Oregon counties serve not only as direct providers of public health and emergency services in response to the COVID-19 pandemic and wildfire emergencies, but as advocates for the economic health of their communities, large and small, and the businesses that support them. 

As part of the State’s pandemic response, the Legislature allocated $22.5 million in Coronavirus Relief Fund (CRF) resources authorized under the Coronavirus Aid, Relief, and Economic Securities (CARES) Act and $10 million of State resources to Business Oregon for distribution as Emergency Business Assistance Grants, administered by local governments, economic development districts, and Community Development Financial Institutions (CDFIs). 

From May through July, Business Oregon issued 94 awards totaling $12.6 million in State funding and CRF resources through three grant rounds to intermediaries (cities, counties, Economic Development Districts (EDDs), CDFIs), who in turn distributed grants to small businesses impacted by COVID-19. A fourth and final round opened in September for distribution of the remaining funds.

While this was a significant and much needed investment into local economies, many counties and their sub-contracted intermediaries expressed concerns that despite significant outreach, the parameters and sideboards attached made administration of these funds overly restrictive and prevented full distribution.

In a September 17 letter to legislative leadership and the Legislative Emergency Board, the Association of Oregon Counties (AOC), local governments, CDFIs, and economic development organization partners advocated for removing the significant administrative barriers to distribution. The letter included four recommendations for the Business Oregon Emergency Business Assistance Grant administration:

  1. Streamline the application process for small businesses;
  2. Allow layering of state grants with Economic Injury Disaster Loans (EIDL) and Paycheck Protection Program (PPP) funding;
  3. Streamline administration and timing of multiple funding rounds – allowing unspent funds from rounds one through three funds to be released under round four; and
  4. Allow a consistent administrative/operating percentage for all deployment partners.

During a September 25 meeting, the Legislative Emergency Board relaxed some of the restrictions to allow for funds to reach more businesses, specifically: 

  • Business not subject to the governor’s “Stay Home, Save Lives” executive order 20-12 are eligible if it can demonstrate a 25 percent reduction in sales (reduced from 50 percent previously required) over a 30-day period in 2020 compared to a comparable period in 2019, and
  • Businesses that have received less than $100,000 in small business assistance through the CARES Act (such as PPP, EIDL, Economic Injury Disaster Loan Advance (EIDLA), City of Portland Small Relief Program, the Oregon Cares Fund for Black Relief and Resiliency, and other programs) are now eligible.

While this action by the Emergency Board was positive, it has been interpreted to apply only to round four programs being administered by CDFIs. AOC continues to advocate on behalf of streamlining and relaxing emergency business assistance grant administration in order to allow counties and their partners to distribute funds to struggling Oregon businesses. 

Contributed by: Mallorie Roberts | Legislative Affairs Manager