Protecting small businesses from the impacts of Covid-19 remains a priority for the City of Charlotte as it rolls out a multi-million dollar grant program.
The Access to Capital Small Business Recovery grant program is a partnership between the city and Foundation For The Carolinas that will distribute $30 million in federal CARES Act funding to micro-businesses and small businesses in Charlotte.
Charlotte City Councilman James Mitchell said more than 10,000 micro and small businesses operate within city limits, and it was crucial for council to aid those operations in any way possible.
"We heard loud and clear the small businesses crying for help, and [the grant money] is a way to say, 'You are a priority, just like public safety and public housing.'"
To be eligible for a grant, a business must meet the following guidelines: Be headquartered within Charlotte city limits; have no more than 25 employees; have been established before Jan. 1, 2020; must have been impacted by Covid-19; have gross sales for 2019 off at least $30,000 and less than $2 million; not be engaged in ongoing bankruptcy proceedings.
The money will be awarded in $10,000 and $25,000 increments, depending on the number of employees.
Applications are due no later than July 31, and businesses that have not already received any type of federal or state Covid-19 relief funding will have priority. Mitchell encouraged all small businesses to apply, however, as there may be funds left over for those that have already received other types of relief.
"It’s a grant, not a loan, so they can take these funds and use it to make payroll, pay rent, buy PPE equipment. There are no stipulations as to what it could be used for," Mitchell said. "We really wanted to leave it up to the small business owner."
He said the only stipulation is that all funds must be used by Dec. 31.
Holly Eskridge, the city's assistant economic development director, said so far, nearly 2,200 applications have been processed. The distributions, she said, are representative of Charlotte's demographics with more than half of the recipients being Black-owned businesses.
"I feel good that we were able to accomplish that with this first phase," she said
Mitchell said being able to distribute the funds quickly was important because he understands how severely the pandemic has impacted many businesses. The first round of recipients was chosen June 30 and the second on July 9. The third and fourth rounds will be chosen on July 22 and Aug. 2.
"I’m very proud that we’ve done this in less than 90 days," he said. "Small businesses generate more jobs. If you look at our growth, about 100 new people relocate here per day, and a lot of those are small business people saying, 'Charlotte is home to me.'"
"I can think of no better way to support them than to provide these grants," he added.
