City Of Seattle To Open Applications For $4 Million In Small Business Stabilization Fund Grants

SBA Administrator Isabella Guzman and Seattle Mayor Jenny A. Durkan

Along with SBA Administrator Isabella Guzman, Mayor Jenny A. Durkan announced that the city will now accept applications for the Small Business Stabilization Fund (SBSF) of the Seattle Office of Economic Development (OED). OED awards an additional $ 4 million in grants to stabilize micro and small businesses negatively impacted by COVID-19 as the city moves from emergency relief to economic recovery. This new round of the SBSF will provide grants of $ 5,000, $ 10,000, and $ 20,000, respectively used for business expenses such as rent, wages and equipment.

“For the past 20 months, the COVID-19 pandemic and the ensuing economic crisis have had an undeniable impact on our small businesses in every neighborhood in Seattle. Since the early days of the pandemic, the City of Seattle and the Office for Economic Development have worked hard to support our city’s vibrant small businesses and provide financial aid to those who need them most, ”said Mayor Jenny Durkan. “Because of the disproportionate impact of the COVID-19 crisis on our black, indigenous and colored communities, we have designed our programs to support businesses owned and operated by women and color owners. As we look to recovery and better rebuilding, programs like our Small Business Stabilization Fund will be an integral part of the equitable reopening and recovery of Seattle. ”

To date, OED has provided over $ 10 million in direct funding to nearly 1,500 small businesses hit by the COVID-19 economic downturn across Seattle.

The latest round of the Small Business Stabilization Fund is funded by the Coronavirus Local Fiscal Recovery Fund (CLFR), established under the American Rescue Plan Act (ARPA). OED will administer these grants as part of their citywide investment in economic recovery. In previous rounds of the SBSF, all selected companies and nonprofits received a $ 10,000 grant. In this new round, eligible businesses and nonprofits can apply for grants of $ 5,000, $ 10,000, and $ 20,000, respectively, based on the proven negative financial impact of COVID-19. Because OED has not opened the SBSF application pool for nearly a year, and due to the ongoing economic impact of the pandemic, OED will accept applications from small businesses and nonprofits that have applied for and / or received SBSF grants in previous rounds.

“Over the past year, our office has received feedback from stakeholders asking us to offer grants of varying amounts to better serve the unique needs of our small businesses and nonprofits,” said OED Interim Director Pamela Banks. “For the past 19 months, providing critical resources and support to our small business community has required creativity, flexibility, and a willingness to change our approach based on community feedback. All companies have seen the effects of COVID, but not all experiences are the same. So we’re excited to be able to offer grants of varying amounts in this round in the hope that they will better serve the different needs of our small businesses and nonprofits that are doing their best to survive. ”

“Companies today are ailing a number of things, most of which are outside of the company’s control. That’s why this type of support – SBA grants and grants like the Small Business Stabilization Fund – is critical, ”said Gregory Davis, managing strategist, Rainier Beach Action Coalition. “But we can’t stop here. Partnerships between municipalities such as city, district, state, federal government and business are important. I hope these partnerships will be a catalyst for the continued support of our small businesses. ”

To qualify for a grant, a small business or nonprofit must currently be open and operating, have 50 or fewer full-time equivalent employees, be located within the Seattle city limits, have no more than two locations, and have annual net sales of or less than 2 Million US dollars and has an annual net loss equal to or greater than the grant amount applied for based on City Business and Occupation (B&O) data. Nonprofit organizations are eligible if they are performing arts organizations, cultural institutions, and organizations providing technical assistance to businesses. In order to ensure that support is provided to businesses that are most likely to have suffered disproportionate financial losses, funding will be given priority to applicants with unequal access to capital, including applicants who meet any of the following criteria: Black, Indigenous and Colored Owners (“BIPOC”); owned / run by women; Are located in a census area with at least 30% poverty or no more than 60% median income (as determined by the eligible US Small Business Administration census areas). All companies and nonprofits that receive a grant must pledge not to cut wages and benefits granted prior to the COVID-19 emergency.

“I opened my business in 2019 and I didn’t finish important things like my website and marketing tools before the COVID hit. I am grateful that I had prepared all my documents and that I was able to apply for and receive a stabilization grant last year. I was able to use my scholarship to have a website developed, pay for necessary advertising and marketing tools, and keep the business going while I completely restructured my operations. Because I had that support, I avoided closing down when it was no longer possible to do business in person and was able to develop online counseling that kept me in business, ”said former SBSF fellow Jenea Burrell , Owner of Hair Like Minen LLC.

To help small business owners prepare the information needed to apply for a grant, OED will host a virtual webinar on October 21st at 2:00 p.m. October 21st. Bilingual interpretation and translated materials will be available in Amharic, Chinese, Korean, Somali, Spanish, Thai and Vietnamese. Interested applicants can register for the SBSF information event here. For accommodations, accessibility information, or assistance with language access, please contact the Seattle Office of Economic Development at 206-684-8090 or oed@seattle.gov. Further information on all admission requirements and the application process can be found at seattle.gov/SmallBusinessStabilizationFund. Applications are accepted from October 19, 2021 to November 9, 2021, 11:59 p.m.