MEMPHIS, Tenn. — A dozen more downtown Memphis businesses will be considered for forgivable loan assistance Friday.
Applications for a new forgivable loan program is shedding a light on how businesses located in downtown Memphis are struggling because of the COVID-19 shutdown.
The Center City Development Corporation will consider 12 businesses for the Downtown Business Continuity Forgivable Loans program during its Friday morning meeting. Earlier this week, eight other businesses were approved.
The forgivable loan program through the Downtown Memphis Commission has $200,000 to divvy up between struggling businesses. The most a business could receive is $20,000 but more than 50 businesses have applied and most are asking for a lot less so the wealth can be distributed to more of them.
"We've really tried to take a look at what they need to get them through the next couple months and businesses have been willing to take less if it can get them through to allow for more to receive funding," Jennifer Oswalt, of the Downtown Memphis Commission, said.
The first eight businesses to be approved were: Alcenia's ($5,000), Premier Flowers ($5,000), Book Juggler ($2,600), The Broom Closet ($5,000), Rachel's Salon ($7,500), The Brass Door ($7,500), Wrapzody Deli ($7,500) and McEwen's ($15,000).
The businesses up for consideration on Friday are: The Peanut Shoppe, Qahwa Coffee Bar, Chef Tam's Underground Cafe, Pontotoc, Bluff City Coffee, Havana Mix Cigar Emporium, Max's Sports Bar, WKND Hang Suite, A Schwab's, Sam's Main Street Eatery Stock & Belle and Rizzo's.
The applications from the businesses show how much they're struggling during the shutdown. Some have had to close completely. Others that are still trying to operate in a limited way reported revenue losses as high as 80-90%.
"Downtown is hard for many reasons. Number one, we don't have our workforce population in the office buildings so that's a big piece," Oswalt said. "We were on pace to really add a lot of residents in downtown over the next couple of years but those aren't built yet so we don't have as strong of a population as you might have in some other areas."
The owner of Premier Flowers, Colby Midgett, reports her revenue is down 80%. For a florist like Midgett, it's supposed to be a peak season with events and weddings gearing up, prom and Mother's Day fast approaching.
"It's like a roller coaster. Initially I was very sad and angry and frustrated and did not know what was going to happen,"Midgett said. "With the assistance that we're getting, it does take a lot of stress off of you."
Midgett plans to put the money toward rent and merchandising, according to the application.
"With business down and funds getting low, you're running out. You're questioning what should you do? You can't just sit around and wait so for me I had to take some kind of action," she said.
If the business stays open for two years, the loan will not have to be paid back. Oswalt says, the downtown commission plans to stay connected with the businesses and to continue to provide resources during a recovery phase.
The $200,000 fund was created from fees the commission has collected from development projects invested into the downtown.
Outside of downtown, the EDGE board has approved $1 million to go towards an emergency fund for hurting businesses located in undeserved areas of Memphis.