A new local relief fund is launching in Dallas, this one aimed specifically at helping minority- and women-owned small businesses and entrepreneurs weather the economic crisis caused by Covid-19.
With the help of the Communities Foundation of Texas and LiftFund, the Dallas Entrepreneur Center (DEC) Network announced the new Revive Dallas Small Business Relief Fund to provide loans to local entrepreneurs and small businesses. It has already secured more than $1 million for the fund, with a goal of reaching $5 million.
“We started seeing small businesses and entrepreneurs affected by COVID-19 that haven’t been able to get the resources they need to survive, such as funding, mentorship and access to a breadth of organizations across the region that can help,” said Trey Bowles, co-founder and executive chairman of the DEC Network, in a prepared statement. “We decided to focus the efforts… to provide these necessary resources in combination with funding to help businesses stay open or re-open as this crisis passes, with the business community taking care of its own.”
So far, that funding has come from Comerica Bank, Texas Capital Bank, John Olajide, Andres Ruzo and a handful of other private foundations.
The goal of the relief fund is to help out those businesses who were unable to get loans through the U.S. Small Business Administration’s Disaster Relief Fund or Paycheck Protection Program. Although, businesses that have received some funding through those programs are still eligible to apply.
NTX Inno reached out to the DEC Network for more information on how this will effect the local startup community. The DEC Network couldn't be reached for additional comment before publication.
"We celebrate our small businesses in good times, and we must come together to lift them up through unprecedented challenges."
The DEC Network will be looking to give out loans worth about $25,000, with LiftFund and CFT acting as fiscal sponsors. With that amount, the organization is hoping to help out at least 200 local businesses. Other organizations supporting the fund, include the Dallas Regional Chamber, the Dallas Citizens Council, the North Dallas Chamber of Commerce, the Dallas Black Chamber of Commerce and the Greater Dallas Hispanic Chamber of Commerce.
“Small businesses are the heart of the Dallas economy,” said Dallas Mayor Eric Johnson in a prepared statement. “This loan program will be a boon to our city and serves as an outstanding example of how our community comes together in times of crisis to help those in need.”
Loan applications will be accepted starting Wednesday and be open through June 7. Recipients will be chosen in a lottery-style process. The DEC said that upon approval, funds should be sent to businesses within a week and they will be able to use it at their discretion provided they inform LiftFund about usage.
To qualify, businesses need to have been operating since at least August 2019 in the City of Dallas, in addition to having no more than $1.5 million in revenue and no more than 15 employees. Businesses also need to be able to show at least 15% of their revenue losses are related to the Covid-19 pandemic.
Among other ways to qualify for loan forgiveness, businesses can join the DEC Network’s Fast Start Mentoring Program, retain employees during the pandemic and show 2020 and 2021 budget and profit loss statements.
“We celebrate our small businesses in good times, and we must come together to lift them up through unprecedented challenges,” Olajide said in a prepared statement.
