Berkeley Releases over $1.7 Million in Grants to Support Small Businesses and Arts Organizations Impacted by Coronavirus
April 27, 2020
BERKELEY – Today, the City of Berkeley is awarding $1,756,444 in grants to businesses and arts organizations whose revenues have been significantly impacted by the COVID-19 pandemic.
“Berkeley’s small businesses and arts organizations are suffering, and they can’t wait for state and federal relief,” said Mayor Jesse Arreguín. “When the shelter-in-place order was issued we knew our local economy was going to be hit hard, and we knew it was incumbent on us-in local government-to shield our community from the fallout of a global pandemic. These are grants, not loans, and they’re a tangible indication of the intangible bond this community shares, a community that continues to stand together to support one another.”
The Berkeley City Council on March 17, 2020, unanimously approved the Mayor’s proposal to launch the Berkeley Relief Fund. The grants released today are from the City’s initial contribution of $3 Million. The community contribution to the Fund, launched 41 days ago, has raised $842,000 as of last week.
Fundraising efforts continue, and this first round of grants includes 352 Business Continuity Grant Awards totaling $965,999, and 47 Arts Organization Continuity Grant Awards totaling $790,445 (with 19 additional Arts Organization applications pending evaluation). Tenants, who are in danger of losing their housing due to loss of income, are accessing $1 Million from the Berkeley Relief Fund on a case by case basis.
"The Berkeley Chamber is thankful for the support of the City in creating a new tool to help our diverse businesses through these unprecedented economic times", said Kirsten MacDonald, CEO of the Berkeley Chamber of Commerce. "Supporting our small businesses through the Berkeley Relief Fund will make us more resilient as we navigate the complexities of reopening our economy”.
State and federal dollars are expected to provide additional relief, however, the timeline on those funds remains unknown. Additionally, much of the relief provided thus far has come in the way of loans, creating additional debt at a time when economists speculate that we’re entering a recession far more serious than the 2008 financial crisis.
“While we recognize that the Berkeley Relief Fund grants are not enough to sustain our businesses and nonprofits over the long term,” added John Caner, CEO of Downtown Berkeley Association, ”we are grateful that the City and community have stepped forward to help fill the gap until availability of federal and state relief. Small businesses and arts organizations are the lifeblood of our commercial districts.”
The City of Berkeley is home to approximately 5,000 small businesses and over 150 arts organizations, playing a crucial role in the local economy. In 2018, 42% of all active businesses in Berkeley identify as minority owned and nearly 20% of startups in Berkeley have at least one woman founder.