For many cities, CARES Act funding was consumed quickly by public health, safety and technology needs brought on by the COVID-19 pandemic. However, thanks to extended relief from the federal government, some municipalities were able to share that assistance to meet broader community needs.
The city of Acworth pumped $588,000 into a bleeding local economy. The Acworth CARES Grant was awarded to 114 businesses and nonprofits, which agreed to use the funding by Dec. 31 for business needs such as equipment rentals, utility payments, marketing, rehiring staff and safety supplies.
To be eligible, small businesses – those with gross revenue under $5 million—were required to be at least one year old and current on all taxes and licensing. They also demonstrated a COVID-19 impact in the application. The funding was distributed based on a formula, with a maximum of $6,980, said Alex Almodovar, Acworth’s assistant to the city manager.
The reaction from the business community was surprise and gratitude when the mayor and board of aldermen handed out checks at a grant reception.
“A lot of them were in tears, because they were so happy,” Almodovar said. “Most of them weren’t expecting to get $5,000 or more.”
City officials received heartfelt thanks from recipients, such as this note from Academy Kids DayCare in Acworth: “We are so appreciative of this gift as we strive to support both our teachers and our daycare families during this time. We are certain that there were numerous businesses and nonprofits absolutely in need of the assistance, and we are honored to have been included as one of those entities.”
For the city, the trust gained through the distribution of funds was a tremendous benefit of the program. “We already had a great relationship with the business community, but this just enhanced it,” Almodovar said.
The city of Ringgold also generated goodwill in the business community by offering grants with CARES funding. The Downtown Development Authority awarded 17 businesses a $300 grant to give their downtown a boost.
“The businesses were very appreciative of the money, and I think it means a lot to know that the city is trying to support them,” Ringgold Main Street Manager Jamie Klementisz said.
After meeting public health, safety and city technology needs, the city of Woodstock reallocated CARES Act funding to address deficits in the community due to the economic impacts of COVID-19. After
seeing a rise in food sensitivity in Woodstock, Mayor Donnie Henriques and the city council awarded grants to six local food pantries. The city allocated $90,000 to schools serving Woodstock residents, to purchase Wi-Fi hotspots to assist in virtual learning.
“In response to an increasing need related to food insecurity in our city, the mayor and council allocated $40,000 to developing a grant program for local food pantries that serve residents of the city of Woodstock,” Assistant City Manager Coty Thigpen said. “These funds will go a long way to help these organizations replenish their shelves and get these families back on their feet. The city was also proud to partner with our local school board and provide them with a grant to purchase 270 MiFi units so that schools that educate Woodstock residents can be sure to have access to at-home Internet for digital learning so that the children in our city don’t fall behind.”
Woodstock also waived 2021 business license fees for 60 percent of all businesses, as well as discounted alcohol license renewal fees. Fee deferral or cancelation is one of the many ways municipalities across the country have supported small businesses during the pandemic, according to the National League of Cities. Here are some other examples nationwide:
• The city of Philadelphia, Pa., provided grants and zero-interest loans to small businesses.
• The city of Chattanooga, Tenn., hosted webinars for minority-owned businesses and Spanish-speaking business owners, to share relief information.
• The city of Providence, R.I., launched a small business survey to gauge the impact of COVID-19 on the local economy, justifying the need for additional federal response.
• The city of Birmingham, Ala., created a small business resource website, bhamstrong.com, to share information and develop a meal preparation net- work for restaurant owners.