Norton awaits federal virus recovery funds

by JEFF LESTER • INTERIM EDITOR

Norton expects to get more than $347,300 from the federal government to help the city cope with costs of the COVID-19 virus emergency, according to City Manager Fred Ramey.

He discussed that and other virus-related matters with city council Tuesday night.

The funds will come from the Coronavirus Aid, Relief and Economic Security (CARES) Act, which provides $150 billion to help state and local governments, Ramey explained.

The money can be spent to cover “necessary expenditures” incurred due to the emergency between March 1 and Dec. 30. However, costs must not have been accounted for in the most recent approved state or local budget as of March 27, when the CARES Act took effect.

At this point, Ramey told council, the funds cannot be used to make up for local revenue shortfalls. State and local governments have asked the federal government to lift that restriction or to provide more funds to cover lost income.

According to state government, 50 percent of the locally-based CARES Act funds will be distributed to counties and cities around June 1.

NORTON STRONG

As of Tuesday, Ramey said, the city’s Norton Strong loan program for businesses harmed by the COVID-19 emergency had distributed $247,500 of loan funds to 50 applicants.

Council approved the program in early April, using funds loaned from Norton’s Rural Business Enterprise Grant Program to the city Industrial Development Authority, along with money from the Lenowisco Planning District Commission and the Virginia Coalfield Economic Development Authority.

Loans were offered for up to $5,000 at zero interest, with no payments due for six months.