Cavalier’s Stimulus Program Keeps Local Economy Moving

The past year has certainly been taxing on everyone. Beyond the health-related impacts of the pandemic, small businesses have been amongst the hardest hit by the events of this year. The small town of Cavalier in North Dakota took proactive steps to help the businesses in their community during these tough times with their own stimulus program.

Confronting the Retail Apocalypse

The “retail apocalypse” was already upon us before the pandemic hit. The events of this year just exacerbated the issue. Fast food restaurants and grocery store chains with online ordering are actually reaping larger profits than before the pandemic. Meanwhile, the juggernauts of Walmart and Amazon just continued to increase the strength of their grip on the retail sector. The uphill battle that local businesses had in front of them became increasingly worse this past year.

Community leaders have been tirelessly looking for ways to save their dying local retail businesses. Back in June we looked at how community leaders in Hastings, Nebraska, were taking steps to help with the Hastings Give Back Program. We also looked at Sarpy County’s Self Care Saturday as another effort to help local businesses.

Cavalier North Dakota, By afiler; Creative Commons

Cavalier’s Stimulus Program Concept

Community leaders in Cavalier, North Dakota, decided to take matters into their own hands as well. After the federal stimulus funding was dispersed to residents in April, Mayor Lacey Hinkle and one of the councilmembers conceived of an idea to use those dollars to help the local economy. They then sat down with an auditor to hammer out the details. What resulted from their efforts was the Cavalier Stimulus Program.

The Cavalier Stimulus Program allowed shoppers making local purchases of up to $1,000 to be reimbursed for 10% of the total spent. That 10% “rebate” was provided in the form of “Cavalier Bucks”, which could only be spent in participating Cavalier businesses. In a way, the program operated much like the Menard’s home improvement chain’s 11% rebate program.

To start the process, participants would drop off their receipts at City Hall along with a simple form. Within a day or two, participants would be allowed to pick up their rebate in the form of “Cavalier Bucks”. The Cavalier Bucks provided back to the participants were essentially a form of currency that could only be spent locally. Hence, the program ensured that the stimulus funding helped local businesses.

Funding for the program comes from Cavalier’s Growth Fund, which itself is funded by city sales tax dollars. 

Exceeding Expectations

The Cavalier Stimulus Program ran for five months and resulted in over $162,000 spent locally by 117 Cavalier Bucks participants. “It exceeded our expectations,” stated Kelli Truver, City Administrator/Auditor. “We got a surprising number of people from out of town.” Of the 117 participants, nearly 20 were from out of town. They spent nearly $20,000 in the community as a result.

Also, although the 10% rebate was capped at the first $1,000 in purchases, participants were spending well beyond that level. In essence, this rebate served as an incentive to drive participants to make large purchases that they may have previously been reluctant to move forward with.

Cavalier Cinema, By Northernraider83; Creative Commons

Award Winning Effort

For their efforts the City of Cavalier earned the Governor’s Choice Project of the Year – Rural Community award. The award was announced by Governor Doug Burgum during the Governor’s Choice Economic Development Awards, where are number of North Dakota’s communities were spotlighted for their efforts.

“These award recipients work tirelessly to make sure North Dakota can compete in a global economy, while also fostering a business-friendly environment and making the most of existing infrastructure at a time when investment in our communities, a skilled workforce and 21^st century jobs are needed,” Burgum said. “We thank them for their leadership and dedication to filling North Dakota with healthy, vibrant communities.”

Check out their award celebration video below:

The Cavalier Stimulus Program ended in September. However, you can still buy Cavalier Bucks for use at local businesses. Essentially, a buy-local gift card that ensures the money spent on Cavalier Bucks remains in the local economy.

With the roll out of the latest federal stimulus package, community leaders are contemplating restarting the program to keep those dollars in town. And they are not the only ones looking to keep spending from stimulus payments in town. A few other communities have reached out to Cavalier to inquire on the program as they seek to help their own local businesses.

When you have a good idea, word gets around.