URA to offer rent aid to small businesses

The Pittsburgh Urban Redevelopment Authority is coming to the aid of small businesses that are having trouble paying their rent during the COVID- 19 pandemic.

URA board members are expected to vote Thursday on whether to authorize the pilot program, which calls on landlords to contribute to the cause as well.

Under the guidelines, the URA would provide up to $ 333 a month for a maximum of three months to help offset rents paid by small businesses with less than 30 employees in Community Development Block Grant- eligible neighborhoods.

The authority is offering to match whatever rent reductions are offered by landlords, up to the monthly maximum.

For example, if a business has a monthly rent of $ 1,000 and the landlord agrees to reduce it by $ 200, the URA would match that amount. That would leave the business with a $ 600 rent payment.

According to a report accompanying the proposed resolution, the program “is meant as emergency assistance to small businesses who may otherwise be nearing a point of closure.”

“The hope is that landlords recognize the dire position of certain tenants and assist in helping them cope while they are dealing with reduced revenues,” it stated.

The URA is allocating $ 40,000 for the program. The most any single business can receive over the threemonth period is $ 1,000.

Diamonte Walker, URA deputy executive director, said the expectation is that landlords will take reduced rent payments from struggling tenants rather than potentially no payment.

The authority, she noted, is “looking to address some of the economic stress that we’ve seen a lot of our Main Street businesses deal with in response to COVID- 19.”

“We take the optimistic view that these businesses, if given some strategic support, will survive this,” she said.

The URA is asking landlords to commit to reducing rent by a fixed amount for three months. Although the URA grants would go directly to the landlord, they can’t be used to reimburse that person or entity.

Community Development Block Grant- eligible neighborhoods include the Hill District, Homewood, Hazelwood and the North Side. Only businesses with a brick- andmortar location are eligible

The program is one of several initiatives the URA has launched since March to help small businesses cope with the impacts of the pandemic.