Good news: federal funding from the CARES (Coronavirus Aid, Relief, and Economic Security) Act is coming to Austin in the form of grants for small business! After some discussion a revised spending framework was approved by City Council in early June. AIBA advocated for keeping the original amount of $23M on the grounds that small business in Austin is a huge economic generator (employing more than 300,000 people at more than 40,000 small businesses) and can work to get/keep our local economy healthy in these trying times. We also put out a call for stories from locals and want to thank council members and business owners who advocated for keeping original amount. Actions taken at the June 4th meeting can be found here.
$105.5 million will be devoted to “Emergency Response and Management,” which includes $68 million for department operating expenses, while $62.9 million will go to “Medical and Public Health Needs,” which includes protection of vulnerable populations, testing, planning and research, shelters, quarantine facilities, and more. $103.2 million will go to “Economic Support,” which includes direct financial support and food and rent assistance to individuals, as well as support for small businesses, non-profits, the creative sector, childcare providers, worker and customer safety, workforce development, and technical assistance. Of this $103.2 million, funding for “Financial and Other Direct Support” was increased by $12 million from the original proposal for a new total of $27.5 million (which does not include food, rent, or utility bill assistance.) Funding for the creative sector was decreased from $8.5 to $5 million, and funding for non-profits was decreased from $7 million to $6.35 million.
We are disappointed to report that the originally proposed $25.5 million for small business funding was reduced by $9 million to $16.5 million. As we reported in earlier newsletters, this funding will provide small business grants of up to $40,000 each. In addition, there will be $1 million available for commercial rent assistance. As soon as details are available about eligibility requirements and application details, we will post them. Please consider joining us on Tuesday mornings at 9:30 for quick updates. You can RSVP here to get meeting details. You can begin to prepare your application documentation now by taking a few deep breaths and gathering your financials and incorporation paperwork. Be ready when applications open!