City officials consider $5M aid for businesses’ water main break losses
By the end of July, Atlanta businesses impacted by the two water main breaks that upended the city for days may see thousands of dollars from the city start to hit their bank accounts, officials said at a City Council committee meeting Tuesday. Atlanta businesses impacted by two water main breaks may receive $5 million in aid by the end of July, according to officials at a City Council committee meeting. The city's mayor, Andre Dickens, announced last week that the city would establish a fund to aid affected businesses. The fund will be managed by the city's development agency, Invest Atlanta. The money is intended for businesses that were closed or impacted for one to three days and have less than $500,000 in revenue. However, nonprofits without for-profit activity, companies that generate income from gambling, home-based businesses, pawnshops, liquor stores, and nightclubs will not be eligible for grants. The Invest Atlanta plans to vote on the fund on June 20 and notify businesses if they receive a grant.
Publié : 3 semaines plus tôt par Mirtha Donastorg dans Business
By the end of July, Atlanta businesses impacted by the two water main breaks that upended the city for days may see thousands of dollars from the city start to hit their bank accounts, officials said at a City Council committee meeting Tuesday.
Mayor Andre Dickens announced last week the city would set up a $5 million fund to help the affected businesses. Among the losses: restaurants had to close on lucrative Friday and Saturday nights and the company that runs Ponce City Market’s popular rooftop food and attractions said it lost $200,000.
Johnny Martinez, owner of Joystick Gamebar on Edgewood Avenue, implored the council members to set up the fund quickly with a particular focus on small businesses. He said he would be late paying his rent because of his estimated $8,000 to $11,000 losses. Martinez spoke at the community development and human services committee meeting.
The fund is intended to help owners like Martinez recoup some of their losses, but the big question entrepreneurs wondered is: how? When the mayor announced the fund, details were slim. All that was known was the amount and that the fund would be managed by the city’s development agency, Invest Atlanta.
But on Tuesday, the agency’s CEO and President Eloisa Klementich told council members how Invest Atlanta plans to disperse the funds and prioritize small businesses who were impacted the longest.
Nearly 7,000 businesses were affected by the initial May 31 boil water advisory that covered a large swath of the city, Klementich said. But while repairs and water service were restored by June 3 to some parts of the city, the Midtown water main break left about 3,700 businesses under the boil water advisory until June 6.
The money is intended for businesses that don’t submit insurance claims. The amount of the grant will depend on a business’ revenue and how long they were impacted, according an Invest Atlanta presentation.
Those closed or impacted for one to three days and have:
— less than $500,000 in revenue will be eligible for about $2,000 in funding; four or more days, about $6,000;
— revenue of $500,000 to $1 million will be eligible for about $4,000 in funding; four or more days, about $8,000;
— revenue of more than $1 million will be eligible for about $5,000 in funding; four or more days, about $10,000.
“We had several conversations with small businesses and what they told us was that their loss per day was anywhere between $1,000 to $2,000,” Klementich said.
But not all businesses will be eligible. Nonprofits without for-profit activity, companies that derive some income from gambling, home-based businesses, pawnshops, liquor stores and nightclubs cannot receive grants, according to Klementich.
Klementich said if every business that was impacted applied for funding, the total cost would be around $9 million, almost twice what the city is budgeting. But Invest Atlanta estimates only about 40% of eligible businesses will apply, based on the turnout for pandemic relief funds. If that estimate holds true, then it will cost the city between $4 million to $4.6 million.
“We obviously won’t know until we get the applications in, but we feel pretty confident that statistically, we will be able to address … probably upward of about 700 businesses with this plan,” she said.
Councilman Matt Westmoreland floated a potential option for the council’s finance committee to increase the amount of the relief fund at Wednesday’s meeting, but did not give specific figures.
Committee members voted in favor of the ordinance after Klementich detailed Invest Atlanta’s plan. The ordinance will now go to the City Council finance committee on Wednesday. From there, the full council will vote on June 17, and if approved, Invest Atlanta will hold its first webinar for businesses that day, Klementich said. The agency will also set up a hotline for businesses to call.
The Invest Atlanta board plans to vote on the fund on June 20. Applications will be taken for two weeks, from June 24 to July 8. The agency would notify businesses if they receive a grant the week of July 29.
To apply, businesses will need to provide a point-of-sale report from the weekend before the water main breaks and then another from the impacted week. They will also need to submit an impact statement, their business license, a copy of their insurance policy and other documentation.
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