The Price-based organization had put together a $700,000 investment fund that helped disabled and low-income people in southeastern Utah start small businesses. But lawmakers did not replenish the fund last fiscal year - and this year supporters could not get a legislative hearing.
"You get the biggest bang for the buck in helping small businesses," said Karl Kraync, program chairman for the now-defunct Southeastern Utah Small Business Development Fund. "And in rural counties that face additional challenges, helping get a small business started makes even more sense."
The fund had helped Percy and Janice Mounteer replace an old coal-fired heater with a new gas furnace at the Star Theatre in the hamlet of Huntington. It is Emery County's only theater.
"Rural routes face disasters and layoffs," said Janice Mounteer. "Even a small seed grant can make a big difference."
Other businesses that benefited from the program since its inception in 2001 included auto-body repair, hairdressing and picture-frame shops.
Sen. Mike Dmitrich, D-Price, took the blame for failing to get the group on this year's legislative agenda.
"I didn't have a lot of hope anyway," said Dmitrich. "If the Legislature wouldn't fund it last year when they had a lot more money, there was no reason to think there'd be any better chance this year."
Legislative auditors said in 2006 that economic benefits from the fund exceeded program costs by more than $800,000 - twice the amount of total project funding. Auditors also said that a sampling of 19 businesses in the program showed $1.6 million went into local economies and created 59 jobs.
With the fund depleted, advocates have switched their focus, creating the Business Expansion and Retention projects or BEAR, with an annual budget of about $14,000 in donations. Volunteers survey local business in Carbon and Emery counties, asking about special needs. Problems are then addressed, using resources from the College of Eastern Utah or area businesses.
In Helper, for instance, business owners wanted more expertise in marketing. Marketing classes were then offered in the town library.
The group also identified $750,000 in tax credits that several local businesses were unaware of.
"We're still here, we're just in a different form," said Kraync, who runs Kraync Motor Co., in Price. "We've been sustained by volunteer efforts from local agencies and businesses. We didn't get funded - but we didn't die."
We're still here, we're just in a different form. We've been sustained by volunteer efforts from local agencies and businesses. We didn't get funded - but we didn't die.
