Small Businesses Voice Concerns About City of Providence’s New COVID Relief Program
Wednesday, October 20, 2021
Last week, the City of Providence announced its new “COVID-19 Small Business Relief Program.”
According to city officials — including Mayor Jorge Elorza, Providence City Council President John Igliozzi, and Council Finance Chair Jo-Ann Ryan — the program is designed to “provide microgrants to businesses throughout the City of Providence and support economic recovery from the effects of the COVID-19 pandemic.”
The COVID-19 Small Business Grant Program will offer grants of $2,500 to over 2,700 qualified businesses using nearly $7 million of federal American Rescue Plan relief dollars, according to the city.
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTThe issue that some small businesses have raised however is that according to the city’s release, in order for a business to be eligible, it would have to have received a City tangible tax bill “in the range of $558.00 [to] $55,800.00.”
“I think you’re either change the name [of the program] and don’t have ‘small business’ or get rid of tangible tax line. If you have a $55,000 tangible tax bill, what is a $2,500 grant going to do for you?” said Jennifer Ortiz, who has been a salon owner in Providence for seventeen years.
“When all my salon equipment was at full value, I still didn’t have a $500 tangible tax,” she said. “I don’t know any of our small businesses that reach a few hundred dollars [for a tangible tax bill]."
Mark Deion with the Rhode Island Small Business Coalition expressed similar concerns.
“Assets should not be used as a determining factor for a grant program — it’s just ridiculous,” he said. “Most of the grant programs are based on a decrease in revenues — or loss of profits — or loss of employees — or loss of staff.”
“The concern that I have is that most small businesses or sole proprietors won’t have assets of $5,000 [for a tangible tax bill of $558],” said Ortiz. “Most small businesses won’t have assets of $5,000. And you’ve just eliminated most sole proprietors.”
According to sources in City Hall, officials will be reviewing the tangible tax metrics as contained in the press release.
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