Biddeford awarded federal funds to help small businesses

BIDDEFORD — Twenty small businesses will get a boost from federal funding.

The City of Biddeford received a $276,000 Community Development Block Grant from money allocated to the Department of Housing and Urban Development through the Coronavirus Aid, Relief, and Economic Security, or CARES, Act.

The Community Development Block Grant, CDBG, Program awards annual grants to states, cities, and counties to create sustainable urban communities by providing safe and affordable living environments and expanding economic opportunities for low and moderate income people.

The CARES Act, signed into law on March 27, is an economic relief package to help alleviate the economic impacts of COVID-19.

The $276,000 of CDBG funding Biddeford received from the CARES Act is in addition to its annual $469,000 allocation.

Biddeford was the only municipality in York County to receive CARES Act funding through the CDBG program. Auburn, Bangor, Lewiston and Portland received funding, as did Cumberland County.

Planning and Development Director Mathew Eddy said information was gathered from surveys and public forums regarding where the needs were.

“What we concluded is that small businesses are falling through the cracks,” said Eddy.

Eddy said the money will be used to help 20 small businesses, each with a $12,500 grant. Businesses which receive money will have to adhere to specific guidelines and will be able to use it for specific costs including personnel, rent or mortgage and daily operational expenses. It cannot be used for new capital expenditures, said Eddy.

The funding is designed to help businesses maintain themselves through this difficult time, not expand.

“We’re trying to create a bridge without adding to the debt load,” said Eddy.

First priority will be given to small businesses with up to five employees in the downtown and mill districts, after which, businesses with five to 20 employees will be considered, he said.

Money will be distributed by the City of Biddeford and underwritten by the Southern Maine Finance Agency.

Before the money can be awarded to the businesses, the city council must hold a public hearing and vote. Eddy said this will happen in the next few weeks, and the city will work to distribute the money soon after the necessary city council procedures are completed.

Delilah Poupore, director of local economic development group Heart of Biddeford, said she’s already heard from a few businesses who are looking forward to the city rolling out this program.

“For the very small businesses, this funding will literally make the difference between them being able to continue operating as a business or closing,” said Poupore. “We really have to find as many creative ways as possible to keep our small business afloat while they adapt to all these changes.”