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BY PAUL MARYNIAK AFN Executive Editor
T
he COVID-19 pandemic could wipe out a quarter of Phoenix’s small businesses and cost the city up to $200 million in General Fund and other revenue. That stark picture of the virus’ impact on the city emerged from two Phoenix City Council hearings last week in which members began turning their attention to how to spend the $293 million the city received in federal pandemic-relief funds. In its first decision to spend some of that money, Council on April 30 unanimously ap-
proved $5 million to provide $10,000 grants to hundreds of small businesses that had qualified for pandemic relief grants in that amount from a $2 million Phoenix IDA program that ran out of cash. According to 2019 U.S. Census estimates, there are just over 124,000 businesses in Phoenix and 95 percent have fewer than 50 employees. Earlier in the week, Phoenix Economic Development Director Christine Mackay said 550 small businesses had applied for the grants, 260 qualified and 200 received them. Council members Sal DiCiccio and Carlos Garcia said the additional $5 million infusion
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will help more businesses, but stressed they wanted the money to go to small businesses and not large corporations. But Council voted down a proposal to provide $10 million in rent and utility assistance for businesses and residents after Mayor Kate Gallego said she wanted a more comprehensive look at pandemic-related needs and the cost of meeting some of them before she would support additional spending. Gallego won support from council members Thelda Williams, Debra Stark, Jim Waring and Michael Nowakowski to defeat the rental-
see VIRUS page 12
Local inventor forms new group to make protective gowns
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Chris Jones and CK’s Grill co-owner Kendra Pieratt reopened the Ahwatukee restaurant for takeout orders last Friday. Restaurants throughout Arizona could open next week for dining in, but the experience likely will be unusual for diners. For details, see page 31. (Pablo Robles/AFN Staff Photographer)
hwatukee and other businesses are pitching in to help meet the needs of healthcare workers working at the frontlines of this global pandemic. A grassroots group of businesses have organized as the Pandemic Response Equipment Manufacturing, or PREM, Group to manufacture isolation gowns to donate to local hospitals. The PREM Group was started by Ahwatukee entrepreneur Steve Abbit and Delta Technology CEO Lyle Rusanowski but has grown to include Honor Health, Arizona State University, FiberCORR, Moore Tool & Die, The ALC Group,
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see PREM page 18