Page 64 - FDI Alliance International Magazine Summer 2020 Digital Interactive Issue

US CITIES BEST PRACTICES

ASSISTING SMALL BUSINESSES

DURING THE PANDEMIC

The COVID-19 pandemic has caused millions of The cities below have dispensed some of the best → HALTING OR DEFERRING FINANCIAL BURDENS:
small businesses throughout the nation to shutter. coronavirus relief grants in the United States.
Doors closed when local and state governments Some small businesses are currently generating
put social distancing orders in place. Other small → New York City, NY little to no revenue. The prospect of paying taxes,
businesses chose to temporarily shut down on Mayor Bill de Blasio created a relief plan to give utility bills, and licensing fees pose a threat to their
their own accord to help stop the spread of the up to $75,000 in interest-free loans to small ability to keep their doors open and pay their
deadly coronavirus. businesses in New York City with fewer than 100 workers. Some cities have legislation in place to
employees and have experienced at least a 25% help lessen financial burdens and responsibilities.
What happens next? Small businesses employ drop in sales. NYC also has a grant in place for
tens of millions of people. Preventing permanent micro-businesses (a business with fewer than five → Seattle, WA
closings of these small businesses requires a employees) where the city will offer concessions On March 13, Seattle’s Office of Finance and
federal response. So far, the federal government covering 40% of the payroll fees for two months. Administrative Services postponed business and
has allocated more than $350 billion in occupation tax filing and payment.
emergency lending power to the Small Business → Boston, MA
Administration (which sounds like a lot, but it’s The city of Boston established the Small Business → Phoenix, AZ
far less than what’s needed to meet the scope of Financial Relief Fund to help those most impacted Phoenix ordered utility companies to keep
the COVID-19 crisis). US cities and states have by the COVID-19 pandemic. The municipality businesses’ lights on and water running while the
stepped in to help fill the void and support small provided three types of grants ranging from pandemic persists. Other cities around the US,
businesses and workers. $2,500 relief grant to $10,000 relief grant. The including New Orleans and St. Louis, followed
grant money can be used to help pay off debts, suit as the public health crisis continued.
Many state and local governments have already payroll, and cover lost revenue and other working
jumped in to help, provide immediate assistance, capital expenses. → Atlanta, GA
and tie over small businesses until relevant federal Atlanta Mayor, Keisha Lance Bottoms, signed a
relief is available. → Lakewood, OH bill sponsored by Atlanta City Council Members
We are highlighting the US cities that have shown The City of Lakewood, Ohio, was quick to the that let the city temporarily suspend rent for
the best practices in assisting small businesses punch and launched a Small Business Rent Relief concessions and car rental companies for four
during the COVID-19 pandemic. Fund on March 23. Grants are up to $3,000 months. Instead of paying rent, companies used
and intended to reimburse rent payments. the money to provide financial relief to employees
→ GRANTS & LOANS: who experienced pay cuts and fewer hours.
→ Hillsboro, OR
Small businesses need cash, and they need it fast. Hillsboro set up two rounds of funding, totaling
Financial relief is critical to keep small businesses $1,000,000 in relief funds through its Small → CREATING RESOURCES AND INFORMATION:
afloat during the disastrous economic effects Business Emergency Relief Program. The Hillsboro
of the pandemic. The best programs will give program gave priority to small businesses that serve Of course, small businesses are in dire need
small business owners outright grants to help larger groups of people. Bars and restaurants of financial relief; however, there is a lot of
replace some of their lost profits. Grant money were among the highest recipients. Both rounds information available for small businesses online
can help cover costs like rent, salary, utilities, and of funding were depleted on the day applications that can also provide another kind of support.
other critical expenses. Naturally, the demand for opened. Cities across the nation are building simple, easy-
grants is incredibly high. to-use websites where small business owners

64. FDI ALLIANCE INTERNATIONAL