The City of Dallas has launched a Small Business Continuity Fund and applications are open as of Monday, May 4, 2020.

Here are the basics:

  • $5M is available, $2.5M for grants ($1.25M available LMI tracts and $1.25M city-wide) and $2.5M for loans
  • Grant program: $10,000 maximum award, depends on payroll
  • Loan program: $50,000 maximum award, depends on payroll and other operating expenses, repayment over 5 years

Eligibility

Eligible business types:

  • Low-to-moderate income (LMI) micro-business owners (those with 5 or fewer employees, including themselves) or 
  • Small businesses (fewer than 50 employees) that employ (or previously employed and would rehire) at least 51% LMI workers.

Other requirements include:

  • Physical office location in the City of Dallas (does not matter where the owners live)
  • Have been open and continuously operating in the City of Dallas since September 1, 2019
  • Can demonstrate a 25% or greater financial loss related to the emergency regulations

Funding Process

  • Applications will be accepted from May 4 to May 11, 2020
  • Eligible applications will be placed in a lottery
    • Separate lotteries for loan and grant funding 
    • There will be two grant funding lotteries: one for the LMI areas and one city-wide
  • Lottery will produce list of businesses selected for funding
  • Third party administrator will work with businesses to verify financial information, underwrite application, and if criteria are met, provide funding
  • Funding estimated to be available in June

Documentation Needed

  • W-9
  • Documents supporting number of employees and payroll (like an IRS 941 form)
  • Documentation demonstrating a 25% loss or greater of income since March 2020
  • Registration with Secretary of State
  • Profit and loss statement from previous year
  • Tax statements from previous year including sales and use tax

For more information, visit dallasecodev.org or email [email protected].

FAQs Answered

  • You can only apply for loan or grant, not both
  • Have to demonstrate loss of business from March 2019 to March 2020
  • They will take the average of your January, February, and March 2020 payrolls
  • This is strictly only for businesses headquartered in City of Dallas
  • If there are multiple owners, they will take the information of the primary business owner
  • Need to have all documents before you apply
  • Tax returns for business are required, personal tax returns also may be required for the loans
  • City of Dallas will check credit scores for loans
  • If you haven't heard back from SBA loans, you can still apply for these
  • After you submit the application online, you will receive confirmation 24-48 hours later