Durham small businesses press city and county to increase relief fund to $4 million
Small-business owners in Durham asked city and county leaders Friday to increase a planned $1 million loan fund to $4 million, saying local officials aren’t doing enough to help them survive the coronavirus pandemic.
The Durham Small Business Coalition, meeting online with the mayor, City Council and members of the Durham County Board of Commissioners, asked the city to double a $1 million fund approved last week and the county to match it.
“We ask that you provide us with the urgent support and aid we need to adapt our businesses so we can keep our employees and customers safe and survive this crisis,” said Leonardo Williams, co-owner of Zweli’s restaurant. “We are not used to asking, but now we must.”
The City Council last week asked the city’s Office of Economic and Workforce Development to create a plan for the $1 million relief program by June 4. But small-business owners on Friday’s panel said the city hasn’t acted urgently or provided any concrete solutions.
Mayor Steve Schewel said it’s possible the city may add more money to the loan program but he also doesn’t want to “overpromise.”
“The city has allocated $1 million. Duke (University) has allocated $1 million. The county will help. We need more private funders to step up,” Schewel said. “I wish this was easier. We haven’t been urgent enough, but we will.”
The coalition also asked that the relief be provided as grants, not loans. Durham City Attorney Kimberly Rehberg said last week that the city cannot offer grants because the state prohibits cities from giving money to individuals without a public purpose defined by statute.
The proposed loans would be available to independently owned Durham companies in operation at least 18 months with fewer than 25 full-time employees and under $2 million in income. The program would prioritize disadvantaged business owners.
Wake, Orange County funds approved
Wake County has approved a $5 million small-business loan program called Wake Forward, which offers up to $50,000 in loans. Orange County opened applications April 10 for small-business grants and loans. The Raleigh City Council approved a $1 million small-business fund last month to provide grants as high as $10,000.
Duke University’s Duke-Durham fund is offering a total of $5 million in grants to local organizations, nonprofits, and small businesses. The second and third rounds of applications provide grants of up to $5,000 and close June 9.
Wendy Jacobs, the chair of the Durham County Board of Commissioners, said Durham’s small-business relief funds are lower than some other areas’ because the county received less money from the federal Coronavirus Aid, Relief and Economic Security, or CARES, Act.
PPP loans aren’t enough, some small-business owners say
A number of Durham small-business owners said they received loans through the federal Paycheck Protection Program. The program was established when the CARES Act was made law March 27.
Williams got his PPP loan this month but said it’s not enough to keep his Zimbabwean restaurant in business. He will have to shut down in July unless he gets money from Durham to cover rent, he said.
“If we’re going to take a more conservative approach to opening, we need some financial assistance,” Williams said. “Our sales are down 80 percent. We’re exhausting our savings.”
Small businesses that receive PPP loans must spend the money within eight weeks and use 75% of the funds for payroll. Williams said his restaurant’s greatest expense is rent, which the loan won’t fully cover.
Areli Barrera de Grodski, the co-owner of Durham’s Cocoa Cinnamon coffee shops, is asking the city and county to provide grants after she used most of her PPP loan.
“(The PPP) money is not a sustainable solution. We’re grateful for the bit of relief, but every day is still not guaranteed and we still have so many expenses as a business,” she said. “I understand it is a hard job to muster funds, but some businesses only have 10 days worth of cash left.”
This story was originally published May 29, 2020 at 1:17 PM.