Raleigh approves $1 million to help small businesses hurt by coronavirus
Small business owners can apply for up to $10,000 in economic relief, thanks to a $1 million donation from the city of Raleigh.
During a specially called meeting Tuesday, the Raleigh City Council voted to give $1 million to two organizations — the Carolina Small Business Development Fund and Wake Technical Community College — to help small businesses throughout the city.
Mayor Mary-Ann Baldwin and the Raleigh Chamber of Commerce will hold a conference call Thursday to challenge corporate leaders to match the city’s $1 million grant.
“I am really, really proud,” Baldwin said. “I will be even prouder when our corporate community matches what we have done.”
The Carolina Small Business Development Fund will receive $850,000. It targets businesses with fewer than 49 employees and is expected to help 100 businesses, said Kevin Dick, its president and CEO. The application will be online at carolinasmallbusiness.org within two weeks.
He stressed the grants aren’t for long-term sustainability.
“It certainly provides an opportunity for some businesses to have a bridge and hopefully enable them to survive,” he said. “Right now we understand businesses are drowning, and we are pleased to partner with the city of Raleigh to provide relief.”
Raleigh has more than 34,000 small businesses, including 1,800 restaurants and 700 businesses like hair salons, barber shops and massage therapy providers.
“While any emergency support program by the city will be beneficial and provide additional support, it should be noted that any financial support will serve only a small percentage of small businesses in Raleigh,” according to a memo from the city.
The Carolina Small Business Development Fund also manages Mecklenburg County’s fund, which offers $5,000 to $35,000 to small businesses hurt by the pandemic. The money for that fund ran out in less than five days.
Statewide, the organization found 111,477 businesses employing one to 19 people and 20,915 businesses employing 20 to 99 people are “at high risk for closure and need assistance.”
Wake Tech will receive $65,000 from the city for businesses with fewer than 14 employees. Applicants going through the college would need to have previously worked with its small business center or Launch Raleigh, which focuses on woman- and minority-owned businesses.
Many of the small businesses in the area got their start or were helped by the community college, said Wake Tech President Scott Ralls in an interview.
“We hate to see them put all their dreams and efforts into it, and run into such a challenge,” he said.
The Wake Tech fund for small business was originally seeded with a private gift of $50,000 from Wells Fargo. In just a few days there was a need of more than $300,000 from small businesses, Ralls said.
The remaining $85,000 from the city will go toward program management costs.
To qualify, business must have a storefront, be located in Raleigh, have lost 25% of their revenue and have revenue of no more than $2.5 million. The grants will be capped to one grant per business owner, and business owners may not use the grant money to pay themselves.
The grants could be released to businesses within two weeks, said Veronica Creech, the city’s economic development manager. Help is most needed by “mom-and-pop, Main Street”-type businesses that make up “the soul of the community,” she said.
In Apex, town staff have recommended $1 million be put in a Small Business Emergency Loan Program approved by the Town Council, according to Mayor Jacques Gilbert. A public hearing is set for April 27.
This story was originally published April 21, 2020 at 2:17 PM.
