Columbia gives $1 million to local businesses to recover from coronavirus shutdown
The city of Columbia is distributing $999,750 to 220 local businesses, city council members were told on Tuesday.
The money will come out of a fund the city set up after the coronavirus outbreak and the city and state’s response, which forced many businesses to either shut down or scale back their operations, leading to a historic spike in unemployment.
The city’s small business office did not identify on Tuesday which businesses in the city will receive the money, but broke down the payouts by industry. Restaurants were the largest group, receiving 16% of the funds, followed by salons and barber shops at 13%, professional services at 11% and retail at 10%.
The money was distributed on a first-come, first-serve basis, with the amount depending on an individual business’ needs, said Melissa Lindler, director of the city’s Office of Business Opportunities. Thirty-seven percent of applicants received between $2,000 and $4,000, and another 34% received between $5,000 and $8,000.
“Some awards may be higher because the rent and the lease may be lower in one part of the city than in another area,” Lindler said.
The need was underscored by survey data from the city’s small businesses, showing most businesses have shed employees since the pandemic hit. Three percent of businesses reported having zero employees before the COVID-19 shutdown. Afterward, 21% reported having no employees.
Of those businesses receiving money from the program, 38% are minority-owned, and 19% are owned by non-minority women. Forty-five percent have been in business in the city for 10 years or more, while 15 percent have been operating for two years or less.
33.5% said they intend to use the money to make payroll, while 32% will use it to make rent.
“We know a lot of people needed this money, especially at the beginning of April,” Lindler said.
Lindler said there likely will be a future need for more support. The city will transfer $400,000 out of a loan-loss program created to support small businesses to support another 134 applications city staff are still reviewing. Another $100,000 will be put aside to support businesses reopening once the coronavirus lockdown is lifted.
The city had another 492 incomplete applications in its system at the deadline for these funds to be distributed. While some businesses did not qualify because they were franchises or were outside the city limits, Lindler said her office was referring applicants to federal funding sources for small businesses. Richland County is also in the process of setting up its own $500,000 business-support program.
This story was originally published April 21, 2020 at 4:34 PM.
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