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City presenters propose converting ARPA small-business loans into $2.2M grant program; council seeks documents
Summary
City presenters outlined a retooled ARPA-funded small-business program that would convert prior loan arrangements into grants across five tracks and project about $2.2 million in awards; council members asked for original contracts and said they want county coordination and clearer documentation.
Montgomery City Council work-session presenters outlined a restructured ARPA-funded small‑business program that would convert previously planned loans into grants and deliver what the presenters said would be roughly $2.2 million in awards to local businesses.
At the session, Frank Robinson introduced the plan and invited Robin Booth of Booth Management Consulting to explain program details: eligibility (one business per owner, businesses with roughly 1–50 employees and under $5 million in annual revenue), five grant tracks (capital improvements, relocation assistance, incubator support, payroll, and rent assistance), and a reimbursement-based process with monitoring and technical assistance through a local partner (ASBA). Booth said the program must comply with federal uniform-guidance requirements and warned that "these monies have to be spent by December 31st, 2026," adding that the program is designed to prioritize projects already ready to deploy.
Robinson and Booth told the council that awards would be rolling and that city and county officials would have the final decision on recommendations from the program manager and review team. City staff and the presenters said projects with large cost volatility or insufficient readiness would not necessarily qualify; applications must include estimates and supporting documentation to demonstrate capacity to execute projects.
Council members pressed for clarity on several points: why the city is shifting from loans to grants; whether the proposal had been coordinated with county partners; how much money is available; and how the program would respond to construction inflation. Mr. Brown, speaking for city staff, said the reallocation process had been months in development and that the city had reobligated $3 million overall while projecting $2.2 million in awards for the new grant pools. He said the city has been working quickly because of the federal deadline to obligate and spend ARPA funds.
Council members asked that staff provide the original contract with Hope (the prior vendor referenced during discussion) and other backup documents. Several members requested a joint Montgomery Thrive meeting with county commissioners to review reallocation options and legal constraints before any final action. Presenters agreed to supply the presentation and the original contract and to coordinate follow-up meetings.
Next steps: city staff said they would deliver the requested documents and coordinate a Montgomery Thrive meeting; the funding reallocation and any related resolutions will return for formal consideration at the regular council meeting. No formal vote was recorded during the work session.
