AMHERST — Small business owners in Amherst who have been forced to close or significantly reduce their operations due to the COVID-19 pandemic could be in line to get money from a grant program through a new nonprofit foundation.
The Amherst Business Improvement District and the Amherst Area Chamber of Commerce this week jointly announced the launch of the Relief and Resiliency Microgrant Program, which will be supported by the Downtown Amherst Foundation.
Amherst BID Executive Director Gabrielle Gould said Friday that the nonprofit foundation, originally created to support and develop arts and culture in the community and downtown Amherst cultural projects, such as a permanent outdoor performance space on the Town Common, is being transitioned for the new purpose.
“We’ve pivoted and shifted it to what it is today, to use these funds for the resiliency of businesses Amherst-wide,” Gould said.
Gould said the intent is to begin providing microgrants, many for $10,000 or $15,000, to brick-and-mortar businesses that otherwise might not survive the economic downturn as the public health crisis continues.
The money can serve to meet a business owner’s short-term financial needs, which can include employee wages and benefits, such as health insurance, accounts payable, fixed costs, inventory, rent and utilities.
Providing Amherst businesses with another avenue for being able to survive a lean period until the economy can safely be reopened is critical, Chamber Executive Director Claudia Pazmany said.
“There was an outcry of support for our small businesses as the COVID-19 restrictions and shutdowns evolved, so we know the support is out there and we are thrilled to create this opportunity for those who care about our town of Amherst to invest in those businesses, and provide relief and resiliency,” Pazmany said.
A survey of business owners at the end of March showed that most would be unable to survive a shutdown if it extended until the end of May. Amherst was affected even before the state of emergency was declared statewide, which forced non-essential businesses to close and restaurants to ban dine-in service, when the University of Massachusetts, Amherst College and Hampshire College all sent students home for the semester in mid-March.
The microgrant program also addresses the challenges and shortfalls of the federal stimulus package. Gould said most business owners she has spoken to have been unable to get into, or opted against pursuing, the Economic Injury Disaster Loan program, which was offering $10,000 loans, or the Payroll Protection Program, which would support paying employees for eight weeks.
Gould said the initial goal is to have $250,000 in the foundation when applications begin to be accepted starting May 1, with additional rounds of funding at later dates as the foundation continues to be built.
The Amherst BID and Amherst Area Chamber are seeking financial support from other entities and foundations, local businesses that still have capacity to donate and understand that the greater good means having as many small businesses intact as possible, and local residents. Gould said many residents have been looking for a way to support businesses and their employees.
The initial push will be fundraising through Patronicity, an organization that partners with state agencies, foundations, private corporations and granting organizations to offer pools of funding.
Individual tax-free donations can be sent to the Downtown Amherst Foundation 35 South Pleasant St., Amherst 01002, or be made online at downtownamherstfoundation.org.
Serving on a committee to review applications are Irv Rhodes, an organizational development consultant; Ellen Brout Lindsey, a nonprofit consultant; Tony Maroulis, executive director of External Relations & University Events at UMass; Ralph Tate, an investment management specialist and treasurer of the Kestrel Land Trust; and Glenn Barrett, CEO of Ortholite.
Meanwhile, the state attorney general’s office this week announced the $500,000 Small Business Relief Partnership Grant Program and the COVID Relief Coalition, which will provide funds and offer pro bono legal support to those affected by closures and losses as a result of the pandemic.
“We hope that these resources will provide some much-needed relief and support to help keep their workforce employed,” Attorney General Maura Healey said in a statement. “We will get through this crisis together.”
The grants will go to municipalities and regional planning agencies and can address fixed debt, payroll, accounts payable, lost sales, lost opportunities and other working capital expenses.
The money comes from settlement funds received by the attorney general’s office. Individual requests may not exceed $50,000. Those interested in learning more should go to mass.gov/service-details/small-business-relief-partnership-grant-program.
The coalition of law firms, nonprofits and government agencies, led by Ropes & Gray, Lawyers for Civil Rights, and Lawyers Clearinghouse, will provide vulnerable businesses and mission-driven organizations with pro bono legal support.
Scott Merzbach can be reached at smerzbach@gazettenet.com.
