D.C. is launching a new $3 million Small Business Resiliency Fund that will offer small District businesses $10,000 in emergency operational funds.
This money will assist in business model pivoting, marketing expenses, purchasing of personal protective equipment and disinfection products, and continued development of e-commerce and online shopping platforms.
In order to be eligible, businesses must have a facility located in D.C., employ 50 or fewer people, generate less than $3 million in gross receipts, and be able to demonstrate that they have lost 25% or more of revenue due to the pandemic. They also can’t have any debt owed to the city in excess of $100.
“Pivoting a business costs money,” Deputy Mayor for Planning and Economic Development John Falcicchio said in the release. “These challenging times are forcing businesses to adapt to a new norm all while trying to keep their doors open. This funding will help alleviate some of the financial burden COVID-19 has imposed on our small and local businesses.”
The District is partnering with City First Enterprises, a community development financial institution that is soon-to-be-largest Black-led depository institution in the country, to help oversee and manage the fund. It will be housed in D.C.’s Office of the Deputy Mayor for Planning and Economic Development.
“Our businesses have been resilient in the face of immense challenges, and we know they still need our support,” Mayor Muriel Bowser said in the release. “These grants will help small businesses adapt and implement creative measures so they can stay open and operating during the public health emergency.”
Applications will open Tuesday at 4 p.m. with a deadline of October 15 at 11:59 p.m., making for a short application window.
Officials say this is a extension of the microgrants provided by the city earlier this year. In March, the District announced the Small Business Recovery Microgrant Program, which made $25 million available to small businesses to help get them through the pandemic. The money was intended to cover wages, employees’ health insurance, rent, utilities, and other fixed operating costs. The city received 7,400 applications and awarded at least some amount of money to nearly all of them.
However, some businesses expressed frustration that it took a long time for them to get the money, which led to worry about the threat of permanent closures.
In June, the city launched a second microgrant program specifically aimed at businesses east of the Anacostia River. Businesses were able to receive up to $10,000 and the city said it received about 270 applicants. Currently, there’s also the $6,000 winterizing grants that the city is offering restaurants to upgrade their outdoor space for the upcoming cold winter months.
This grant program is much smaller than the first program in March and more on par with the microgrants designed for wards 7 and 8. With $3 million to work with and $10,000 available per recipient, about 300 small D.C. businesses will be able to receive grants.
This story was updated with more recent statistics about the Small Business Recovery Microgrant Program.
Matt Blitz