Area businesses find emergency help from local fund

By Nicholas Ketchum
Contributor

It’s business as unusual in Washtenaw County—and beyond—for the foreseeable future.

Gov. Gretchen Whitmer’s “stay at home,” aimed at slowing the spread of the coronavirus, required that all “nonessential” businesses close. Now, many businesses in the area face economic uncertainty.

Some businesses in jeopardy

“A lot of people are worried,” said Charlie Penner, regional director of the Michigan Small Business Development Center of the Greater Washtenaw Region. WCC is the host institution for the organization.

Penner said many businesses are asking for help during the closures.

“A lot of people are rallying together at this time,” Penner said.

Some well-known names, such as Literati, a bookstore in downtown Ann Arbor, are raising funds online as finances deteriorate. The bookstore managed to raise over $112,000 on a GoFundMe.com fundraising campaign.

Other local businesses might not fare as well, and some have already closed permanently.

The Covid-19 pandemic threatens to slash the number of Michigan restaurants significantly, according to Justin Winslow, president and CEO of Michigan Restaurant and Lodging Association, in a press release.

“There are more than 16,000 restaurants in this state,” said Winslow in the press release. “Under the current circumstances, as many as one-third might not make it through without significant financial help and flexibility from our elected leaders.”

Kristin Gapske, director of the Entrepreneurship Center at WCC, said her office has received many calls from people running into business trouble.

Gapske said the EC’s physical offices are closed, including the coworking space, but other activities, such as one-on-one mentoring and resource distribution, are happening remotely.

“The EC’s mission is more relevant than ever,” Gapske said. “We’re concentrating on emergency crisis needs right now.”

Local emergency funding

An emergency fund was announced last week, which serves qualifying small businesses in Washtenaw County: the Washtenaw Small Business Emergency Relief Fund.

The fund is a joint effort between WCC’s Entrepreneurship Center and SBDC, Ann Arbor SPARK, and the Washtenaw County Office of Community & Economic Development.

According to the fund’s website at washtenawsbf.com, it will provide working capital grants in amounts up to $5,000 to qualifying small businesses experiencing “financial hardship due to the COVID-19 crisis.”

Businesses must be located in Washtenaw County, as well as meet maximum employee and income requirements to qualify for assistance.

The fund was made possible by a $1 million gift from the Song Family Foundation.

Gapske said she hopes other local philanthropists will provide additional financial support to the fund.

Many businesses have already submitted grant applications, and fund organizers are reviewing and following up within a couple days, Penner said.

He said similar funds exist in Jackson County, Livingston County and Detroit.

For local nonprofits, The United Way of Washtenaw County established a “COVID-19 Community Relief Fund,” also funded in part by the Song Family Foundation. The fund will support local nonprofits in helping vulnerable community members.

Federal emergency funding

Last week, Congress passed the “Coronavirus Aid, Relief, and Economic Security Act,” or the “CARES Act.”

The act includes sweeping financial assistance for small and large companies, as well as additional support for healthcare providers.

The act also provides a $1,200 check for independent individuals making up to $75,000 adjusted gross income, as well as an expansion in unemployment funds.

The U.S. Small Business Administration has also set up a disaster assistance fund, providing low-interest loans to businesses and homeowners. More information can be found at sba.gov/funding-programs/disaster-assistance.

Comments

comments