Millions Available From Phoenix Small Business Resiliency Grants Program

Press release from the City of Phoenix:

June 17, 2020

Millions Available Now from the Phoenix Small Business Resiliency Grants Program for COVID-19 Health Emergency Costs to Businesses June 17, 2020 7:00 AM

Grant award notifications have been delivered to 85 businesses in the first batch of Phoenix Microbusiness Resiliency Grants. These grants help offset losses related to the COVID-19 health emergency. The total grants value topped $300,000. It’s part of the Phoenix Small Business Resiliency Grants program offered by the city of Phoenix and the Phoenix IDA.

A $14 million allocation approved by Phoenix Mayor Kate Gallego and the City Council funded the creation of the Phoenix Small Business Resiliency Grants Program. It is one of the largest programs of its kind in the U.S. Phoenix funded Small Business Relief Grants, Round Two, for the Phoenix IDA, and the city created two new grant programs, the Phoenix Microbusiness Resiliency Grant and the Phoenix Restaurant Restart Resiliency Grant.

“As we work to ensure financial assistance reaches every corner of our business community, Phoenix is making certain that microbusinesses, entrepreneurs, and the self-employed are not falling through the cracks,” said Mayor Kate Gallego. “Small businesses are the backbone of our economy, and recognizing their diversity is key to ensuring economic resiliency.”

Basic eligibility requires a business to be located in the city of Phoenix and open since January 1, 2019. The business must demonstrate a gross sales decline of 25 percent, or more, when comparing March and April 2020 with the same months in 2019.

Microbusinesses and small businesses with fewer than 25 employees represent 71 percent of all businesses in Phoenix. Altogether, the city allocated enough money to help more than 2,000 of these businesses with grants, which will not have to be repaid.

Kenneth Bryant, the owner of Most Valuable Barber, 513 E. Camelback Rd., was one of the first microbusiness grant recipients. Bryant works with one other barber. The two are a combination of the traditional barbershop and a mobile business when they hop in their cars and travel to clients’ homes or offices.

“This grant is going to help me a lot,” said Bryant. “It’s definitely keeping me afloat while we get through this (COVID-19 pandemic). I’m going to use the money to catch up on my lease and bills. Now, I’ll be able to make it.”

Most Valuable Barber is one of the personal services businesses to receive microbusiness grants. The diversity of small businesses and owners receiving the first batch of grant awards reflects the diversity of Phoenix’s smallest businesses.

Asahi Bakery, 6056 N. 16th St., just north of Bethany Home Road, is one of the retailers receiving grants in the first batch. Chientai Wang said the grant is going to help him get through the slow part of the year.

“Summers are normally slow, and we lost almost all of our major sales months this year with Easter, Mother’s Day and graduation events all being canceled. People just aren’t ordering big cakes,” he said. “Things will pick up again in October. What really hurt is that 30 percent of our business is making desserts for hotels and buffets. We’ve lost all that business, and people are just ordering smaller cakes. There are no big parties now.”

Wang said that the grant helps him catch up on fixed costs like rent and insurance. He said that the reduced demand tempers total food costs, but his operating costs are just the same.

The Phoenix IDA Small Business Relief Grant offers as much as $10,000 for qualifying small businesses located in, and adjoining, low-income neighborhoods in the city. Businesses must have had fewer than 25 employees on March 1, 2020, and calendar year 2019 gross sales of under $3 million.

The Phoenix Microbusiness Resiliency Grant is open to businesses located anywhere in the city with five or fewer employees and under $1 million in 2019 gross sales. Microbusinesses can have brick and mortar addresses, be a home-based business or a mobile business.

Phoenix Restaurant Restart Resiliency Grants applications are open. The grant helps cover the costs of reopening a restaurant by September 1, 2020. Restaurants with fixed Phoenix locations and food trucks headquartered in Phoenix are eligible to apply for the grant.

Funding will help more than 2,000 restaurants, and micro- and small businesses. The Arizona Community Foundation administers all grants. Information and applications are on the web at AzFoundation.org/PHXGrants. Details are also available in flyers from Phoenix.gov/Resources.

This press release was produced by the City of Phoenix. The views expressed here are the author’s own.