This story and headline were updated on April 20, 2020, to update time references to this week and the number of applications filed.
More than 4,800 small businesses and nonprofits had applied for emergency grants from Montgomery County’s $20 million Public Health Emergency Grant Program as of Monday morning.
The launch of the applications was delayed by about an hour on Wednesday afternoon as county staff members ran tests on a file upload feature, according to Jerome Fletcher, an assistant chief administrative officer for the county.
He said he expects money will begin to go out to approved applicants starting around the end of this week.
The County Council already is planning to boost the amount of grant money available. The council is scheduled to vote on Tuesday on adding an additional $5 million to the fund.
Although the application system has been flooded, Fletcher said, only a couple of people had problems uploading documents to their application. Some people have needed assistance with submitting information properly, he said.
County employees are reviewing and approving applications on a rolling basis.
The $20 million fund will provide grants of up to $75,000 for businesses and nonprofits with 100 employees or fewer. The grants can be used to cover employee wages and benefits, taxes, debt, rent, or other operating expenses.
Twenty-five percent, or $5 million, will be specifically reserved for restaurants and retail storefronts. The additional $5 million under consideration also would specifically be for restaurants and retail storefronts.
Mini grants of up to $2,500 will be given to for-profit and nonprofit businesses to reimburse technology costs related to having employees telework during the public health emergency.
The applicants must be able to demonstrate a loss of 50% or more of their net revenue for March, among other requirements.
Only 1,000 businesses and nonprofits will receive grants from the fund, without additional money added to it, Fletcher said, adding that people should keep applying. About 50,000 businesses and nonprofits would be eligible to apply, he said.
The 1,000 approved businesses and nonprofits will first receive up to $10,000 in a base grant to get the money out as soon as possible, Fletcher said. After they receive the first amount, their applications will be revisited for potentially more money.
“We have to do the best with what we can and what we have,” Fletcher said. “We should be able to process at least a couple hundred (applications) a day.”
On Wednesday, Fletcher told Bethesda Beat that the program was potentially “doomed to be inundated by tens of thousands of applicants.”
In addition to the $20 million in grants for businesses and nonprofits, the County Council on March 31 also approved $6 million in emergency grants for residents who can’t receive state or federal assistance.
Of the funds, $5 million will be split between the county and nonprofits for distribution: $3.5 million by the county and $1.5 million by the nonprofits. The remaining $1 million will be given to nonprofits for safety-net services for vulnerable residents.
Council Member Gabe Albornoz said at a Friday electronic town hall meeting that the applications are expected to be open this week.
At a press conference on Friday, Gov. Larry Hogan gave updates on the response to the state’s efforts to provide emergency relief money to businesses and nonprofits.
He said that out of $9.3 million in a Layoff Aversion Fund to help avoid job cuts at small businesses, $8 million had been provided.
For two other funds, Hogan gave the number of applications.
A $50 million grant fund for businesses and nonprofits had received more than 20,200 applications. A $75 million loan fund had received more than 9,100 applications. Both funds have stopped taking applications.
Briana Adhikusuma can be reached at briana.adhikusuma@moco360.media.
Managing Editor Andrew Schotz contributed to this story.
***
For other Bethesda Beat coverage of the coronavirus, click here.
To see a timeline of major coronavirus developments in Maryland and Montgomery County, click here.
