State legislature agrees to allocate $300 million to small businesses impacted by COVID-19

COLUMBUS, Miss. (WCBI)- Financial help could potentially be on the way for small businesses who were impacted by COVID-19.

State lawmakers voted to allocate $300 million to businesses who were affected or forced to temporarily close.

The funding will come from the $1.25 billion the state received through the CARES Act.

The grant money is for businesses that existed before March first and have no more than 50 employees, like Jordan’s Barber and Style Shop in Columbus.

The shop was forced to close its doors back in March.

Owner Bobby Jordan said the grant money is much needed.

“I’m glad that they are going to be able to do something for us because it’s been hard, especially since this is our only income,” said Jordan. “Anything that we can get will help us out greatly.”

In the proposed bill, $60 million will be for a one time direct payment of $2,000 for businesses that were forced to be closed by government orders.

They would not have to apply for those funds.

The other $240 million will be for places that suffered unexpected expenses due to the coronavirus.

Businesses would have to apply for this pot of money.

“There is a $2,000 direct payment that will be administered through the Department of Revenue, then there is an application process up to $25,000 that small businesses can apply for through MDA (Mississippi Development Authority),” said Kabir Karriem, District 41 State Representative.

Karriem was one of the lawmakers who voted in favor of the bill.

He also works at a small business in Columbus and said he knows the importance of allocating this money to help small businesses get back on their feet.

“African-Americans have been disproportionately affected by this pandemic, particularly their small businesses,” Karriem expressed. “Where I voted for the bill, I was hoping that there was going to be a little bit more in there for minorities of the state, but you know, it’s a start. I’m glad small businesses are going to get some help.”

The funds can be used to cover anything related to the pandemic.

Jordan said he plans to use money to pay for cleaning and health supplies to help him run his shop in a safe manner going forward.

“We’ve been hearing about masks and gloves and other materials, disposable capes, using paper towels, disinfectant, that’s going to be an on-going thing, so that’s going to cost us so this money will enable us to buy those items,” said Jordan.

The bill passed the House and Senate after a lengthy debate.

It now awaits the governor’s signature before any funds can be given out and before the application process can begin.

If signed by the governor, businesses would not have to repay the grant money.