More than 500 small business owners show interest in Pueblo COVID financial assistance program
In the three weeks since the Pueblo City Council approved allocating $5 million to help small businesses during the COVID-19 pandemic, more than 500 business owners have requested applications for funding.
According to the home page of the city website, the program is suspended and no more applications are being accepted. The city sent applications to 491 qualified business owners, with 81 reviewed so far and 74 approved for a total of $1,2 million.
A three-member committee comprised of a banker, an accountant and a local merchant is evaluating the applications and deciding who will receive loans of up to $100,000 and grants of up to $20,000.
Of the funding approved so far, around $662,000 is in grants and $537,000 is in loans.
There have been changes in the emergency program fund that will transfer money from a voter-approved half-cent sales tax used for creating businesses in the city.
Funding recipients will now have five years to repay the loans, instead of 10 years as initially determined by the council. Also, applications will no longer be accepted through Oct. 1 -- an indication that the demand for applications may have surprised, if not overwhelmed, city officials.
The local money is intended to help struggling businesses remain afloat during the pandemic and be ready to fully reopen as soon as the crisis ends.
Among the recipients is Chris Walters, owner of DJ's Steakhouse, which has been closed nearly two months because of the pandemic and will not be open Sunday for Mother's Day, one of its busiest days of the year.
"We're a fine dining establishment, so trying to exist on delivery and carry-out service just doesn't work," she said. "We sell some grocery staples such as hamburger, steaks and chicken but it doesn't amount to very much. I'm very thankful that I applied for $18,000 in grant funds and learned Monday that I'm approved."
Walters plans to use much of the money to replace lost inventory -- an important expenditure with food costs expected to rise at least 25% for businesses when they reopen.
"I'll spend some to buy plate covers," she said. "I think that's something worth having to reassure customers. I'm also spending some money to expand and renovate my patio area because I'll lose half of my indoor seating to provide more health safety for my customers."
Walters said many restaurant owners can expect other changes.
"Salt and pepper shakers may go away," she said. "Refills will have to come in a clean glass and no longer in the same glass. Menus may become disposable to save the time and effort of constantly wiping them off. Initially, at least, we can't use anything that can be touched over and over again at the table."
Mary Ann Lee, owner of Lion Godz beauty and tattoo parlor, said she applied for loans and grants of between $20,000 and $25,000.
"The pandemic came during tax season," she said. "That's when most of our customers come. Now, getting a tattoo isn't affordable for many of them. We just reopened a few days ago. We want to use the money to buy property in another location and expand the business. We wanted to move this summer, but that's on hold now."
Officials said the money will not duplicate state and federal funding that businesses have already received or applied for.
Funding can be used for capital needs such as rent, mortgage and upgrades to promote health safety, inventory, and general operating expenses.
Loan recipients will repay the money at 1% interest, with no payments required for the first year. Officials plan to provide oversight to ensure that none of the money is misspent.
