Austin Fund Aims To Help Legacy Businesses Survive Coronavirus

AUSTIN, TX — The city has created a $5 million grant program aimed at financially assisting legacy businesses — firms that have been in operation at least 20 years — amid economic downturn spurred by the coronavirus pandemic, officials announced Wednesday.

Dubbed the Austin Legacy Business Relief Grant, the fund offers financial assistance to eligible local businesses experiencing reduced operations. The grant will provide $20,000 in emergency funding, with an opportunity for enhanced funding up to $140,000 to cover operating expenses, officials explained.

“Retaining local jobs through Austin’s legacy restaurants, bars, and creative spaces is central to our economic vitality,” Veronica Briseño, Austin’s Chief Economic Recovery Officer, said in a prepared statement. “Our team is thrilled to be working with PeopleFund and BCL of Texas to provide needed financial support and technical assistance to help sustain many of the businesses that make Austin feel like home until they are able to safely thrive once again."

The Austin City Council established the $15 million Save Austin’s Vital Economic Sectors (SAVES) Fund through Ordinance No. 20201001-052 to support local industries, according to an advisory. Through the SAVES Fund, Austin City Council adopted the final guidelines for the $5 million Austin Legacy Business Relief Grant via Resolution No. 20200103-012. As part of a partnership with the City of Austin, PeopleFund will provide application assistance, process applications, and administer funds, officials said, adding that BCL of Texas will provide one-on-one business coaching and outreach support to strengthen the program.

Application Opens for Phase 1: Tuesday, February 16, at 10 a.m.

Application Closes for Phase 1: Wednesday, March 10, at 5 p.m.

“PeopleFund is excited to be able to support the city and our business community by administering this program," said Gustavo Lasala, PeopleFund President/CEO. "PeopleFund has supported the business community in Austin since 1994, and this program aligns closely with our organization’s mission. We look forward to moving quickly to launch this program.”

Added Rosa Rios Valdez, president & CEO of BCL of Texas: “BCL of Texas is an organization with a wealth of experience in helping Austin’s businesses achieve their goals. We are thrilled to have the opportunity to support the Austin Legacy Business Relief Grant program with one-on-one business coaching and outreach capacity.

The Austin Legacy Business Relief Grant will be distributed in two phases. Eligible legacy businesses are required to have been in operation in a City of Austin City Council District for at least 20 years; must meet the city’s definition of a legacy business; and must have reduced operations since March 2020. Applicants must also meet or exceed the City’s COVID-19 safety guidelines, which can be found online at www.austintexas.gov/covid19.

Phase 1: Emergency Funding

• Eligible applicants will receive a $20,000 grant, which PeopleFund will distribute in March 2021. Should program demand exceed available funding in the first phase, a scoring matrix will be used to select program participants.
• Phase 1 participants will be required to complete a Technical Assistance Evaluation and will have access to a series of business coaching and one-on-one technical assistance related to sustaining and growing their business.

Phase 2: Enhanced Funding

• Only Phase 1 grant recipients are eligible to apply for additional grant funding in Phase 2.
• Eligible applicants can apply for up to $140,000 (this does not include funds received from the first phase). Should program demand exceed available funding for Phase 2, award determinations will be made based on outcomes of a scoring matrix and technical assistance evaluation.
• Phase 1 grant recipients must complete required technical assistance before applying for Phase 2.
• The funding amount will be determined based on documented operational costs and eligible expenses. Phase 2 funding will be distributed in monthly payments with a maximum of $40,000 per month.

Informational Webinars for Phase 1

English - Tuesday, Feb. 16, from 2 p.m. to 3 p.m.
Register for the City of Austin Legacy Business Relief Grant Informational Webinar in English with PeopleFund

Spanish - Tuesday, Feb. 16, from 3 p.m. to 4 p.m.
Register for the City of Austin Legacy Business Relief Grant Informational Webinar in Spanish with PeopleFund

How to Apply

Application and eligibility guidelines are available online at www.ATXrecovers.com.

For eligibility questions and application assistance, contact PeopleFund by email at legacybusinessrelief@peoplefund.org or by phone at 512-222-1009.