From Local Focus magazine
2nd Quarter 2020
Feature Article
Cities, Counties Support Small Business Owners through Emergency Grant, Loan Programs
By Mark Gharst and Melody Finnemore
After serving in the U.S. Army for 23 years as a helicopter pilot, Chris Reese retired as a colonel and invested his savings to open three restaurants over three years. Reese is the owner of Southpaw’s Pizza & Sports Bar and Major League Burgers in Albany, and in December opened a second sports bar in Eugene.
And then, just a few months later, COVID-19 hit. Reese, who prides his restaurants for serving as a platform to teach business and professional development skills to high school and college students, had to cut his staff from 125 employees to about 45. He was able to provide curbside pick-up and delivery service to some locations from the Albany restaurants, but the Eugene restaurant had to shut down until some changes could be made to protect employees and customers.
“It was hugely significant. We basically had to reformat our entire kitchen operation and create an entirely different flow to stay open,” he said, adding his employees needed specialized training in how to properly wear sanitary equipment and abide by revised procedures and equipment for walk-up and drive-up orders.
Reese, who often sponsors local youth sports teams, turned to Community Lending Works’ small business emergency loan fund for help. The funding he received was the safety net he needed to pay past-due bills and prepare for the coming months.
“Literally, I had tears in my eyes. I was talking to my lawyer about whether I should file for bankruptcy and it was pretty overwhelming. I didn’t want to lose my life savings,” he said. “I can’t tell you how appreciative and elated I was to get the news from Community Lending Works. This may have just facilitated keeping the doors open until Labor Day and beyond.”
Community Lending Works partnered with the city of Albany to establish the emergency loan fund, with Albany committing $200,000 to seed it. Eligible businesses include those with 40 or fewer employees and loans are up to $15,000 at 2% interest with no payments for the first six months.
Community Lending Works also partnered with Lane County and the cities of Springfield and Eugene to provide loans of up to $30,000 at 2% interest with no payments for the first six months for businesses located in Lane County with 20 or fewer full-time employees.
Hillsboro Mayor Steve Callaway said his city used its general fund and reserves to issue more than 400 grants at an average of $3,000 each to small businesses, with about 75% of them owned by minorities and women and 15 businesses owned by veterans. He noted that the grants were intended to “help keep the lights on” until federal relief checks arrived.
“That was a commitment we made because our businesses, especially our small businesses, are always there to serve our community and this was a way we could serve our small businesses in return,” he said. “They give and give in so many ways and this was just a wonderful opportunity, albeit none that any of us would have wished for, but an opportunity to show that loyalty goes in both directions.”
Cities and counties across the state are managing multiple struggles amid the pandemic, including lost revenue for local governments. However, as small businesses struggle to survive with the sudden loss of cashflow, cities are also providing several emergency loan and grant programs. The following is not a comprehensive list, but a snapshot of how cities are stepping up to support their business owners. Other programs are under consideration, and the LOC is working to secure state resources for cities to use towards these types of programs.
Beaverton dedicated $250,000 in grants through its Emergency Business Assistance program, through which businesses that were ordered to close because of the pandemic can apply for $2,500 per month in commercial rent
or mortgage reimbursement while the city is in a declared state of emergency.
Forest Grove awarded grants to local businesses with 25 employees or less to pay their rent or mortgage for the month of April. Individual grants were up to a maximum of $2,500 per business, and a total of $100,000 was appropriated for the program.
Grants Pass adopted the COVID-19 Emergency Grants
Assistance and Recovery Program to provide immediate funds to small local business owners to cover ongoing expenses during the state’s “Stay at Home, Save Lives” mandate.
Gresham developed its Small Business Emergency Grant Program, which offered one-time grants in the amount of $1,000 per employee up to a maximum of $10,000 per business. The city originally dedicated $400,000 to the program, and followed up with an additional $400,000.
Hillsboro dedicated $1 million in funding to its Small Business Emergency Relief Program. Businesses in Hillsboro can apply to receive a $3,000 grant to offset losses associated with the pandemic. Priority is given to restaurants, bars, education facilities and businesses that serve large groups of people and have 10 or fewer employees.
Lake Oswego’s COVID-19 Business Assistance Grant Program has a $250,000 budget and awards grants of up to $2,500 per business based on the number of employees.
La Grande created an emergency loan program that made city general fund dollars available to fund a limited number of loans of up to $10,000. Priority is given to businesses that provide essential services such as food, groceries and retail.
Milwaukie established a business relief fund to support small businesses with one-time grants of up to $5,000 for working capital expenses such as payroll, lease or commercial mortgage payments, utilities, insurance and inventory, among others. The total funding available is $130,000, which is being allocated from the city’s Construction Excise Tax program.
Pendleton approved $100,000 in funding for its emergency grant program to small businesses in the city’s urban renewal district. Eligible small businesses may qualify for a one-time $2,000 grant. Awards will be granted through a lottery-style drawing of all qualified applicants.
Portland had $190,000 for grants, including $50,000 in private funds, in its Jade District-Old Town COVID-19 Small Business Response Fund. Priority was given to Asian- and Pacific Islander-owned businesses. The city also dedicated $1 million to the Portland Small Business Relief Fund to provide grants and zero-interest loans.
Seaside approved a nearly $1 million, three-part financial relief package for lodging operators, businesses and residents. The city’s share of lodging taxes for the first quarter of 2020 are waived, impacted businesses will receive grants of up to $4,000, and property owners will see a one-time $50 credit on water bills.
Sherwood launched a Small Business Emergency Relief Grant Program with an original allotment of $100,000 that was doubled to $200,000. Grants of $2,125 were awarded to 94 businesses.
Tigard has $300,000 in small business assistance through its Tigard CARES Program. The business assistance program provided seed funding to Community Development Financial Institutions (CDFI) to deliver a combination of microloans, loans, grants and business-advising services. The program’s goal is to leverage the city’s $300,000 investment into $700,000 in assistance to Tigard businesses. The city’s CDFI partners, Micro Enterprise Services of Oregon (MESO) and Craft3, will primarily assist traditionally underserved and underbanked entrepreneurs, including minority and women business owners.
Tualatin established an Economic Stabilization Fund offering grants up to $10,000 for small businesses.
Wilsonville created a $400,000 grant program using City Transient Lodging Tax and Urban Renewal Agency funds. The Wilsonville Small Business COVID-19 Relief Grants Program was set to award more than 150 grants ranging from $1,000 to $4,000 to eligible businesses with no more than 20 full-time employees.
Mr. Gharst is LOC’s tax and finance lobbyist. Contact him at mgharst@orcities.org.
Ms. Finnemore is a Portland-area freelance writer. Contact her at precisionpdx@comcast.net.
Related Articles
- From the LOC Executive Director: Rising to Meet the Challenge (Local Focus - 2nd Quarter 2020)
- Stories of Hope & Help: Communities Across the State Step Up to Provide Support During COVID-19 Pandemic (Local Focus - 2nd Quarter 2020)