During its April 15 work session, the Archuleta County Board of County Commissioners (BoCC) discussed options as to how the grant portion of its business assistance funds will be managed and distributed.
Pagosa Springs Community Development Corporation (PSCDC) Executive Director Emily Lashbrooke explained the business assistance program is a partnership between the Pagosa Springs Main Street Advisory Board, PSCDC and Region 9 Economic Development District of Southwest Colorado.
Region 9 and the PSCDC have earmarked a total of $150,000 available to businesses through a low-interest loan program during the U.S. 160 reconstruction project.
Lashbrooke also explained that she was requested to present the structure and process of having the county’s grant portion be managed under the same structure as Region 9’s low-interest loan option.
“Please know that we in no way, shape or form want to manage the county’s money — ever,” Lashbrooke said, adding, “The funding will always remain within the county.”
She noted that she was presenting the process of how the applications will be received and awarded.
She noted the county could also create its own separate process specifically for the grants.
Lashbrooke explained that, for the process through Region 9 and the PSCDC, applications will be available on the PSCDC’s website and possibly on Region 9’s, “if that is up in time.”
Once a month, a committee of five local stakeholders will review applications, Lashbrooke explained, noting the application is a “duplication” of the one used during the COVID-19 pandemic, “However, it does require to show the financial need and distress of the business before any funds are awarded.”
Lashbrooke also noted the members of the committee reviewing applications will include Shelly Cox, Sherry Waner, Pennie DeClark and two Region 9 representatives.
Lashbrooke went on to explain the loan program will provide $1,000 to $10,000 per business with a zero percent interest rate for the first six months, followed by a 1 percent interest rate the second six months before returning to a “regular loan.”
She added the loan committee will accept and award applications every month until November, when construction shuts down for the winter, or until the funds run out.
“They will assess the need,” Lashbrooke said of the loan committee, noting that the business will be asked to write a narrative “on their situation and why they need this funding.”
She then explained that businesses would have three options when applying for funds: loan, grant or for a “50/50” mix of a loan and a grant.
She mentioned that after the committee approves an application, the county would then be notified, explaining that businesses would need to provide documents such as balance sheets for the current and previous year “to show us the financial distress.”
Lashbrooke added, “Or, you are completely welcome to set up your own process. We’re just trying to reduce duplication and confusion.”
Commissioner Warren Brown commented that the process is “one of the most important pieces here,” expressing the need for a “real fairness across the board” while noting these funds were “never intended to be a business subsidy.”
Commissioner Veronica Medina explained that she had spoken with the County Finance Director Chad Eaton and County Manager Jack Harper about other options as far as the county managing the grant portion of the assistance funds in house.
“When we originally talked about it, I never envisioned this to be a joint venture,” Medina said, noting that she has heard from multiple businesses, many times, that “they’re really not looking for loans.”
She explained that having the loans as an option is “great,” but expressed concerns in having the loans and grants managed jointly.
Commenting on the makeup of the application committee proposed by Lashbrooke, Medina stated, “I feel like this is a county thing.”
She continued, “It should stay in house,” adding, “I don’t think it needs to be a joint thing.”
Commissioner John Ranson commented, “I think it’s important to keep this out of our hands, politically.”
He explained that if the county is involved in the decision-making process it “could be political,” while expressing support for the three options presented by Lashbrooke.
“I’d like to see it outside of here,” Ranson added.
Lashbrooke weighed in, stating, “It’s OK if it doesn’t mend together,” and if the county decides to keep its portion separate, businesses will have two processes to go through.
Lashbrooke also mentioned the First Southwest Community Fund “is looking at contributing an additional $100,000 to the loan fund.”
Medina commented that the decision ultimately comes back to the BoCC, noting, “We’re involved already,” with the county having the idea to set aside funds for this program.
“This is something that this board took on and wanted to do, and I think we should continue with it,” Medina said, adding that she would like to use some of the funds to be more “proactive” in finding ways to generate business downtown.
“I would really like for us to see it out,” Medina said.
“I completely respect that,” Lashbrooke replied, asking for direction and noting she was receiving “mixed signals” from the commissioners.
Lashbrooke also noted that the loan program will be launched on May 15.
Brown indicated the BoCC may vote on how its grant funds will be managed during its regular meeting scheduled for Tuesday, May 6, at 1:30 p.m. at the county’s administration building.
Interviews
In a later interview, Medina explained that the process in which the county would review and make its decisions for awarding grants is “still something that we have to figure out,” adding that she was unaware of what the PSCDC was asked to do and “didn’t realize that was the direction they were going.”
Medina indicated that Harper was working with the Main Street Advisory Board to create an application for the county’s use.
Medina also explained that the $100,000 set aside for downtown business grants was discussed during the county’s 2025 budgeting process, noting that before Ranson took office he mentioned the idea of having funds put aside to help businesses during the reconstruction project.
Medina explained that keeping in the spirit of all the departments “tightening our belt,” the $100,000 in funds set aside came from the commissioners’ budget, adding it’s what the county could do as “a starting place.”
Medina added that the county is not going “to be able to solve all the issues that may arise,” but that it is there to help, “whatever that might look like.”
Medina restated that a portion of the funds could be used for more “proactive” measures in generating more business downtown.
“Entrepreneurs in our community have great ideas,” she said.
In a separate interview, Brown explained that the business assistance grants were factored in when the 2025 budget was approved.
As far as how he would prefer those funds be managed, Brown explained he could agree with either option.
Brown mentioned that it “makes sense” with Region 9 already having a process in place, noting the decision-making committee will feature three people from the community as well two Region 9 representatives.
“That would be my preference,” Brown added, explaining that he does not feel it is necessary to duplicate efforts.
He also explained that he expects a performance clause to be included with the grants and loans so that taxpayers know a business is getting funds and not “closing up same day, and they’re just taking the money and going.”
Brown explained again that as long as the BoCC has a say in awarding the grants he would prefer to not duplicate efforts.
Brown also mentioned that “we have a lot of needs in our community,” and that it could be argued to use the funds elsewhere.
He explained that, in his view, “We have a tremendous amount of tax dollars that are generated from our downtown business,” and that this is an “opportunity for the county to help our businesses stay in business and continue to be profitable for themselves and to continue to submit revenues in form of taxes to both the county and the town.”
He explained that the county’s operations are supported through tax dollars and that the county does not generate its own funds.
“We have tax dollars,” Brown said, adding, “I think we are actively participating in the well-being of our entire community by dedicating these funds for this use.”
In a separate interview, Ranson stated that his preference would be to keep the grant procedure with the PSCDC, Main Street and Region 9.
“I really don’t care to see this be in any way, shape or form political,” Ranson said, noting it could be viewed as the county making a decision to give taxpayer money to people “we know.”
Ranson reiterated that he does not want to see any kind of politics involved and avoid “any smell of helping friends.”
Ranson also explained that the idea for earmarking funds for this program has been discussed for “quite a while,” explaining that before he took office he expressed the idea of having a program for the downtown business “that wasn’t just a loan.”
He explained that struggling businesses experiencing financial difficulties likely do not want to borrow money.
Ranson added that he envisions these funds being used in an emergency-type of situation and that it’s not “free money” for a business to use to expand.
He noted that however the funds are managed, he hopes it goes to businesses that need it in order to get through this “more difficult period.”
When asked about the amount of funds set aside for grants, Ranson stated, “I believe we have more available if we can come up with a good thought process.”
He added that he’s “not a fan of spending,” but that this is “investing in our people and our community,” mentioning he hopes the county can do more over the two-year construction period.
clayton@pagosasun.com
>