Boston Mayor Michelle Wu’s administration made its case today before the City Council to allocate $5 million in federal pandemic relief money for small businesses. The money would go to an expanded small business relief fund and the effort could be approved as soon as tomorrow.
The city never stopped accepting businesses' applications for grants through the fund, but it hasn’t been able to award more money since distributing the last round of grants. Once its coffers are refilled, the city estimates being able to support an additional 300 small businesses — likely including many that are already in the pipeline.
Natalia Urtubey, Boston's director of small business, said over 2,400 applicants requested a collective $40 million since the relief fund launched in April 2020. The city has issued a total $8 million in grants to 628 businesses since then, with the average grant amounting to $12,700.
The city is making some changes for this particular round of relief funds. Businesses can apply for two different grants.
“The first being the relief grant, which can help businesses support any outstanding debts that they might have due to the pandemic,” said Urtubey. “The second element of the grant is up to $10,000 to support business growth through tools, technology, materials, personnel and other costs associated with investing in their business.”
People who have applied for relief in the past do not need to reapply to be reconsidered. In fact, Urtubey asked people not to reapply because of limited staffing. If the circumstances of someone’s previously submitted application has changed, they should reach out to her office.
Although many businesses have received some funding to stave off closure, Segun Odowu, the city’s chief of economic opportunity and inclusion, said it hasn’t been enough.
“We’re here with a request to provide more resources and deeper assistance to those in need until the pandemic has subsided,” he told the council’s Committee on Boston's COVID-19 Recovery.
Committee Chair Kenzie Bok said she plans to recommend the passage of the effort at the council's weekly meeting tomorrow.
“One caveat I will mention is that we have seen a lot of duplicate applications in our communities, particularly communities of color. I think that that just kind of reinforces that they need that funding and support,” Urtubey said. She said businesses that received the initial grants used most of the money for rent, and that’s likely to continue. But some have also inquired about funds for growth.
The city is prioritizing businesses directly impacted by coronavirus pandemic closures or policies, including restaurants, bed and breakfasts, beauty salons, childcare providers and retailers. Several councilors seemed to agree on is ensuring the money is distributed equitably, and tracked.
At-Large Councilor Julia Mejia asked how the city will measure if funding is going to small businesses and communities hit hardest by the pandemic, and what the rollout will look like for community engagement and outreach in those areas.
“I’m thinking Dorchester, Mattapan, Roxbury and East Boston," she said.
Others, like At-Large Councilor Ruthzee Louijeune, were concerned about barriers to the application process that may prevent some minority or immigrant-owned small businesses, like technical capacity and language access, from requesting grants or being picked to receive them.
Urtubey said one way to solve that is not to hand out grants on a first-come, first-served basis. “We want to have an equitable lens on how these funds are distributed,” she said. Her department is working to be “proportional to the city’s demographics, of the city’s business community.”
Businesses must have a valid vendor ID from the city, less than 25 employees, a Boston business address, and the business must be in good standing with the city. Up to $10,000 in relief funds can be requested to support debts related to rent, mortgage, payroll and inventory. For the growth grant, there’s also up to $10,000 for technology, personnel and materials related to investing in business growth.
The last of this round of funds will likely be issued in March, since so many businesses' past applications are pending,
