City Council approves $1.2 million for Birmingham Strong Fund

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The Birmingham City Council — in a special called meeting on Wednesday, March 25 — voted to approve $1.2 million in funding for the Birmingham Strong Fund, an emergency loan program for small businesses in the city impacted by ongoing efforts to slow the spread of COVID-19.

The fund will be administered by the Birmingham Business Resource Center, according to a news release from the Council.

Businesses with under 50 employees will be able to apply for loans up to $25,000, with the average being around $10,000, the release states.

The loans can be used to offset losses, prevent layoffs and sponsor sick leave for employees and will offer zero interest and 180-day repayment terms.

Business owners will be required to complete a needs assessment form at the fund's website.

“Small businesses are the backbone of our city and we're committed to doing everything we can to help them stay afloat during this time of economic uncertainty,” City Council President William Parker said in a statement.

City leaders are also seeking matching funds from the private and civic sectors. 

Josh Carpenter, the city’s director of Innovation & Economic Opportunity, told the Council on March 17 that he was hopeful the private sector would match the city's $1.2 million contribution at least dollar for dollar.

The council voted initially to approve a portion of the funding for Birmingham Strong on March 17 as part of Mayor Randall Woodfin’s approximately $15 million COVID-19 Response Plan.

Woodfin’s plan also includes money to help cover emergency needs for police, fire and public works, as well as funds to help the city cover a projected budget shortfall over the remainder of its fiscal year due to a drop in sales, use and occupational taxes caused by the pandemic.

For more information about the small-business fund, go to bhamstrong.com.

For more COVID-19 information from the city, go to birminghamal.gov/coronavirus.