Delco OKs second round of small-business grants
Delaware County Council unanimously approved allocating $14 million for a second round of small business grants for both for-profit and non-profit businesses impacted by the COVID-19 pandemic.
In April, council announced the establishment of the Delco Strong Small Business Support Grant Program, a $1.75 million grant program for businesses with fewer than 50 employees. More than 1,000 businesses applied for the $7,500 grants. Although the initial funding was only enough for 230, council earmarked about $6 million of Coronavirus Aid, Relief and Economic Security Act funding to assist the remaining 800.
Now, council is gearing up to launch a second phase of the program to help even more businesses with $10 million allocated to assist for-profit businesses and $4 million for non-profit organizations. This funding is also coming from CARES Act revenues.
J. Patrick Killian, director of the Delaware County Commerce Center, ascertained that with the 8,760 hours in a year, Delco businesses have been partially or completed shuttered for 2,304 hours.
“Thanks to council and your tangible commitment and ... your incredible support for the business community, together with the Redevelopment Authority, we’ve been able to throw over $6 million in grants out on the street,” he said, adding that the road to stability hadn’t been reached yet.
Laura Goodrich Cairns, deputy director of the Delaware County Commerce Center, explained this round was geared for businesses that were most vulnerable businesses that may not survive the pandemic.
She said businesses with up to $4.5 million annual revenue documented by tax return would be eligible for up to $10,000 grant and those with up to $9 million in annual revenue would be eligible for up to $20,000 grant. The first round recipients will receive an additional boost of $2,500 each.
Minority-, women- and veteran-owned businesses in Delaware County and those in industries hardest hit like barbers, groomers, hair salons, retail entities and construction and trade would have priority this round.
County Councilwoman Elaine Paul Schaefer explained that the website delcostrong.delcopa.org would have details for this second round on June 24. Then, two weeks later, on July 7, the application period opens for both non-profits and forprofits. At that point, for profit businesses will have three days to submit their application and non-profits will have a two-week period to do so.
“Delaware County Council has made the decision to use our CARES money and to use our resources to this end,” she said. “It’s because all five of us recognize the importance of this local economy and our small businesses and we can get through this COVID crisis on a health basis and we’re going to but if we come back to an economy that is devastated, we’re going to be in a bad place. That is the end game here of investing this money in our small businesses so that when we come through this on the public health end, our economy is still surviving and in the position where it can recover quickly.”
Goodrich Cairns also shared statistics available through the Census.gov survey.
In 2017, they had 11,000 small businesses surveyed and that 90 percent of the businesses in Delaware County employ fewer than
100 people, she said, adding that the average revenue source for those businesses was $6.5 million.
The Delaware County Economic Development Oversight Board is administering the grant program with help from the Foundation for Delaware County for non-profits.
Frances Sheehan, president of the Foundation for Delaware County, spoke about her agency’s enthusiasm with their role in helping distribute these grants to non-profit agencies.
“The board and staff at the Foundation for Delaware County so appreciate the opportunity to assist with non-profit grants during the coming months,” she said. “The inclusion of nonprofit grants in Delco Strong
2 is a testament to council’s understanding of the critical role that non-profits play, not just in providing services but as employers and economic drivers in many communities.”