The Brunswick Town Council on Monday night approved a Community Development Block Grant MicroEnterprise Assistance Program contract amendment that would grant $72,000 to local businesses Anew Studio and Fair Winds, Inc.

According to Linda Smith, business development manager, the Maine Department of Economic and Community Development allows municipalities to apply for a Micro- Enterprise Assistance Program up to $150,000 in a given program year.

In March, the DECD approved a contract awarding the town $50,000 on behalf of local business applicant Blue Dog Day Care through the program.

Shortly after, Anew Studio and Fair Winds, Inc. also approached DECD and the town to apply for the program and received approval — with $22,000 given to Anew Studio and $50,000 to Fair Winds, Inc.

According to Smith, beauty salon Anew Studio hopes to improve their facility, extend their lease and enhance their marketing potential through the grant.

Fair Winds, Inc. plans on using the funds to improve building property that was purchased for lab expansion and analysis work on shellfish toxicity.

At the meeting, Councilor Dan Harris, who voted in opposition to the amendment, said he was concerned that Anew Studio in particular would use the grant to benefit its facilities without increasing employment opportunities, creating competition among other local salons.

“There would be no increase in a labor force as a result of this,” Harris said. “We’ve got four or five competitors in Brunswick … and so if her ability to compete is enhanced, I imagine it stands to reason that she’d be taking business from others.”

Smith clarified that increasing employment opportunities is not a grant qualification since applicants are already at a low or moderate income.

However, Harris asked the council whether it was appropriate to take public money for private businesses to use to compete against other businesses.

Councilor Jane Millett disagreed with Harris.

“We are all in a competitive environment every single day,” she said. “I don’t see that as an argument against this approval. I think this application is within the parameters of a CDBG grant and I’m certainly in favor of it.”

Councilman John Richardson added that grant applicants are usually at more of a disadvantage against their competitors because of their low income status — something the grant will help them overcome.

“They are not on the same level playing field as their competitors,” he said. “This is an opportunity to provide them … with an opportunity to get to the same playing field to compete with their competitors.”

Chairwoman Sarah Brayman also agreed with Richardson.

“I do admire folks who go out and look for various resources,” Brayman said. “To get this money, it’s a long process, it’s a competitive process, and it’s one of the lines that as a state and nation we have said we are willing to put these lines of money forward.”

Money for …

BEAUTY SALON Anew Studio hopes to improve their facility, extend their lease and enhance their marketing potential through the grant.

FAIR WINDS, INC. plans on using the funds to improve building property that was purchased for lab expansion and analysis work on shellfish toxicity.