City assisting small businesses during pandemic

“We want to help them whether they're bringing 500 jobs or they're a ma and pa shop."

By Jay Skebba / The Blade
Sun, 24 May 2020 14:00:00 GMT

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Toledo doesn't have the economic development staff of a city like Columbus or Cincinnati, but it does know how to maximize its resources and help small businesses before, during, and after a pandemic.

Sandy Spang resigned from city council late last year to take over as commissioner of business services in January. She had little time to adjust before the coronavirus outbreak forced most businesses to shut down or change their approach.

"Everything changed with COVID," Ms. Spang said. "Everyone in the department feels we just need to service businesses however we can. Whether that's reopening or connecting them with relief programs. We're helping them get paperwork. I actually delivered someone's building plans the other day because One Government Center is closed."

The city took multiple steps to assist businesses during the crisis, including a six month deferral granted on Enterprise Development Loans and Brownfield Revolving Fund Loans issued by the city. Over 20 borrowers were notified of the program, which runs through Sept. 30.

The economic development department receives $15,888 in monthly principal and interest payments, and will defer $95,323 in payments over the next six months. Their average monthly payment for businesses receiving these loans is $756, meaning they can preserve about $4,500 in working capital.

The Blarney is one of the establishments benefiting from the deferments.

"It was a big help," owner Ed Beczynski said. "We were able to have a couple employees on for takeout. It really helped with our fixed costs because we still had to pay utilities and with some of the fixed costs, those companies were still charging us."

The city also orchestrated a temporary curbside takeout program for restaurants. Those without designated space for takeout were given temporary cones and signage.

Earlier this month, Mayor Wade Kapszukiewicz announced the Emergency Microenterprise Recovery Grant program for businesses of five or less employees. The city will award 200 $5,000 grants to eligible businesses.

As of Thursday, 195 applications were approved. A lottery will be held if more than 200 apply.

The $1 million comes from the $4.4 million the city received through the CARES Act.

"When we took a step back and said 'How can we best serve the community using these funds?' We did an assessment and looked at what PPP did and some of those other programs," said Brandon Sehlhorst, commissioner of economic development. "We found a whole subsector of small businesses underserved by the current programs, so we created our own program."

Mr. Sehlhorst said his department has six people; Cincinnati's has 30. He said despite the lean numbers, the department knows how to work efficiently to help businesses get positive results.

Sometimes that requires thinking outside the box.

After the state required Lott Industries to split from the Lucas County Board of Developmental Disabilities, Lott had unused space. The city connected them with three tenants — Hyggelight, Latin Cravings Factory, and Food for Thought. The move helped three businesses find a home, but also provided opportunities for developmentally disabled clients working at Lott.

Saundra Irvine, a member of Food for Thought's board of directors, said Ms. Spang was instrumental in helping the food pantry.

"Our warehouse was crammed, it was down an alley," Ms. Irvine said. "I called Sandy because we struck out with realtors finding space we could afford. I'm a pretty resourceful businesswoman, but when I get stuck, I can call Sandy and I'll always get something out of it. She can always make a connection and make it make sense."

Ms. Spang said the department started conducting pre-development meetings to guide businesses through the inspection process. The city brings everyone to the table — remotely for the time being — to have discussions on fire code, zoning, and other issues that may need to be sorted out.

The meetings also allow business owners to put names to faces of people they can rely on down the road. Ms. Spang said it's important to help them navigate what can be a complicated process, and make important connections.

"We want to help them whether they're bringing 500 jobs or they're a ma and pa shop," she said. "And connecting them to partners in the community that can help. The city is the first call they make usually, but we often make referrals to the Small Business Development Center in the chamber, the Minority Business Assistance Center, or Jumpstart."

Mr. Beczynski said the city has good rapport with small businesses. He said he's gotten along with every administration and they're receptive to ideas such as shutting down a portion of North Huron Street for the annual St. Patrick's Day tent.

Even when we expanded and worked with economic development on different projects, it's been good," he said. "For the most part, they definitely are there to support us. Lately we've been working with them to put tables on the street this summer since part of the state's recommendations is ventilation. There's no better ventilation than being outside."

Ms. Spang said many businesses are getting creative during the coronavirus pandemic, such as Tony Packo's downtown using their space to show a drive-in movie.

"To open your own business takes creativity and tenacity, so they're relying on those same characteristics to find new ways to move forward," she said. "Our policy is how can we get to yes. If someone has an idea, we want to get to yes."

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