West Palm program to waive COVID relief loans a big boost for minority-owned businesses

Wayne Washington, Palm Beach Post
·3 min read
Salento Coffee in downtown West Palm Beach is among the businesses that can apply to have their COVID-relief loans converted to grants that do not have to be repaid. They will be required to spell out what the money was used for and to be current on the loan.
Salento Coffee in downtown West Palm Beach is among the businesses that can apply to have their COVID-relief loans converted to grants that do not have to be repaid. They will be required to spell out what the money was used for and to be current on the loan.

West Palm Beach has decided to forgive about $95,000 in COVID relief loans given to local small businesses and those owned by women and minorities.

The city is also establishing a $500,000 "First Steps" grant program aimed at helping such firms get started and to aid in their marketing, inventory acquisition and property improvement.

The moves are part of a push from Mayor Keith James' administration to expand economic opportunities for small businesses and those owned by women and minorities. Such firms often struggle to find the money to get established and sometimes lack the track record to get loans for expansion or other purposes.

First Steps' goal is "to support and promote strong business recovery and continuity within the community, after a recent survey revealed some businesses continue to suffer from the economic uncertainty presented by the pandemic," according to a summary provided to the city commission when it voted unanimously in February to establish the program.

In November, five West Palm Beach businesses — Salento Coffee, Beauti4body, BDS Catering and Productions, Serge W. D'Haiti CPA and Mestizo Peruvian Cuisine — borrowed a collective $95,000 through the city's $150,000 COVID relief loan assistance program.

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Those businesses can now apply to have their loans converted to grants that do not have to be repaid. They will be required to spell out what the money was used for and to be current on the loan.

Documentation provided by the city shows that Beauti4body borrowed $15,000. Each of the other firms borrowed $20,000. The records show that the firms have only just begun to repay interest on their loans, and there is no indication that any are behind in their payments.

How West Palm's COVID assistance program works

West Palm Beach, like other cities, states and the federal government, established assistance programs to help businesses cope with loses incurred during the coronavirus pandemic, when stay-at-home orders reduced business traffic and sales.

West Palm Beach's program was aimed at firms that are often the most vulnerable — small businesses and those owned by women and minorities.

The First Steps grant program is also targeting firms in that category. Grants from the program will range from $5,000 to $50,000.

The marketing grant will be up to $20,000. The grant for equipment and inventory will be up to $50,000, as will the grant for property improvement. New business grants will be up to $20,000.

Applying businesses would have to be a for-profit firm registered with the state of Florida, based in West Palm Beach and certified by the city as a small business or one owned by a woman or minority.

Applicants must not have outstanding liens or violations with the city or its Community Redevelopment Agency.

The city's Office of Small and Minority Business Programs will review the applications and award grants based on a "first complete and eligible application received/first granted basis while funding remains available."

Will money for the grants be a continuing effort for the city?

Money for the grants will come from general fund discretionary funds that have not been directed to any specific purpose or department.

"I would hope that we can figure out a way to be able to provide this, but I can't speak to whether it's going to be a continuing line item," said Frank Hayden, director of the city's Office of Equal Opportunity.

City Administrator Faye Johnson said that will be up to the mayor and the city commission.

Funding for the program will be determined "on a budget-by-budget annual basis," Johnson said, adding that, as she and her staff build the fiscal year 2024 budget, money for First Steps has not yet been included.

"That certainly could be one of the priorities that the board looks at in terms of incorporating that," Johnson said. "I set the budget at the direction of the mayor and commission."

Wayne Washington is a journalist covering West Palm Beach, Riviera Beach and race relations at The Palm Beach Post. You can reach him at wwashington@pbpost.com and follow him on Twitter @waynewashpbpost. Help support our work; subscribe today.

This article originally appeared on Palm Beach Post: WPB starts grant program, forgives COVID loans to minority businesses