How Cities are Helping Small Businesses During COVID-19
Photo by John Schnobrich on Unsplash
Some forecasts among economists and TV pundits suggest that the U.S. is poised for a swift recovery in the wake of COVID-19. Yet, like everything in 2020, there is far more to the story.
As you have probably heard by now, the economy is great for some folks, but not so great for others. For example, the August unemployment rate in the financial industry was just 4.2%. By comparison, the unemployment rate for the food service, leisure and hospitality industries was 21.3%. There is clearly a disparity, depending on the type of work.
Thankfully, cities are stepping up to help small businesses get back to pre-pandemic form. Many are offering grants, deferring taxes and providing other forms of financial relief.
Four Cities Helping Small Businesses During COVID-19
Here are four cities that are truly stepping up their small-business games – offering a variety of relief services to reeling business owners.
Topeka, Kan.
(Photo courtesy of Greater Topeka Partnership)
Have you wondered how Middle America has navigated the pandemic?
As small businesses and first responders bear the brunt of the coronavirus crisis, one program in Kansas is helping many stay afloat.
The Greater Topeka Partnership, an organization that creates economic growth for Kansas’ state capital, quickly pivoted to provide relief for its communities by launching the HOST Relief Program, an emergency fund for small businesses, displaced workers and first responders impacted by COVID-19.
Topeka’s program, recently featured in Next City, is funded through donations from large companies, distributing over $1 million to more than 285 small businesses in the capital city. Funds have also been donated to first responders and furloughed workers in the form of gift cards and vouchers, helping them purchase meals and supplies from local businesses.
Allen, TX
(Photo courtesy of Allen Economic Development Corporation )
In Allen, Texas, a city of over 106,000 residents – and a northern suburb of Dallas – officials launched a $3 million small business grant program in June 2020 to speed the economic rebound.
Developed by the City of Allen Economic Recovery Task Force and led by the Allen Economic Development Corporation (AEDC), the program assists companies earning less than $15 million and provides up to $25,000 for recovery efforts.
Meanwhile, like many cities nationwide, officials in Allen also launched the #ShopAllenTX campaign – to help boost reopening efforts of the Allen business community (which is a retail leader for the surrounding area). The “Authentically Allen”/shop local campaign was also deployed by the economic task force and includes special promotions, discounts and offers “ensuring (that) residents are motivated to spend their dollars where it counts most,” the AEDC noted.
Detroit, Mich.
(Photo by Nadine Shaabana on Unsplash)
With so many people doing their shopping online during the pandemic, a robust web presence is essential.
To curb the digital divide emerging with the rise of eCommerce, Detroit, Mich., has partnered with Rebrand Cities to create Digital Detroit. It is a free resource for Motown businesses offering website development, content creation and consultation for those seeking to establish an online presence during the economic downturn.
The partnership aims to get 10,000 small businesses online. According to Next City, eligible participants received instruction in website development (with three months of free hosting), branding, content creation and more.
The first group of Detroit-area businesses completed the course in July, and there is talk of offering the program to another cohort.
Chattanooga, Tenn.
(Photo by Christian Bowen on Unsplash)
According to city officials and analysts, Chattanooga, Tenn., has the fastest and one of the least expensive high-speed internet services in the U.S., which has helped earn it the moniker “Gig City.”
Like the rest of the country, many small business owners in Chattanooga are challenged by everything from personal protective equipment (PPE) to occupancy rates, child-care and obtaining financial assistance. The city put all of those gigabytes to good use by offering a series of webinars for its small businesses.
Each webinar features owners and managers of successful businesses, who share information on best practices and strategies to stay afloat. In one such webinar, members of the COVID-19 Joint Task Force were on hand to review safety guidelines for businesses reopening and continuing operations during COVID-19, local station WRCB-TV reported.
“We realize that a lot of our business owners kind of feel like they are lost at sea, and we don’t want them to feel that way,” said Jermaine Freeman, deputy chief of staff to the Chattanooga mayor, according to local outlet News 12 Now. “We want them to be able to open as safely as possible and to know all the guidelines in place.”
Moving Forward
Whether it is an economic task force, digital and creative assistance, gift cards and vouchers for furloughed workers, or other unique offerings, it is clear that cities of all sizes across the U.S. are doing what they can to aid their small businesses. The question remains: Will it be enough?
Know of any other cities that are finding innovative ways to help small businesses during the pandemic slowdown? Let us know in the comments below.
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