LYNN — The city of Lynn has been awarded an additional $1.2 million in federal coronavirus relief funding, which will be used to boost struggling businesses and nonprofits.
Awarded through the U.S. Department of Housing and Urban Development (HUD), the funds have been allocated to the city through the Coronavirus Aid, Relief, and Economic Security (CARES) Act, which was signed into law last March.
The funds will be administered by the city’s Department of Community Development (DCD) and the Economic Development & Industrial Corporation of Lynn (EDIC/Lynn), which will then distribute grants ranging from $2,000 to $10,000 to local small businesses and grant amounts depending on need to nonprofits.
All funding is subject to HUD regulations, which includes prioritizing funds for residents who have low- and moderate-income levels, and businesses that retain and create low- to moderate-income jobs, according to Mayor Thomas M. McGee’s office.
“This additional CARES Act funding is long overdue and desperately needed for the local businesses and nonprofits, which have been adversely affected by the COVID-19 pandemic,” said McGee. “This has been an incredibly challenging year for so many within our community who have lost their jobs or businesses.
“We’ll continue to work with and advocate for additional resources for our local businesses through our state and federal partners as we move forward in this pandemic,” he said.
The city’s proposed breakdown of the $1.2 million includes $812,525 for small business grants, $220,000 for reimbursement of small business grants, and $180,000 for nonprofits, according to a legal ad placed by the city.
“It’s much-needed in the business community,” said James Cowdell, EDIC/Lynn executive director. “We will be able to help over a hundred businesses with those grant monies.”
With grants ranging from $2,000 to $10,000, how much a business receives will be based on a city scoring system, which will measure whether applicants have laid off any employees, have had to shut down, or if businesses are female- or minority-owned, Cowdell said.
“These grants are targeting small businesses,” said Cowdell. “The small businesses have been decimated by the coronavirus, and these grant funds, in many cases, are the difference between a business going out of business or staying afloat.”
EDIC/Lynn and the CDC will be seeking grant applications from Lynn businesses and nonprofits impacted by the COVID-19 pandemic.
Funds for businesses will be used to keep workers employed, for property lease and mortgage payments, or other eligible costs that will assist in keeping businesses afloat during the pandemic, according to McGee’s office.
Funds for nonprofits can be used to pay for services, such as job training, providing testing, increasing the availability of health services, providing equipment, supplies, or materials, or delivering meals to quarantined individuals who need to maintain social distancing due to medical vulnerabilities, McGee’s office said.
Grant amounts awarded to nonprofits will vary depending on need and how many apply, said James Marsh, community development director, noting that grants ranged from $5,000 to $50,000 during a previous round of COVID-relief funding this past fall.
“Nonprofit entities will need to demonstrate they are utilizing the funding to help fight the pandemic,” said Marsh. “We will make a final determination based on the funding available and demonstrated need.”
Lynn has now received more than $2.6 million in direct Community Development Block Grant funds and more than $4.7 million in Emergency Solutions Grant funding through the CARES Act, McGee’s office said.
More than a hundred businesses were supported through the $1 million in CDBG funds that were distributed through the city’s last round of CARES Act funding, Cowdell said.
The funding for businesses will be available through an online grant application posted at www.ediclynn.org and the city of Lynn’s COVID-19 Resources page. Nonprofit entities interested in applying for funds should visit the community development website at www.cityoflynnoecd.net or call 781-586-6770. All awards will be made based on need and adherence to HUD regulations.
