Wake to spend $5M to help businesses hurt by COVID-19. What Durham and Orange are doing
Wake County plans to spend $5 million in federal money to help small businesses hurt by the spread of the coronavirus.
Details still need to be worked out, but the Wake County Board of Commissioners wants to spend $4 million for loans to small businesses and $1 million for sole proprietors including barbers and hair stylists.
“Coronavirus has taken its toll on our small businesses, and many of them are struggling to make ends meet,” Commissioner Matt Calabria said in a news release. “That’s why we’re working to provide them with the support they need to stay afloat as we weather this crisis together.”
Businesses must be located in Wake County and locally owned. They can’t be in bankruptcy or have open tax liens or judgments. And they must show loss of revenue. Other restrictions or stipulations may be added depending on the vendor Wake County picks to administer the loans.
A virtual public hearing is set for May 18.
Also Monday, the commissioners approved $2 million in additional funding to help people who are facing homelessness or who need help paying rent. The money comes from the federal Coronavirus Aid, Relief and Economic Security Act, and Wake County is asking to use more of its share for housing.
“We already had an affordable-housing crisis in Wake County, and with COVID-19 costing thousands of residents their jobs, the risk of homelessness is greater than ever,” Commissioner Jessica Holmes said. “These families need support now, which is why we’re moving quickly to expand programs to make sure everyone has a safe place to sleep at night.”
The city of Raleigh, meanwhile, has approved $1 million in grants for small businesses administered through the Carolina Small Business Development Fund and Wake Technical Community College. On Tuesday, Mayor Mary-Ann Baldwin said an additional $200,000 in private money has been donated to the effort.
The town of Apex approved $1 million for the N.C. Rural Center’s loan program for businesses in town limits.
Holly Springs is matching up to $15,000 in donations made to the Holly Springs Chamber of Commerce to support small businesses., and other Wake County towns are also working with their local chambers.
ORANGE COUNTY
The governments of Orange County and the town of Carrboro also have loan and grant programs for small businesses in their jurisdictions.
Orange County awarded $300,000 in grants and no-interest loans to small-business owners using money from the county’s quarter-cent Article 46 sales tax, a local tax increase voters approved in 2011 to be split between education and economic development.
In Carrboro, a review committee will meet May 22 to allocate the rest of a $475,000, no-interest loan program for local businesses and nonprofits serving town residents. Carrboro used the first round of funding to help 12 local businesses.
The program requires businesses to explain how they are trying to keep their employees. It is not open to small businesses that have received federal Small Business Administration funds.
The application deadline for Carrboro’s program was May 5.
DURHAM COUNTY
City of Durham officials say they want to take a more strategic approach. City Manager Tom Bonfield said Monday he plans to discuss a small business program with the City Council as part of the budget process in mid-May and will likely roll it out in June.
“I think we are being very cautious to not fall into the trap of acting quickly for the sake of acting quickly,” Bonfield told the City Council at budget meeting last month. City officials want to talk to some partners, evaluate federal and state programs and better understand the small business challenges and how the city can focus its efforts to help disadvantaged businesses, he said.
Mayor Steve Schewel said he agreed.
“We want to target the disadvantaged businesses that we know are most in need and are the least likely to access federal funding, including some undocumented business owners ... and historically disadvantaged businesses,” Schewel said at the meeting.
Durham County Manager Wendell Davis said the county is not currently planning a small business loan program.
This story was originally published May 4, 2020 at 8:17 PM.
