4.13.2020 Council introduces $5 million in additional fund for local restaurants and retail shops

On Tuesday, the Montgomery County Council will introduce a $5 million special appropriation to expand funding for the County's newly created Public Health Emergency Grant (PHEG) program to provide financial assistance to local restaurants and retail shops that are struggling to survive because of the Covid-19 pandemic. All Councilmembers are sponsoring this special appropriation that was spearheaded by Councilmember Nancy Navarro.

Councilmembers have been working with local businesses throughout Montgomery County to address the financial impact that Covid-19 is having on the local economy. Restaurants and small retail stores have been two of the hardest hit sectors because these businesses operate on small profit margins even during robust economic times. The additional funding proposed by the Council would be used to provide grants directly to these businesses.

Under the PHEG program, businesses with 100 employees or less that are suffering economic impacts from Covid-19 are eligible to receive grants of up to $75,000 per business. The County will seek reimbursement from the federal and state government for any eligible costs.

This special appropriation is in addition to the $5 million reserved for local restaurants and storefront retail operations as part of the original $20 million appropriation by the Council to create the PHEG program through the County’s Economic Development Fund. The source of the funds is the County’s General Fund Reserves.

Montgomery County has launched a website for the PHEG program. The website provides information for businesses to prepare their grant applications, which will be available soon.

The Council is tentatively scheduled to receive public testimony on this special appropriation on April 21 at 1:30 p.m. The Council staff report can be viewed here.