$10M grant program to support businesses affected by border closure with Canada

COURTESY / MDOT A new $10 million grant program will support charter transportation and certain customer-facing businesses affected by the U.S.-Canada border crossing. Seen here is the Madawaska-Edmundston International Bridge between Maine and Canada.

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By Staff

A new $10 million economic recovery grant program is designed to support charter transportation businesses statewide and customer-facing businesses within a 25-mile-drive of a U.S.-Canada border crossing.

Gov. Janet Mills announced the program Thursday.

The program is funded by the federal CARES Act Coronavirus Relief Funds and is called the Charter Transportation and Border Business Assistance Grant Program.

The goal is to support the economic recovery of businesses disrupted by the extended closure of the border, according to a news release.

On Aug. 9, Canada opens its border to U.S. citizens and permanent residents who meet specific criteria to qualify as fully vaccinated.

But in July, the Biden administration announced it will extend nonessential travel restrictions to Canada and Mexico until at least Aug. 21.

In developing the program, the Department of Economic and Community Development drew on recommendations from the tourism, hospitality and retail representatives.

The program is expected to address industry segments that have had unique challenges and may not have qualified for other assistance programs.

The association had a voice in the development of the program.

“Maine's diverse tourism industry relies on the success of all regions and segments for a healthy economy; and helping the charter and motorcoach segments which suffered greatly last year and those that have been slower to recover because of their location to the border of Canada is tremendously beneficial,” Tony Cameron, CEO of Maine Tourism Association, said in the release.

The program will award financial relief up to $100,000 to charter transportation, land and sea excursion and sightseeing, and port harbor businesses statewide and customer-facing businesses and organizations that are open to the public and within 25 miles driving distance of a U.S.-Canada border crossing. They include retail, trade and food services businesses.

Priority will be given to businesses that have not received Coronavirus Relief Funds funds to date.

The program will help alleviate some of the impacts of lost Canadian revenues along the U.S.-Canada border, said Paul Towle, president and CEO of Aroostook Partnership.

“Aroostook County businesses have been uniquely impacted by the prolonged border closure because we are bordered on the sides by Canada and, for many, Canadian customers have traditionally provided a significant portion of their revenues,” Towle said.

Heather Johnson, commissioner of the Department of Economic and Community Development, said the closure has created unprecedented economic challenges in service-based communities across much of northern Maine.

“The Charter Transportation and Border Business Grant Program will provide targeted support to border businesses, as well as charter transportation businesses statewide, who are most in need,” Johnson said.

As with other economic development grants, funds may be used to cover expenses, including payroll costs and expenses; rent or mortgage payments for business facilities; utilities payments; necessary operating expenses; expenses incurred to replenish inventory or other necessary re-opening expenses; purchase of personal protective equipment required by the business or business related equipment. Funds must be spent on operations that are strictly within Maine. Recipients are liable for misuse of funds, and the grants are subject to audit.

“Maine’s border businesses rely on tourism from our northern neighbors to make ends meet, but with the federal government’s unfortunate decision to extend the border closure, traffic from Canada will continue to be limited,” Mills said.

“I hope this program will provide at least a small amount of financial relief to sustain these businesses through these difficult times, and I continue to urge the U.S. government to safely open the border.”

The program opened Aug. 12. The application portal, on the Department of Economic and Community Development’s website, will remain open until 11:59 p.m. on Sept. 13. Applications will be reviewed, and final determinations made after the portal closing date. If selected for a grant, notice of the amount will be sent out via email.

For more information, click here.

Jobs and recovery program

The state also plans to distribute additional federal funds under the Maine Jobs & Recovery Plan, once it takes effect in October, to support the economic recovery of small businesses statewide, she added.

Mills signed legislation in July to implement the plan, which includes $66 million in business economic recovery grants, backed by federal funding allocated to Maine by the American Rescue Plan.

Previous programs

The two new programs come on the heels of previous programs, which included:

• Phase 1 of the Mills administration’s Maine Economic Recovery Grant Program, launched in August 2020, which awarded 2,407 businesses $120 million. Awards averaged just over $49,000. The hospitality sector, particularly lodging and accommodations, represented the largest percentage of recipients, drawing 35% of the awards.

• Phase 2 of the Maine Economic Recovery Grant Program Maine Economic Recovery Grant Program launched in September 2020. It awarded 1,244 businesses grants totaling $53.9 million. Awards averaged just over $43,000 .

• In December 2020, the Mills administration launched the Tourism, Hospitality & Recovery Grant program, which awarded 1,642 tourism, retail and hospitality businesses a total of $52.9 million in additional support. Awards averaged just over $32,000. 