City’s SBERP Grant Allocates $35 Million for Small Businesses

To see the Houston Small Business Economic Relief Program Impact Report, go to houstontx.gov/OBO.

By Pearl K. Cajoles

In response to the COVID-19 pandemic, the City of Houston took action to assist small businesses economically and financially by creating the Small Business Economic Relief Program (SBERP). The program, developed by the Office of Business Opportunity, allocated $35 million of federal CARES Act dollars to provide grant dollars to eligible small businesses and chambers of commerce operating within the limits of the City.

The SBERP helped 1,072 small businesses sustain their operations with the average grant amount totaling $30,000. Recipients of the grant included microbusinesses with five or less employees, as well as businesses that were not able to obtain any other type of financial assistance from other economic relief programs such as U.S. Small Business Administration’s Paycheck Protection Program (PPP) funds or its Economic Injury Disaster Loan (EIDL).

The grant was funded with an initial allocation of $15 million of federal CARES Act dollars, which Mayor Sylvester Turner and Houston City Council unanimously approved on July 28. The SBERP application portal was open for two weeks from Aug. 19 - Sept. 4. More than 12,000 businesses applied for grant funds.

Due to the overwhelming number of grant applicants and the continued need for immediate, short-term assistance to small businesses, Mayor Turner and City Council approved additional infusions of funds for the SBERP in 2020 – $5 million in September; $5 million in November; and $10 million in December.

Under the SBERP, the maximum grant amount eligible businesses and chambers of commerce were able to receive was $50,000. Permitted use of grant dollars included such things as payroll, accounts payable, rent, mortgage, personal protective equipment for employees, and marketing strategies, including creating an online presence and other sales alternatives. Businesses were required to be located within the Houston city limits.

To allow equitable distribution of funds and to achieve the goals of the SBERP, grant applications were not selected for processing on a first-come, first-served basis, but rather prioritized based on categories which included, but were not limited to financial need, geography, access to capital challenges, resiliency, and job retention impact.

Grant funds were disbursed in two phases. The first half of the funds were awarded upon grant approval. The second half was awarded after confirmation that the grant recipient successfully completed the required Recovery and Resiliency Technical Assistance component of the program.

This component included assistance in strategic planning, financing, marketing and human resources management. All funds were disbursed to grant recipients by Dec. 30.

Our goal has always been for this program to make the most impact and to reach as many people as possible,

said OBO Director Marsha E. Murray.

Bernard Johnson - The Bridge Imports

“COVID affected my business by causing a drastic slowdown in customer foot traffic. Hence, we were not able to receive the normal level of revenue needed –Bernard Johnson to pay our basic The Bridge Imports business and payroll responsibilities. A few of the ways we used the funds received were to catch up on past due bills, keep workers, and purchase badly needed inventory.”

Jess Hughes - Citizen Pilates

“The SBERP grant gave us a welcomed supplement to our working capital needs for the new year and provided a safety net for the company to continue to employ the majority of our staff and instructors at all locations. Our team’s mental health is at the forefront of all we do. We are striving to change the human capital landscape of Houston’s boutique fitness industry to provide employees with fair and legal compensation. This in turn, affords our team the financial and mental confidence to continue to offer the best fitness experience to our community.”