Gary Mayor Eddie Melton has watched small businesses struggle more as prices rise nationwide, he said, and he wanted to help in some way.
“I’m hearing more and more from small businesses, not just in Gary, but around the country,” Melton said. “I came up with the concept of providing a lifeline to some of these smaller businesses that may not have the capital to make small improvements to their equipment, to address staffing or address some operational needs. Sometimes folks just need a hand up to help get over the hump.”
The city of Gary launched its Lifeline Grant Program, a small business investment initiative that will help strengthen the city’s businesses and entrepreneurs. Small business operators can apply for the $25,000 grant through June 1, according to the city’s website.
Eligible businesses must be located in Gary and be in good standing with the city, be in business for at least a year, and they must have fewer than 20 employees. They also must have annual revenues of more than $1,000 and less than $3 million and be in good standing with state and local licensing and tax requirements.
“We wanted to put some criteria that would be fair for the smaller folks and also for the mid-tier businesses as well,” Melton said.
About $400,000 is available for Gary businesses through the lifeline program, Melton said.
The idea for the lifeline program came from American Rescue Plan Act funds, Melton said.
“There was still some funding remaining in the process, so it was approved by the council to help support small businesses,” Melton said. “We wanted to stay true to those American Rescue Plan dollars that were to help those impacted negatively, especially post-COVID.”
When it became law in March 2021, ARPA provided about $350 million in additional state funding to state and local governments, according to the Government Finance Officers Association. Eligible uses of funds include revenue replacement, COVID-19 expenditures, premium pay for essential workers, and investments in water, sewer and broadband infrastructure.
ARPA funds can’t be used to directly or indirectly offset tax reductions and can’t be deposited into a pension fund. The money must be spent by the end of 2026.
Hard Rock Casino Northern Indiana gave more than $50,000 to the grant program as well, Melton added.
“The transformation that is going on right now in Gary is exciting to witness,” Matt Schuffert, president of Hard Rock Casino Northern Indiana, said in a statement. “Hard Rock is supporting the Gary Lifeline Grant Program because it will help local businesses succeed, which will lead to more jobs and even more investment in Gary. When Gary succeeds, we all succeed.”
Representatives from the city of Gary, Legacy Foundation and Indiana University Northwest are part of a committee to help choose grant recipients.
“Indiana University Northwest is committed to being an active partner in the City of Gary’s economic and business development efforts,” a university statement said. “As a higher education institution rooted in this community, we are proud to lend our expertise and perspective in support of the initiatives that help strengthen local small businesses and invest in the city’s future.”
Partnerships with those in Gary and Lake County are essential to the success of a program like the Lifeline Grant Program, Melton said.
“They’ve all been a true partner,” Melton said. “They’ve been able to provide resources to the community to help small businesses build their capacity, so we appreciate them.”
Business operators can find more information and apply at gary.gov/lifeline-grant.
mwilkins@chicagotribune.com
