COVID-19 Local Updates: May 5, 2020
Updated: Jun 9
Mayor Frank Jackson laid out plans Monday for nearly $30 million in aid for Cleveland businesses and residents. The aid incudes $10 million from Cleveland’s economic development funds and about $18 million from federal aid.
The business relief money, $10.5 million in total, tentatively will be broken into three pots:
$5.5 million for restoring working capital. Large Companies with 30 or more employees would be able to borrow up $100,000; smaller companies up to $25,000. Money could be used to cover uncollected receipts, utilities, rent/mortgage and payroll.
$3 million for emergency working capital. This separate loan program would provide up to $10,000 to small businesses to address cash flow issues and pay business costs.
$2 million in emergency capital for specially affected. This loan program targets small Cleveland-owned businesses such as restaurants, barber shops, salons and storefront retail sites where workers are in close contact with customers. Money can be used to address business costs and pay for items such as personal protective equipment for workers. The loans, up to $20,000, are 50% forgivable.
The CARES Act assistance, part of a $2-trillion relief package approved by Congress in March, is directed more at individual assistance:
$11.3 million for rental assistance for people who have lost their jobs. Rental assistance has been the single largest source of calls to United Way, jumping 250% in a three-week period, Jackson said. The aid will be available for up to 90 days.
$4.2 million to help meet basic needs. This aid would be used for support for Food Banks, food delivery, senior services and utility assistance.
$2.5 million to assist special needs. This money would be used to assist people with AIDS and people using homeless shelters. It also could be used to defray costs at shelters for sanitation, alternative housing and additional staffing.
$500,000 for enhanced broadband services. While Cleveland schools have been closed because of the coronavirus crisis, many students have been using online programs to continue studies. But two of every three Cleveland school children don’t have internet access, Jackson said. This money would be used to help develop a long-term solution to that problem, in partnership with Cleveland schools and Digital C, a nonprofit that promotes digital literacy.