SEATTLE — The city of Seattle had $2.5 million to help stabilize small businesses that are hurting in the wake of the coronavirus crisis.
But the need for the $10,000 grants was so huge, the city of Seattle had to use a lottery system to help narrow it down to the lucky few.
City officials say there were 9,000 applicants for small business stabilization money, which was provided to the city by a federal block grant. Only 250 businesses received the grant of $10,000.
Recipients included hair salons, fitness centers, child care providers and small restaurants.
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Dana Neely, of Girls Gone BBQ in West Seattle, was one of the recipients. She's been in business for a decade, selling her "Arkansas-style hickory smoked barbecue" as a caterer and stand at the West Seattle farmers market. Her last event was a wedding on Feb. 29, before the health crisis cut her revenue completely overnight.
"There's been nothing I've had but cancellations," she told KING 5.
The $2.5 million dollar Small Business Stabilization Fund had the backing of the city's mayor and council.
"We thought that they would do but we try to do this program really is a stopgap. None of us pretend to believe that this is going to get all the businesses through the duration of the shutdown," said Mayor Jenny Durkan, in an interview with KING 5. "But it is a lifeline that will give them the ability to keep going and perhaps for those business owners themselves to continue with enough resiliency to start that business back up when we're able to open businesses."
The Office of Economic Development selected businesses that had less than five impacted employees, and also based on demographics. About 80% of the businesses are minority owned, or in areas with "high displacement" possibility.
But so many applicants fell within those categories, that city officials used a lottery in some areas to select grant recipients.
Lenore Sharp owns Full Tilt Ice Cream in Columbia City.
"It's a big deal for us," she told KING5 by email. "We were on the verge of closing up shop for the duration before the grant came through. The money allowed us to make a different choice: to stay open in a limited capacity and continue to [employ] half of our staff."
The money will pay for Full Tilt's daily operating expenses like rent, payroll and supplies through the first week of May,
Jose Perez, of Villa Escondida restaurant in Belltown, says he has five employees, including himself, and the money will cover partial employee wages and buy him some time to think about a future strategy.
Neely says the money has likely given her two-and-a-half months to sort everything out.
"I'm able to pay my rent and my business expenses and the grant money has it's made it so that you know Girls Gone Barbecue will be ready to open as soon as the governor gives to go ahead."
"I mean, this grant has literally given me hope to keep my business going. Because before that, had nothing," she said. "I'm you know, one woman show here."
For a full list of businesses that received the $10,000 stabilization grant, go to the City of Seattle's website.