As local businesses continue to struggle with the challenges surrounding COVID-19, the Bee Cave Economic Development Corp. has responded by making upgrades to its Bee Cave Business Support Program.
The program increased the initial allowable grant amount per business from $10,000 to $15,000 and is now raising the maximum interest subsidy to $50,000 and adding eligibility for businesses that participated in the federal Paycheck Protection Program, according to Steve Albert, president of the EDC.
City Council set aside $1.5 million for the business assistance plan, leaving a remaining $1.35 million still able to be allocated after a $150,000 Phase 1 allotment last month. According to the city's website, plans for a third round of allocations could commence in August if there is still money left in the coffers after an upcoming second round is complete at the end of July.
"Over time we expect more businesses will take advantage of the loan subsidy and make needed renovations or other capital investments," Albert said in an email statement. "When we introduced the Business Support Program, I stated it could be easily amended or extended. With changes to the Paycheck Protection Program (PPP), the Board felt it made sense to open our program to PPP recipients in Phase 2."
Since restrictions brought about by the pandemic began, Bee Cave officials have been working with other city leaders to implement initiatives designed to slow the financial devastation brought upon the city's business community.
Another example of the city's efforts to help small businesses is the Small Business Assistance Center, which came to fruition as a result of a proposal from the Bee Cave Chamber of Commerce. The SBAC, which is helmed by Bee Cave Public Library staff, went live April 9 and is serving as a resource for business owners throughout the city to help them navigate the federal loan request process.
Barbara Hathaway, the director of the Bee Cave Public Library, runs the SBAC program, which Bee Cave City Council officially approved during its April 14 meeting, and also has a hand in the management of the Bee Cave Business Support Program.
Hathaway said so far the plan's Phase 1 allocations doled out a total of $150,000 to 10 businesses at $15,000 each, and several dozen other businesses have applied for funding as part of Phase 2.
She added the deadline to apply for the next round of funding is July 17, and the payout dates for approved businesses would be between July 27-31.
"Helping to make businesses safe places for employees and customers alike is our No. 1 priority," Albert said. "While grants and loans can be used for a variety of business expenses, our hope is business owners will utilize these funds for needed personal protective equipment and remodeling."
Albert said most of the program's initial recipients mentioned rent as their primary use of funds, and about half said they used funds for personal protective equipment.
"Thankfully, the Bee Cave EDC can make these grants, he said. "We are redirecting funds that would have gone towards infrastructure improvements, including trails and parks, into our local businesses, due to COVID-19."
For more information on the Bee Cave Business Support Program, click here.
