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After rapidly running out of money, Marion County throws another lifeline to small businesses

A closed sign in Engelberg Antiks in downtown Salem on Thursday, March 19. (Saphara Harrell/Salem Reporter)

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At noon on April 9, Willamette Workforce Partnership began accepting applications for a new small business grant program. By 12:01 p.m., the first-come, first-serve program had run out of money. 

“We didn’t even get to 12:02,” said Kim Parker-Llerenas, the executive director of the government-funded workforce development nonprofit. 

In response to the overwhelming demand, the Marion County Board of Commissioners has made an additional $800,000 available for the grant program on Wednesday morning. 

On April 1, the board approved using $200,000 in lottery funds for grants of up to $5,000 to local small businesses. The grants were intended to help small businesses with five employees or fewer that might not have established relationships with banks or other lenders. They money could be used for rent, utilities or supplemental income.  

The county worked with Willamette Workforce Partnership to distribute the grants. The partnership received about 1,000 requests within the 24-hour period that depleted the initial funding. 

“I don’t think any of us anticipated this kind of response,” said Parker-Llerenas. 

She said that the partnership is currently sending out letters and checks to the 102 businesses that qualified. The amount each business will receive averages between $2,000 and $5,000. 

Since the outbreak of COVID-19 state orders have shut businesses that require close contact and restricted the operations of others.  

Parker-Llerenas that many applicants were businesses that require close contact with customers such hairstylists, nail technicians and massage therapists.  

While the partnership handled the initial round of grants, she said that the county is taking over the program. 

The new money will be used for applications left over from the first round and will be funded on a rolling basis. Under the new round of funding, businesses that submitted applications and meet eligibility requirements will receive a $1,000 grant to stay afloat while waiting for federal relief funding or other business resources, according to a county press release. The county’s website states that the application window for grants is closed.  

“Our economic development staff will continue to provide resources and technical assistance to businesses as they weather this storm,” Commissioner Colm Willis, board chair, said in a statement. “Small businesses are the heart of our economy here in Marion County and we are proud to stand with them during this crisis.”

Update: This article has been updated to clarify that the amount of money businesses will receive under the grant.

Contact reporter Jake Thomas at 503-575-1251 or [email protected] or @jakethomas2009.

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