Danbury to distribute $38K to small businesses hurt by COVID-19

DANBURY — The city’s office of economic development will distribute more than $380,000 in limited, one-time direct financial assistance to eligible small businesses in Danbury that are recovering from the pandemic.

“The impact of the pandemic is still being felt by many businesses, and the goal of this program is to lift some of that financial burden, to allow businesses to continue operating and thriving in our community,” Mayor Dean Esposito said in a statement.

Drawn from Danbury’s allotment of federal pandemic relief aid distributed under the U.S. American Rescue Plan, qualifying businesses can use the city’s website to apply between Oct. 5 and Oct. 31 and could receive up to $5,000 in assistance depending on need, according to a press release on the program.

Including the money for the small business relief fund, the city has allocated $21 million out of the total $32 million received under the federal grant program, which is administered by the U.S. Department of the Treasury.

Danbury Economic Development Director Shay Nagarsheth said Monday he has “heard from the business community that this is a main priority in the pandemic relief effort.”

“Today, the Esposito administration has delivered, and we look forward to providing our small business community with the help it needs,” added Nagarsheth.

Eligible applicants must be located in Danbury, have 10 or fewer employees, and be independently owned and operated with less than $1.5 million in gross revenue recorded in 2019.

Additionally, the businesses applying “should demonstrate that such funds will be used exclusively for future expenditures that will add value, quality, desirability and/or attractiveness to (the) business and community.”

Similar programs in Bethel and Brookfield allocated a combined amount of roughly $1 million to eligible small businesses in those municipalities.

After announcing the town’s small business fund last fall, Bethel Economic Development Director Janice Chrzescijanek said officials found, “99 percent of businesses were impacted” by the pandemic while an estimated “20 percent of businesses were closed, 71 percent were in need of immediate cash flow, and there was an 81 percent revenue decline.”

In December, an announcement from the town reported the program saw nearly $128,000 in grants awarded to 34 Bethel-based small businesses.