City in line for pandemic relief funds; mayor proposes giving up to 40 businesses $2,000 each for shortfalls

By Aaron Gershon
University of Kentucky School of Journalism and Media

The city of Midway can get more than $129,000 in for expenses related to the covid-19 pandemic, and Mayor Grayson Vandegrift has proposed funneling the money to small businesses.

The mayor said in an email to city council members Thursday that he plans to apply for over $49,000 to reimburse the city for the $40,000 it spent on the “Midway Bucks” voucher program and $9,000 for expenses such as hand sanitizer,  protective spray in city vehicles, masks and food programs.

Vandegrift said he will apply for $80,000 to “grant 40 businesses in Midway with $2.000 to help make up for the revenue they lost due to being forced to close or partially close. While I feel it is unlikely that more than 40 would apply, should that happen, I propose we award grants first to businesses that were forced to close their doors completely.”

He said that would be “clearly reimbursable,” more so than the voucher program, which “is not specifically spelled out” in the Coronavirus Aid, Relief and Economic Security Act, which appropriated the money. “I am very confident the voucher program will be reimbursed . . . because frankly, it’s that cutting edge,” Vandegrift write. “In reading a summary of the act, I do feel that it falls under the eligibility requirements.”

The mayor said the grant application process would be simple and “would likely verify that the business applying are in good standing with the city on taxes and plan to stay open.”

He said he would ask applicants to say how much revenue they normally make in April and May, “though we would not ask them to open their books to us,” and probably require each to report by year’s end how they used the money: “payroll, rent, supplies, debt, etc.”

Vandegrift said the grants “would give a much needed shot in the arm all at once for all Midway businesses, and help them stay open and contribute to our tax base and culture.”

When Council Member Sara Hicks asked if businesses in Midway Station would be eligible, Vandegrift said the grants would be available only to businesses with 50 or fewer employees.

Council Member John Holloway endorsed the idea in an email, with a caveat: “I like the idea that they can apply for funds in proportion to how much loss they've actually had rather than giving everyone the same amount, but only if we can determine a way to do that without causing infighting over the amounts.  Not everyone has been impacted in the same way, or to the same degree. Things are generally more complex than they first appear.”

Vandegrift said the council will discuss the plan at its meeting June 15.