Mayor announces aid for businesses

Denver Mayor Michael Hancock has announced an economic relief package for local businesses hurt by closures and other social distancing measures as the novel coronavirus spreads throughout Colorado.

The city will create a $4 million relief fund that will offer cash grants of up to $7,500, Hancock said Thursday afternoon. Denver also will partner with financial institutions to establish a micro-loan program to further support small businesses, Hancock said.

“We are acutely aware that it’s going to be a long road to recovery,” Hancock said. “We’re going to get through to the other side of this.”

City officials will partner with the Downtown Denver Partnership and the Mile High United Way to distribute the relief money, Hancock said. The downtown partnership will also seek additional donations for the fund.

Businesses disproportionately hit by the economic shortfall will receive priority, Hancock said.

“This has been a hard time for small businesses in Denver and their employees, especially restaurants, bars, mom-and-pop shops and so many others,” he said.

Businesses to which Denver’s

economic office has loaned money will be able to temporarily defer loan payments if needed, Hancock said.

The office is also partnering with state and federal governments to enable businesses to apply for economic injury disaster loans which could provide up to $2 million to those affected, Hancock said.

The announcements weren’t only focused on businesses.

“Denver Arts and Venues will award grants of up to $1,000 to individual artists who live in Denver whose incomes are adversely affected due to the cancellation of events, classes, performances and other creative work,” Hancock said.

The city’s Department of Finance will also waive the 15% penalty for late payment on use and occupational privilege taxes due in March and April, Hancock said. For Joe Covell, owner of Lawrence Covell, a highend clothing store in Cherry Creek, the relief package is good in theory but it’s not enough. The possibility of a $7,500 check wouldn’t put a dent in most businesses’ revenue shortfall, he said.

Already he’s speaking of putting bills on credit cards.

So far, none of the store’s 10 employees have been laid off but that could change, he said, speaking fondly of his team.

“We may very well have to lay off just because it makes more sense for them to collect unemployment,” Covell said.

Relief from sales and property taxes would be a good addition to the plans currently in place, Covell noted. But still he worries about his place in line for any relief since retail businesses weren’t specifically ordered to close as restaurants and bars were.

Covell said his business closed voluntarily for the public good, but even if it hadn’t, people aren’t shopping now.