Harris County may launch second $30M reduction fund to support tiny enterprises survive pandemic

Harris County will distribute a further $30 million in federal COVID-19 relief assist to support little companies weather conditions the pandemic.

Commissioners Courtroom unanimously permitted a system to award up to 2,000 little enterprises grants ranging from $5,000 to $25,000.

“The individual sacrifices small small business house owners make for their community working day in and day out are massive,” County Decide Lina Hidalgo said. “And we owe it to them to support them as we make it by the COVID crisis and the related financial worries.”

This is the county’s second round of grant funding for compact firms. Commissioners Court docket accredited $10 million in forgivable business enterprise financial loans final spring, and later additional a $30 million grant software that summer time.

Hidalgo cited a analyze by the U.S. Census that located smaller organization profits has declined by 38 percent since January 2020. She stated she hopes to open applications Sept. 20 and urged modest organization house owners to “mark their calendars” so they can get aid rapidly.

To be eligible under the latest system, enterprise homeowners will have to have a private yearly revenue beneath $48,400, once-a-year revenue under $500,000, be registered and found inside of Harris County, have fewer than 30 workforce, opened right before April 2020 and be existing on all taxes.

Tax-exempt firms, as nicely as gambling and sexually-oriented establishments, household builders and speculative true estate investors are ineligible.

The county will give precedence to minority and females-owned enterprises, small business entrepreneurs with limited English proficiency, firms with much less than 10 staff members or much less than $250,000 in yearly profits and organizations in inadequate zip codes.

Money can be applied for a wide range of costs, like payroll deal labor provides rent or mortgage loan payments, excluding particular residences technological know-how providers, utilities or other prices specifically connected to running a organization. Proprietors also can use the assist to spend down enterprise money owed incurred during the pandemic.

The county will shell out LiftFund, a Texas-dependent loan provider that specializes in supplying cash for tiny corporations, $2 million to administer the method.

“Small companies are the heartbeat of the overall economy,” stated Michi Bruns Clay, vice president of LiftFund’s East Texas region. “Therefore, Harris County and LiftFund are dedicated to casting both of those a broad and deep net to make certain we fulfill these tiny businesses where they are, and we give them the support they will need to implement for this software.”

[email protected]