Buffalo, N.Y. (WBEN) - The Buffalo Common Council approved on Tuesday a Small Business Assistance Program (SBAP) contract under the American Rescue Plan Act (ARPA) Relief Program. This initiative, championed by the Council, has been advocated to assist struggling small businesses across the City of Buffalo in their recovery from the COVID-19 pandemic.
In a special session back on July 27, the Council successfully advocated for $4.3 million in ARP grants for small businesses as the result of the Council's approval of a partnership between the City of Buffalo and the Mayor's Office of Strategic Planning. As part of this initiative, the National Development Council (NDC) has been enlisted to collaborate with the City and oversee the administration of the program.
"This initiative is more than financial aid; it's a beacon of hope for our local entrepreneurs," said University District Council Member Rasheed N.C. Wyatt, Chair of the Buffalo Common Council Finance Committee. "We are committed to ensuring these resources are not just distributed but utilized effectively working closely with the Mayor's Office of Strategic Planning who will be administering this relief with the National Development Council (NDC)."
The Council's commitment to aiding local businesses has been exemplified by the approval of a partnership between the City of Buffalo and the Mayor's Office of Strategic Planning.
The total funding for small businesses stands at $3.5 million, as the $4.3 million allocation includes $800,000 in administrative fees for NDC, funded separately through an ARP amendment.
The ARPA Small Business Program Subrecipient Agreement is a pivotal aspect of this endeavor. The Common Council's approval of this contract between the City of Buffalo, the National Development Council (NDC), The Exchange at Beverly Gray, and the Buffalo Urban League for the professional services associated with the "City of Buffalo Small Business Program with American Rescue Plan Funds" is designed to offer financial and technical assistance to small businesses in Buffalo, aiding them in their recovery from the COVID-19 pandemic and bolstering their resilience for the future.
The program will utilize American Rescue Plan Funds, amounting to a $4.3 million small business assistance grant fund. This fund includes $3.5 million in business grant financial assistance, which will be evenly distributed among the nine Council districts, $450,000 for technical assistance, and $350,000 for program administration and marketing costs.
Additionally, a separate optional loan fund of $2 million will be available to grant recipients.
Grant awards will primarily range from $5,000-to-$25,000 per business, with access to matching loan funds.
To be eligible, applicants must meet specific criteria, including being the principal owner of a small business in Buffalo, having been in operation before January 1, 2021, having between $10,000 and $1.5 million in annual revenue in fiscal years 2021 or 2022, and experiencing economic or financial hardship due to the COVID-19 pandemic or other economic factors.
More information on how businesses can apply for this funding is forthcoming, and will be later announced by the Mayor's Office of Strategic Planning and shared by the Buffalo Common Council.
The program's priority is to support small businesses with fewer than 50 employees, with $1.5 million of the available grant funds exclusively dedicated to low to moderate-income areas and/or minority and women-owned businesses.
Eligible businesses can receive grants of up to $7,500 for 2021 or 2022 gross revenues between $35,000 and $150,000, up to $12,500 for gross revenues between $150,001 and $500,000, and $25,000 for gross revenues between $500,001 and $1 million. The final funding amount will depend on the project scope, available funds, and remaining need.
