Grants of up to $50,000 to help local manufacturers cover their equipment costs are in the works through the Niagara County Center for Economic Development.
The Niagara County Legislature is on track to approve allocation of $1 million of the county’s American Rescue Plan Act (ARPA) funding for a new initiative that has been dubbed the Niagara County Production Program.
According to county economic development Commissioner Mike Casale, his office is writing guidelines for the program, which will use ARPA funds to help manufacturers “create efficiencies” through automation on the factory floor.
Eligible manufacturers will have to abide by ARPA requirements including proving that their business was affected by the Covid pandemic and that they’re making use of green technology, trying to break into new markets and attract new customers, hiring and “upscaling” employees.
An example of upscaling is: “An employee may be working at a menial job, but could be trained on a machine and go from making a minimum wage to a livable wage,” said Andrea Klyczek, assistant director of the Niagara County Industrial Development Agency.
The production program cleared the legislature’s administration committee with no dissenting votes Tuesday night. A resolution authorizing the program will go to a vote of the full legislature next week.
Administration committee chair David Godfrey said the program is a way to “keep (businesses) competitive” through the upgrading of their technology.
“As an example, take a machine shop: Old technology, old machines. We want to help them upgrade,” he said.
The production grants are matching grants, as in, the county chips in $50,000 and the receiving business commits to spending at least that much on equipment. According to Klyzcek, NCIDA offers low-interest loans to businesses trying to bounce back from the pandemic.
Casale noted that production equipment may range from hundreds of thousands of dollars to more than $1 million per piece, and the county’s production program would “take the edge off” and help keep businesses operating and providing jobs in Niagara County.
Klyzcek said the county hopes to roll out the program in February.