Nearly 800 Businesses Benefit from County Small Business Grants
(Kevin Elliott, April 27, 2020)
Oakland County, MI – Nearly 800 small businesses in Oakland County have been awarded more than $2 million in county economic stabilization funds to assist owners with payroll, mortgage and rent payments, utilities and other business expenses brought on by the COVID-19 pandemic, with a second possible round of funding expected in the near future.
Oakland County Executive David Coulter on Friday, April 24 announced that 797 small businesses in the county were awarded about $2.3 million in grants from the county’s small business stabilization fund. The fund includes $1.15 million from the Michigan Economic Development Corp. and a matching grant from the Oakland County Board of Commissioners. Coulter said the fund was created in the early stages of the crisis when it was realized that small businesses would need assistance.
“They are the life blood of our economy and we wanted to get these grants into their hands as quickly as possible,” Coulter said.
A total of 7,373 small businesses requested assistance through the grant. Applications were sorted by 12 geographic districts and evaluated by a team of local economic leaders from each district. The maximum award was $10,000, with the average grant ranging from $2,500 to $5,359, depending on the district. About 80 percent of businesses receiving grants have fewer than 10 employees, with roughly 10 percent of recipients having 11-20 employees, and nearly 8 percent with 21-50 employees. Overall, the service industry received the bulk of grants, the highest percent of manufacturing recipients located in Troy’s 11th District.
Coulter said a second round of grants could be approved by the Oakland County Commission as early as this week. Those who applied for the first round of grants won’t need to re-apply. Those applying must have 50 or fewer employees; need working capital to support payroll, rent, mortgage, utility expenses or related costs that occur in the ordinary course of business; and the company must demonstrate income loss as a result of the governor’s executive order or the COVID-19 outbreak. Further, businesses must be outlined in the governor’s first or subsequent order.
Oakland County Commissioner Helaine Zack (D-Ferndale, Hazel Park, Huntington Woods, Pleasant Ridge, Royal Oak Twp.) commended Coulter’s response to the crisis, as well as the process for determining the grants. The process, she said, allowed for each district to have input on where money would be awarded.
“The state was very specific that they wanted us to get assistance to businesses, fast. There was specific and clear guidelines, and then some options. It was all data driven, which I love,” Zack said. “Here in my district, we were given about $114,000 to distribute in our five communities, so we looked at the data and decided to divide it up proportionately, so it would be even to each community.”
Zack said representatives from each community’s downtown development association, business chamber and economic development department were included. They then looked at weighted criteria, such as when each business started and how much that would factor, as well as whether the business helps meet the community’s development plan, whether its a unique destination and other factors.
“Once we had all that, the Oakland County staff fed it through a computer program with all the businesses that applied in our district, and it produced a list based on how they measured the criteria. It was very systematic. “We also discussed the amount — we opted to give more smaller grants of $2,500. We figured that may be a month’s rent or something. We are looking at keeping them going for another month.
Both Coulter and Oakland County Board of Commissioners Chairman David Woodward indicated a second round of funding could come this week. Zack, who said she supported another round of grants, said Monday that plans weren’t yet introduced.
For some business owners, the money can’t come soon enough.
Mary Liz Curtin, co-owner of Leon & Lulu and Three Cats Cafe, in Clawson, said most employees have had to been laid off, with major changes in business operations to allow for a skeleton crew of folks for delivery orders.
“Matt Prentice, our chef, has put together a fabulous program of meals to pick up or have delivered. The meals are designed to reheat well and last about five days. It’s a short menu, and meals are under $14,” she said. “That has kept three chefs and two front-of-house employees to stay on.”
Curtin said operations at Leon & Lulu are continuing online, with support coming from local customers, as well as new ones.
“We are reduced to shipping and pickup,” Curtin said. “We’ve never had an e-commerce website, but it has performed well, and I’m surprised that we are selling all over the country. Of course, our idea of what a ‘good day’ is has changed rather dramatically.”
Others, such as Keith Howarth, owner of Noir Leather, in Royal Oak, paint a more dire outlook. The shop, which has been an icon in the city for nearly two decades, is closed and has no online presence. To help, Howarth started a “Go Fund Me,” page, entitled, “Save Noir Leather due to COVID-19 TemporaryShutdown.
“Many part-time employees can’t collect unemployment benefits, for they haven’t worked hours necessary to collect. The bills keep coming: rent, electricity, gas, water, insurance, plus state and federal taxes,” Howarth wrote on the page. “Noir will dedicate 40 percent of the proceeds to the Noir employees and 60 percent to work expenses. All to keep Noir afloat.”
Howarth said the fixed cost to operate Noir Leather for one month is $20,000, in addition to inventory costs, bringing the total to about $36,000. His goal on the page is to raise $9,098.
Even for businesses able to keep some limited operation going during the COVID-19 outbreak, there is uncertainty on what a return to normal may look like.
Jason Gittinger, founder of The Detroit School of Rock, in Royal Oak, said music teachers have converted private lessons to virtual lessons, but all group activities have been suspended for the time being. He said the grant will help keep the lights on for the time being.
“The grant is very helpful to keep paying the bills, not that we are making any headway during this time,” Gittinger said. “The big question mark is what happens after? Those are big question marks in everyone’s mind.”
In addition to running the music school, Gittinger chairs Royal Oak’s Commission for the Arts, which heads up the city’s Summer Concert Series, as well as the city’s Public Piano Project, both which have been cancelled this year.
“Music and entertainment was some of the first step to go, and it will be the last to come back,” he said. “It’s not just the little guys at the bottom, but every major act in the world, from Beyonce to the neighborhood bar that hosts music. They are all closed for business.”
The recipients of the grants represent a variety of business types and a variety of locations, like Ernie’s Market in Oak Park, Pajoma Travel in Farmington Hills, Dixie Tattoo in Waterford, Funky Monkey Toys in Oxford, Hello Fancy Boutique in Rochester, Gazette Media Group, Explore Yoga in Troy, and hundreds more.
In addition to the first round of grants, about $700,000 in funds were made available for businesses that alter their manufacturing operations to assist in the COVID-19 outbreak response.
Vaughn Custom Sports, in Oxford, has changed production from hockey equipment to produce high-quality protective gowns and caps with the help of a $50,000 grant. Detroit Sewn, in Pontiac, received $25,000 to change production from T-shirts and clothing to cotton fabric medical face masks.
On Monday, April 27, Coulter announced the formation of the county’s COVID-19 Economic Recovery Task Force, which will meet regularly, starting on Tuesday, April 28. The board will provide Coulter, the Board of Commissioners and the Department of Economic Development and Community Affairs with recommendations the county can use as it plans for emergence from the pandemic. The task force will focus on stabilization and recovery strategies to accelerate and sustain an economic rebound for after the shutdown.
The task force leadership team consists of Alan Kiriluck, owner of Troy-based KIRCO; Pete Provenzano, chancellor of Oakland Community College; Shannon Striebich, president of St. Joseph Mercy Oakland Hospital; and Barbara Whittaker, president of BW Limited.
Businesses that received first-round awards from the Small Business Stabilization Fund include: