The Jamestown Local Development Corp. recently approved $500,000 in American Rescue Plan Act funding for six businesses under the Equipment and Machine Upgrades grant program.

The six businesses that received grant funding through the Equipment and Machine Upgrades grant were Colecraft Commercial Furnishings, Dawson Metal Company, El Greco Woodworking, Inc., International Ordnance Technologies, National Wire & Metal Tech Inc., and Crown Street Roasting Company. Each of the applicants were awarded $92,500, except Crown Street Roasting Company, as Crown Street Roasting Company’s project was significantly smaller and less costly than the projects of the other businesses.

“The purpose of the Equipment and Machinery grant is to private businesses with the capital to assist in procurement of machines that will directly impact operations by increasing production, manufacturing system efficiencies and expand opportunities in other segments of the manufacturing industry,” Tim O’Dell, grants manager for the Department of Development, said.

O’Dell said grant applications were accepted from February 24 to March 24. During that time, 18 businesses were directly contacted by the city regarding the application process. While Crystal Surdyk, city director of development explained that the grant program was open to the public for any business in Jamestown to apply, the 18 business directly notified by the city had either previously inquired or shown interest in potential grant opportunities through the city.

Of the seven businesses that applied for the Equipment and Machine Upgrades grant, six were approved by the Department of Development and recommended to the JLDC board for final approval.

O’Dell highlighted the potential impact of the six applicants prior to the JLDC board’s consideration of the grant applications.

“Just for some statistics based on these six applicants, between all of them, the projected jobs created that they have committed to in their applications would be 29 full-time jobs and three part-time jobs,” he said. “In factoring into how much people these businesses employ, for jobs retained it would be 163 full-time jobs and five part-time jobs.”

The project proposed by Colecraft Commercial Furnishings is expected to cost $361,792. O’Dell said the business has committed to creating 10 additional full-time jobs. Currently, Colecraft Commercial Furnishings has 30 full-time employees. The improvements to the business are expected to increase production capacity by 400% and decrease the cost of direct labor by 50%.

Dawson Metal Company is planning to hire three additional full-time employees through a $134,900 project. Currently, the business employs 78 full-time employees. O’Dell said the new equipment that will be purchased with the grant funding will help Dawson Metal Company become more competitive and give them an increased capacity to serve new customers and increase sales.

El Greco Woodworking will complete a $143,952 project. Through the grant, El Greco Woodworking is planning on hiring two additional full-time to better address its high volume of purchase orders. The business currently has 17 full-time employees. The new machinery grant will also allow the business to launch a new category of sales.

“It’s worth noting too that El Greco, 100% of the revenue comes from outside of the Jamestown and Western New York Region, and all of their dollars brought into the area are from outside sources,” O’Dell said.

International Ordnance Technologies have projected that the company will create five to 10 full-time jobs with its $226,600 project. Currently, the business has 23 full-time employees and one part-time employee. The equipment acquired through the grant funding will allow International Ordnance Technologies to purchase equipment to make the company more efficient and more competitive by increasing production.

National Wire & Metal Tech’s project is expected to cost $320,000. O’Dell explained that the plan is for the business to create anywhere from one to four new full-time jobs. Currently, the business employs 15 full-time employees. The grant funding will allow National Wire & Metal Tech to purchase new machines that will significantly increase its efficiency for both new and existing customers.

Crown Street Roasting Company’s project is expected to cost $50,000. The business is planning to create three new part-time jobs in addition to its two full-time employees and five part-time employees. Crown Street Roasting Company’s goal is to purchase updated and larger equipment, such as a new roaster that will have triple the capacity of its current roaster, which would decrease production time and increase the business’s production capabilities.

Following O’Dell’s presentation, Surdyk explained that the Equipment and Machine Upgrades grant program involves a 25% match required by the applicants, with up to 75% of the cost covered under the grant from the JLDC.

While the $92,500 grant award recommendation by the Department of Development for five of the six awardees does not represent the full 75% match eligible under the grant program, Surdyk said the number was determined based on trying to make it “as close to the top amount” while also staying within the grant program’s $500,000 allocation. On the other hand, Crown Street Roasting’s $37,500 grant award represents the “top amount” the business was eligible for with its project application.

Prior to voting, City Councilwoman Kim Ecklund, R-At Large, questioned whether the larger-scale business applications had secured other funding to cover the cost of the projects. Surdyk said the businesses have each secured additional funding to complete the projects.

Mayor Eddie Sundquist also reminded JLDC board members that the job numbers included with the applications are “benchmarks” that businesses have to meet to avoid any potential “clawback” of funding.

The JLDC board voted unanimously to approve each of the business applications under the Equipment and Machine Upgrades grant program.