Newport Beach throws a lifeline to local businesses and restaurants with small grant program

Applications are officially open for Newport Beach’s additional small grant program, geared to help small businesses and restaurants weather the adverse effects of the ongoing pandemic.

City officials approved the program at the Jan. 26 City Council meeting, prompted by the receipt of $290,000 from Orange County to be spent on economic support initiatives. Eligible applicants can receive a $5,000 one-time grant and will be prioritized by whether the applicant previously received a city grant or if the business is providing on-site services that have been impacted by restrictions.

About 58 grants are available, and funds can be used on day-to-day expenses such as rent, utility bills or payroll. They can also be used to acquire protective equipment for employees. All grant funds must be expended by the end of the current fiscal year.

If the number of qualifying applications exceeds the amount of money available, a lottery system will be used.

Applications will be accepted through 5 p.m. on Feb. 17. Applicants must prove they were impacted by the pandemic and meet other qualifications such as the total number of employees falling below 50. They must also be located within city limits to be defined as a small Newport Beach business. Those interested can visit newportbeachca.gov/supportgrants to apply and review the criteria.

Mayor Pro Tem Kevin Muldoon said he and other council members were thankful to the Orange County Board of Supervisors for providing aid to “those the most in need.”

“My colleagues in council and I think that the best use of these funds are to get it directly to the businesses rather than to government agencies,” said Muldoon. “Businesses are obviously the most negatively impacted and it’s more efficient to give it directly to businesses than it is to try and find ways to spend it through government agencies in hopes that it stimulates the economy.”

The city previously secured $2.1 million in federal grants in June through the county for small businesses affected by the pandemic. Average distribution was about $6,150 for 291 local businesses, but businesses could receive up to $10,000 to help recover the loss of revenue, depending on the number of employees.

Newport Beach Chamber of Commerce chief executive officer Steven Rosansky said in an email that the chamber fully supports the program and city efforts in trying to provide grants to businesses around Newport Beach as money is made available.

“Although the grants are limited to $5,000, for many small businesses, even that amount might allow them to keep an employee on for a couple of months or enable them to pay a couple of months rent,” said Rosansky.

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