Grant Funding for Austin Businesses is Here

Good news for small businesses suffering financial hardship due to COVID-19! On July 7th, applications opened for the City of Austin’s Small Business Relief Grant program, which provides assistance of up to $40,000 per qualifying business to be used for rent, payroll, and other approved expenses incurred between March 1 and July 7, 2020. $16.5 million in federal funding from the CARES Act has been set aside for this program.

To be eligible, businesses must be able to demonstrate an economic loss associated with the COVID-19 pandemic, have been in continuous operation for at least two years, have under $5 million in annual revenue, be located within a City Council District, provide one year of federal tax returns, and have fewer than 25 full-time equivalent employees (full time = 30+ hours/week, and two half-time employees would count as one full-time equivalent employee.) The grant is open to businesses operating under various business structures such as partnerships, sole proprietorships, LLCs, cooperatives, etc. Businesses who aren’t eligible include those engaged in multi-level marketing, lobbying, those who receive more than one third of their annual revenue from gambling, religious institutions, businesses debarred from contracting with the federal government, government entities, individuals, and nonprofits (there is a separate City grant for nonprofits, up to $20k.) Full-time City of Austin employees are not eligible for the Small Business Relief Grant.

Eligible expenses include rent, payroll, facility and business modifications for safety compliance, PPE, sanitation and cleaning, inventory, business insurance, technology, business adaptation and worker training, operational costs, and more. The grant does not cover lost sales or sponsorships, merchandise sold for marketing purposes, or costs that have been paid for by other COVID-19 grants or loans.

Applications will close at 5pm on July 24, and no priority is given to early applicants. Half of the applications will be evaluated according to a scoring matrix, and the other half will be distributed according to a lottery. For more information about the scoring matrix and detailed eligibility criteria, visit https://www.austintexas.gov/department/austin-small-business-relief-grant. For complete resources on Covid-19 recovery, visit www.atxrecovers.com.

AIBA and the Local Economies Council are working with the City and the Better Business Bureau, the administers of the application and selection process, to get information and assistance to local businesses in Austin. Please reach out to us at hello@ibuyaustin.com or 512-441-2123 with questions or if you need technical assistance in completing the application.

New State and Local Orders Requiring Face Coverings and Limiting Outdoor Gatherings

From the City of Austin Communications Department (via email): “Governor Greg Abbott issued Executive Order No. GA-29 on July 2, 2020 requiring all Texans to wear a face covering over the nose and mouth in public spaces in counties with 20 or more positive COVID-19 cases, with few exceptions. The Governor also amended Executive Order No. GA-28 giving mayors and county judges the ability to impose restrictions on some outdoor gatherings over 10 people. Additionally, Governor Abbott’s amendment prohibits groups larger than 10, with few exceptions, and requires maintaining six feet of social distancing from others.
Consistent with the Governor’s Order, Mayor Steve Adler issued a new City of Austin Order on July 2, 2020 requiring everyone in city limits to wear some form of face covering that fits snugly over their nose and mouth. The Mayor’s Order also prohibits indoor or outdoor gatherings of more than 10 people, unless the gathering is expressly permitted by the Governor’s Order or a local Order.
Visit the City of Austin COVID-19 Information for Businesses and Industries webpage for helpful and up-to-date guidance for the most recent health and safety orders”

Statewide Order Closes Bars and Reduces Restaurant Capacity

The Texas State Governor today issued an order that call for all bars to close after rampant spread of covid-19 over the past few weeks. The order also reduces indoor restaurant capacity to 50% but allows them to remain open for dine in service. Rafting and tubing businesses are order closed and gatherings of 100 or more people must be approved by local governments. According to a press release from the governor’s office, these orders are “part of the state’s efforts to contain the spread of COVID-19. This decision comes as the number of people testing positive for COVID-19 and the number of hospitalizations have increased and the positivity rate in Texas increased above 10%, which the Governor previously stated would lead to further preventative action. The targeted, measured directives in the executive order are based on links between certain types of businesses and services and the recent rise in positive cases throughout the state.”

Governor Abbott said, “at this time, it is clear that the rise in cases is largely driven by certain types of activities, including Texans congregating in bars. The actions in this executive order are essential to our mission to swiftly contain this virus and enhance public health. We want this to be as limited in duration as possible. However, we can only slow the spread if everyone in Texas does their part. Every Texan has a responsibility to themselves and their loved ones to wear a mask, wash their hands, stay six feet apart from others in public, and stay home if they can. I know that our collective action can lead to a reduction in the spread of COVID-19 because we have done it before, and we will do it again.”

The Governor’s office did not discuss additional financial assistance for those businesses required to close.

New Mask Order for All Austin Businesses

Per an order from Mayor Adler, all Austin businesses will be required to ensure that all workers and customers wear face masks or other face coverings. This order is supplemental to Adler’s earlier orderswhich the City extended to Aug. 15. The current order was set to expire on June 15.. This mask requirement goes into effect on June 18 lasts until August 15.

The order says businesses must develop and display a health and safety policy that requires a face covering while on the premises. Businesses have until June 23 to create and display this health and safety policy. Adler noted in his remarks that many Austin businesses have already implemented mask requirements for their employees and customers. This is a transition to a more “direct order on masks” does put the onus on businesses to enforce mask wearing on their premises, which will likely prove to be burdensome for some. For businesses who were already requiring face coverings under their own volition, this change provides a city-wide order to point to as back up if they are ever faced with resistance from the public.

We at AIBA are here to help locally owned business navigate any issues that arise and get them the support they need to make the new order work with their reopening strategies. Please reach out if you encounter any issues.

There are some exceptions to the order. A mask is not required when:

  • You are alone in a single, separate space
  • You are among people of the same household
  • You are eating or drinking
  • You are outdoors engaging in an allowed activity with social distancing
  • Wearing a mask poses a safety or health risk

 

Travis County Small Business Grant Program Open

Travis County’s grant program for small business (using CARES Act funding) is open for pre-application eligibility screening. BCL of Texas is partnering with TravisCounty to launch the Travis County (TCTX) Thrive Small Business Program to offer grants of up to $40,000 to qualifying businesses in Travis County but outside of Austin city limits that have been financially impacted by the coronavirus pandemic. Businesses will need to complete a pre-application to determine if they’re eligible for the program. If eligible, businesses will be invited to submit a full application. If awarded, the businesses who participate in TCTX Thrive Small Business Program will work with BCL’s small business coaches to create a Business Continuity Plan and will receive no-cost business coaching throughout the program period.

The Travis County Commissioners Court approved funding for this new small business grant program due to the unprecedented impact of COVID-19. Businesses must submit the Pre-Application Eligibility Determination before July 3rd in order to participate in this program. Eligible Businesses must meet the following criteria:

  • Businesses located and headquartered within Travis County and further, located in unincorporated Travis County, in any city’s extraterritorial jurisdiction (ETJ), or in another city or village within the county outside the City of Austin incorporated limits.
  • The business address identified on legal documents is used to determine the location of the business.
  • Have no outstanding tax liens or legal judgments. If on a payment plan, must be current. Exceptions may be made for businesses that have outstanding recent quarter 941s or sales tax reports to the Texas Comptroller due to financial difficulties related to COVID-19.
  • Have been in business since March 1, 2019
  • Fewer than 25 Full Time Equivalent Employees on March 1, 2020
  • Maximum net revenue of $500,000 annually
  • Businesses that use a Social Security Number, Employer Identification Number, or Individual Taxpayer Identification Number

They have a dedicated team available to respond to questions. For more information, you can call at 512-994-2280 or email us at info@traviscountythrive.com.

 

Shop The Block Pilot Permitting Program

The City of Austin is committed to employing innovative measures that increase resiliency for small business owners and their employees, especially during the COVID-19 pandemic and has a new pilot program to expand the space businesses have to use to encourage social distancing. The Shop the Block program was proposed by council member Pool and allows for retail, restaurant and cocktail to use outside space with a very streamlined permit process and more latitude than before. Details and application can be found here. This is a great way for retailers and restaurants to expand their social distancing capacity and give customers access to their wares in open air spaces (for both comfort and safety).

Shop the Block is a pilot program operational during COVID-19 to help businesses during the pandemic. It allows businesses to apply for a 30-day permit, renewable for up to 6 months during the pilot period. Businesses can expand their operations outdoors onto their private parking lots and public sidewalk – while maintaining ADA compliance – as well as onto the public parking spaces in front of their establishments, for customer waiting or service. Open air dining and shopping will serve to attract more business activity, help boost the local economy, and create a pedestrian-friendly environment.

Shop the Block permitting begins June 15, 2020 through December 15, 2020. Businesses must still operate safely with adequate social distancing measures to protect customers. This pilot program allows an adjacent retail store, restaurants and bars to sell or provide goods, food, and beverages on City streets, sidewalks, or rights-of-way, including city on-street parking spaces. Eligible applicants include: Retail stores, Restaurants, and Cocktail lounges, taverns & bars. A group of retail stores, restaurants, or cocktail lounges, taverns & bars that share a private parking lot or are located on the same two blocks of a street, sidewalk, or city right-of-way. The number of attendees may not exceed the occupancy limit for the retail store, restaurant, cocktail lounge or group of retail stores or restaurants.

More details and application are available here.

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