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$200,000 in grants distributed to 63 small businesses

City grants in response to COVID-19 crisis administered by the Cedar Park Chamber of Commerce

Post Date:04/09/2020 8:45 pm

UPDATE 4/23/20:  

The City of Cedar Park’s Office of Economic Development, with the Cedar Park Chamber of Commerce, reported to the Cedar Park City Council at its April 24 meeting that it has issued 63 grants totaling $200,000 to small businesses in Cedar Park.  The grants are part of the City’s Small Business Assistance Program that City Council authorized at its April 9 City Council Meeting, in response to the COVID-19 pandemic (“Program”).  

Mayor Corbin Van Arsdale said, “We are excited to have been able to help our small businesses through this crisis.  Many of them are struggling, and the grants help supplement some the Federal, State and other assistance they’ve applied for.  We are grateful for all that our small businesses have done and are continuing to do for our community.  This is a tough time, and they are doing a tremendous job of weathering this storm.  We are glad to help them through it.”    

The Program, funded by Economic Development (Type 4A) sales tax funds, was designed to provide small businesses located within the City of Cedar Park City limits financial assistance in response to the COVID-19 pandemic (“Program”).  Under the Program, eligible businesses could apply for grants of up to $5,000 and zero percent-interest loans of up to $10,000.  

The Program was administered by the Cedar Park Chamber of Commerce.  A committee comprised of Cedar Park Director of Economic Development Ben White, Economic Development Corporation (Type 4A) President Eric Boyce and Cedar Park Chamber of Commerce President and CEO Tony Moline reviewed 72 applications.  The committee decided maximize funding to the businesses – issuing no loans and instead awarding grants to 63 qualifying small businesses.  The grants ranged from $1,000 to $5,000 – with the majority of each grant over $3,000.  The grants exhaust the Program’s authorized $200,000 Council-approved budget.

Chamber President and CEO Tony Moline said, “Awarding grants was the way for us to assist all of the qualifying businesses, so that they could focus on what’s most important: staying in business and rebounding from the economic setback caused by this pandemic.” 

The applicants had to meet the following criteria:

• Must be located within the corporate limits of Cedar Park
• Must not be a home-based business or sole proprietor, and cannot be a non-profit organization
• Must have been in business for at least 12 months 
• Must employ fewer than 25 full-time or full-time equivalent employees 
• Has endured a 25 percent or greater reduction in sales after COVID-19 pandemic
• Has applied for a Small Business Administration (“SBA”) loan or other type of loan from a certified financial institution 

City Council adopted the resolution, as passed by the Economic Development Corporation Type 4A Board, with an added prohibition of awarding Program Funds to any Councilmembers, Type A Board members, Chamber Board members, Chamber staff and Program Committee members, and any of their family members, as defined by Texas Local Government Code Chapter 176.  

UPDATE 4/16/20, 5 p.m.: The application window has closed due to an overwhelming response.

4/9/20:
The Cedar Park City Council adopted a Resolution authorizing a program to provide small businesses located within the City of Cedar Park City limits financial assistance in response to the COVID-19 pandemic (“Program”).  City Council adopted the resolution, as passed by the Economic Development Corporation Type 4A Board, with an added prohibition of awarding Program Funds to any Councilmembers, Type A Board members, Chamber Board members, Chamber staff and Program Committee members, and any of their family members, as defined by Texas Local Government Code Chapter 176.  The Resolution authorizes an agreement in a total amount of $200,000.  It is funded by Economic Development (Type 4A) sales tax funds.  The Cedar Park Chamber of Commerce will administer the Program, providing up to $10,000 in financial assistance for each qualifying Cedar Park small business. The Program will provide a total amount up to $200,000 for those eligible Cedar Park businesses.

Mayor Corbin Van Arsdale said, “Our small businesses here in Cedar Park have been doing a tremendous job during this tough time.  Small business and the entrepreneurial spirit are the lifeblood of Cedar Park.  They represent the very best of who we are as a community.  During these past few weeks, we’ve seen many of these business owners rise to the occasion – not only helping one another stay afloat, but providing essential services to our community.  We couldn’t get through this without them.  We are excited to be able to help these small businesses, for all that they have done for our community.”    

Under the Program, a qualifying business could receive a grant of up to $5,000, or a loan of up to $10,000 that can be repaid over a 24-month period at a zero percent interest rate.  Prior to receiving assistance, each Cedar Park business applicant must first demonstrate that it is in need of such funds and meet the below minimum qualifications: 

  • Must be located within the corporate limits of Cedar Park
  • Must not be a home-based business or sole proprietor, and cannot be a non-profit organization
  • Must have been in business for at least 12 months
  • Must employ fewer than 25 full-time or full-time equivalent employees
  • Has endured a 25 percent or greater reduction in sales after COVID-19 pandemic
  • Has applied for a Small Business Administration (“SBA”) loan or other type of loan from a certified financial institution

Tony Moline, President and CEO of the Cedar Park Chamber of Commerce, said, “We are proud to join forces with the City to offer this Small Business Assistance Program, in an effort to help our small businesses weather this unprecedented challenge ad provide a resource to help them return to their normal operations.”

Find the application and more details at https://www.cedarparkchamber.org/small-business-assistance-program.