants go to those in need, regardless who they know."


This is the most stunning statement you've made in a while, and I'd like you to take a moment to actually think about what you just wrote.

So the DCED, which is already in charge of doling out far more monies that the measly $4 million we're talking about here, is unable to impartially advertise the availability of federal grant funds? For a program where EVERY application is going to be reviewed by Council?

If that's the case, the DCED director and the county executive should resign immediately for tolerating such practices. Or at least disband (defund?) the department and save the taxpayers millions.

Again, you're already going to have more applicants than funding without spending a dime to market the program. And honestly, even if you'd have fewer applicants than money available, I'd like to see the maximum grant (per each business) increased before you blow the money on marketing a program that other counties haven't had trouble finding applicants for. The struggling small businesses need that money more than the Chamber does.

Even if you're going to argue that you need to market it, it's not a $175,000 marketing job. If you think it is a $175,000 marketing job, by all means ask the Chamber tonight the specifics of what they're going to do to market the program, then go ask a marketing firm how much they'd charge.

Council shouldn't approve anything until they - and the public - understands that answer.

In addition, why not wait to have the Chamber market it? Let DCED do it, or just (as another comment noted list an "online address and phone number for how/where to apply". If the response is overwhelming, you just allowed a dozen more businesses to get much-needed funding. If not, you can then decide whether additional marketing is needed, if you want to have a second round of applications, or if you'd rather increase the maximum grant to those that have already applied.

Anonymous said...

"I'd bring DCED in first and ask them before giving them yet another task. Perhaps they can do it. Perhaps not. I do not like an ad hoc committee made up of the businesses who will themselves be benefiting."


First, I'm not a fan of ad-hoc committees, but I think you could exclude anyone owning a business that's applying for the grant from being part of an ad-hoc committee.

More importantly, even if you'd have to (temporarily) add a person in DCED to focus solely on marketing and administering this program over the next few WEEKS, would you pay them $175,000 to do it?

Apparently, the county executive and Council would, since in effect that's what they're doing.

And if they're doing that with this little $4 million, what are they doing with the hundreds of millions of other dollars running through the county?

If you don't want to add another body, just paying someone in DCED a little overtime would still be much cheaper.

Bernie O'Hare said...

"This is the most stunning statement you've made in a while, and I'd like you to take a moment to actually think about what you just wrote."

I've written many statements far more stunning than that one. You propose some sort of "ad hoc" committee made up of small businesses to decide who gets the money, and that's just nuts. You are stating that the very businesses who benefit should decide how it is all doled out. A carpenter on this ad hoc committee could make sure he screws all competitors while awarding money to himself. If anyone should think about what he wrote, it is you. It is absurd. Even if you exclude someone from applying who participates on the committee, he can still use his position to screw the competition. That's what business does. Your proposal is poorly considered.

As far as having the DCED do the marketing, bring them in and ask. I do not think they will do as good a job at marketing as the Chamber, but maybe they can handle it. Maybe not. In know this. Council is no position to market and will end up with a big pot of $ to award to pals. In fact, I know this is already happening. It needs to be marketed. I do not want Council to have a big pot to award to those who are connected or running for office. I do not want the Exec to be in that position, either. The fairest way is by actively marketing the grant program by those who know what they are doing, and watching them to ensure they are not playing favorites.

I agree completely that Council should have the final say. They control the purse and should. But they lack the means to market or vet these applications. Their role is oversight.

Bernie O'Hare said...

" Businesses are already aware that the county has money to give out because other counties have already disbursed their funds without paying cronies to be a middleman."

I believe this is incorrect. So far as I know, no county has received the $.

Anonymous said...

"I do not want Council to have a big pot to award to those who are connected or running for office."

OK. So a group that can't keep a secret(county council) to save their soul is your main concern., yet King McClure who reigns with an iron fist is fine. His people do what he wants or out the door they go. He and Iannelli have a secret meeting and deals are made? You do realize there are many businesses that refuse to send their personal information to the Chamber bullies. What makes a private business country club so spotless? Who elected them? Who do they answer to?

If the county DCED can't handle most of this what good are they. Just another patronage dumping ground. Of course you will make any excuse and push any story that carries water for your boy McClure.

I am more worried about an secretive kingly executive pulling the strings then a group of elected officials. Of course at the end of the day you will praise whatever McClure proposes and damn the county council if they are opposed/ What else is new.

Would you pleas estop just immediately calling anything the guy does as the greatest plain the world.

Anonymous said...

What a scam. Election moony for the Chamber to help McClure!

Bernie O'Hare said...

Sure, McClure could use this to generate good will among voters. That's why Council is there. Council could use it as well. That's why McClure is there. Neither branch should have complete control.

Anonymous said...

That is way too much money to pay the Chamber.I agree there needs to be a watchdog here but correct me if I am wrong isn't the DCED's job Oversight or whatever you choose to call it, It is necessary.Or I fear we have campaighn monies

Anonymous said...

Bernie O'Hare said:

"I believe this is incorrect. So far as I know, no county has received the $."


Lancaster and other counties started their application program weeks ago, without a middleman skimming funds from businesses.

Go to RecoveryLancaster.com

Bernie O'Hare said...

Lancaster has yet to receive the $ or state guidance. Moreover, contrary to what you state here incorrectly, their chamber of commerce is very involved.

Bernie O'Hare said...

In fact, their plan is very similar to what McClure proposed.

Anonymous said...

They just awarded $10 million last night to 400 small businesses.

That's $25,000 for each business.

Their Chamber was involved, but didn't skim from the monies intended for small business relief.

What McClure and council are doing is a crime.

Anonymous said...

First phase of Lancaster fund was capped at $10 million, and was only available to businesses with 20 or fewer employees. That's what was awarded last night.

Phase 2 will be next with another $10 million for businesses with less than 100 employees.

McClure's proposal doesn't come close to resembling that.

Bernie O'Hare said...

That's because the first phase is a different program, and is actually run by the state. This was explained at the meeting you missed.

Anonymous said...

Hopefully McClure pays you well to wash his laundry for him.