Several area communities have launched new grant programs to help struggling small businesses hit hard by the COVID-19 pandemic.
Among the initiatives underway to keep enterprises afloat during the health crisis is the Northampton Emergency Business Grant program and the Holyoke COVID-19 Business Emergency Operations grant program. Additionally, Hilltown Community Development is administering a Small Business Administration relief fund, and Amherst anticipates launching its own program in the coming days.
The emergency fund in Northampton has $125,000 available from supplemental Community Development Block Grant money the city recently received from the U.S. Department of Housing and Urban Development as part of the federal coronavirus relief bill, known as the CARES Act.
The program, administered by Valley Community Development, began accepting applications Wednesday morning for a maximum of $10,000, with anticipation that 20 to 25 grants, averaging around $5,000, will be provided business owners on a first-come, first-serve basis.
Wayne Feiden, Northampton’s director of planning and sustainability, said the program will meet a tiny portion of the need for businesses with up to 10 employees, with that relief to be used for inventory, materials or supplies, machinery and equipment, or consulting services.
“We’re trying to focus on the gaps in the federal and state (aid),” Feiden said.
Greater Northampton Chamber of Commerce Executive Director Vincent Jackson said the program could be a lifesaver for the many businesses suffering economic hardships as a result of the pandemic.
“The grant program will be wonderful for businesses to apply for. It’s better than a loan program,” Jackson said. “Taking on more debt at this time is not an attractive proposal.”
The chamber has been informing business owners that they should apply as soon as possible. There are also advisories for how this financial backing can help businesses adapt to changed economy for a prolonged period.
But Jackson notes that the money will only go so far and doesn’t provide relief for businesses from rents and existing debt. That’s why the chamber has been advocating for more state and federal assistance.
While its unknown how many business owners will apply, Feiden said the qualifications make it likely that the program will be inundated. One of those rules states that an owner show low or moderate income for 2020.
“The reality is an awful lot of businesses will qualify,” Feiden said.
Feiden said that the hope is businesses can begin receiving the financial support within three weeks, observing that the money tied to the federal CARES Act is supposed to be available within 30 days. A supplemental round of CDBG funding for cities like Northampton, while not yet certain, could support additional businesses in the future.
Holyoke’s emergency grant program is a joint project with the Greater Holyoke Chamber of Commerce. The $90,000 in this program, which was also created using CDBG funds, aims to have businesses remain open, retain employees and adapt their business operations to online or remote during the health emergency, according to a press release from the city.
Like in Northampton, there are qualifications business owners must meet. Those include that a business is owned by someone from a low-or moderate-income household, or at least one full-time employee must be low- or moderate-income, or that the service is being provided to a residential neighborhood where more than half the people are low- or moderate-income.
City officials are expected to begin reviewing applications, which began to come in on Monday, on Friday. Grants will be awarded weekly until all money is dispersed.
There is no maximum amount, even though the money is viewed as extremely limited based on the number expected to apply.
In more rural area communities, the Hilltown Community Development is attempting to help small businesses persevere.
Executive Director Dave Christopolos said his agency will need more resources than just the federal Small Business Administration relief fund, though.
“Our goal is to work to help the few restaurants and commercial food stores we have remain in business,” Christopolos said.
Hilltown is also continuing to provide small business technical assistance with Mass Growth Capital Corp. grant funds, and is hoping to use some of the newly released CDBG money from the CARES Act for small business support.
While nonprofits are not eligible to seek aid from the programs in Northampton and Holyoke, the Community Foundation of Western Massachusetts this week received $500,000 to support organizations serving populations impacted by the pandemic, such as the elderly and families who are housing and food insecure.
That significant donation came from the Irene E. and George A. Davis Foundation and brings the COVID-19 Response Fund to over $3 million.
“These are extraordinary times requiring that business and philanthropy in western Massachusetts come together to address this unprecedented crisis and its impact on the people of our region,” Davis Foundation Director Steven A. Davis said in a statement.
Scott Merzbach can be reached at smerzbach@gazettenet.com.
