NEWARK, NJ — Newark residents and small businesses may be eligible to receive financial assistance after the city this week announced that it received $88.3 million in funding as part of the American Rescue Plan Act to overcome the impact of COVID-19 on the local economy.

The funding, city officials said, will be used to stabilize the city’s finances due to lost revenue, and to get monies into the hands of residents and small businesses that suffered as a result of the pandemic. The city will also use the monies to address homelessness, affordable housing, and economic and food insecurity.

“This is the latest step by the federal government in supporting our economic recovery from the stress and damage of COVID-19,” Newark Mayor Ras Baraka said. “We will put these funds in the hands of the people of our city, to provide relief and empower them with the financial tools they need to restart our economy.”

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Before the money is dispersed to residents and business owners, TAPinto Newark reached out to city officials to find out how the federal aid will be managed and allocated.

When asked what the specific procedure will be to apply for the aid and how it will be verified, Crystal Rosa, press secretary for the city’s Department of Communications, said that the city’s fiscal team is still in the process of finalizing procedures for multiple parties that will be eligible for the aid.

Procedures that have yet to be finalized include rental assistance; direct compensation to residents affected by the pandemic; small business assistance for businesses other than restaurants, which will have separate funding from the state and Feds; and development assistance for low- and moderate-income housing, to accommodate those who were adversely affected by COVID. **BULLSEYE

“We anticipate that the application process for rental assistance and business assistance will be similar to the process used previously,” Rosa said.

The federal monies will be managed by the city’s fiscal team under the direction of city Business Administrator Eric Pennington, officials said. The funds will be allocated by Pennington and the fiscal team which includes members from his office, the city Finance Director Danielle Smith and city Budget Director Darlene Tate.

As the money is allocated, city officials said there will be administrative costs associated with managing and dispensing funds. However, Rosa noted that the city will work to minimize those costs “to get the maximum amount of dollars into the hands of residents and local businesses who need it most.” **STANDARD

“If the city uses an outside entity to facilitate dispensing funds, that entity will be selected with an eye toward the objective of getting money to the people quickly and equitably,” she said. “The city will require that local residents be hired by any outside entity selected to administer the disbursement of funds.”

Once the monies are given to residents and business owners, officials said that the federal government requires regular reporting as well. The routine reports, Rosa explained, are part of an interim rule put out by the Treasury Department.

As plans are being finalized to set up the application procedures, officials said that the city will also host several virtual meetings with residents will discuss how funds will be used. **BULLSEYE

The city will host the virtual community meetings on its Facebook page on:

May 25, 6:30 p.m.
June 2, 6:30 p.m.
June 3, Noon

Translation services will be made available, officials said.

The city of Newark’s Facebook page is https://www.facebook.com/CityofNewark/.

For more information on the American Rescue Plan, visit American-Rescue-Plan-Fact-Sheet.pdf (whitehouse.gov).