Johnson County awards $225,000 in ARPA grants to 25 small businesses; applicants and advocates say eligibility communication must improve

Johnson County supervisors heard an update Wednesday on round one of an American Rescue Plan Act-funded program that awarded 25 small-business grants totaling $225,000 and committed the remaining funds to a second round this spring.

Ellie Moore of the Community Foundation of Johnson County and Evan Doyle of Greater Iowa City Inc. summarized outreach, eligibility and scoring procedures used for the “underestimated small business” grants, which were funded with county ARPA dollars. Moore said the program made awards between $3,500 and $20,000 and that 171 applications were received for round one; after a staff eligibility check that number fell to 125 and 25 awards were recommended by the steering committee.

The program aims to help “businesses who were disproportionately impacted by the coronavirus pandemic,” Moore said, and to prioritize businesses owned at least 50% by people from underserved groups or located in HUD-designated qualified census tracts (QCTs). The county contracted the Community Foundation to administer the grants.

Why it matters

County officials said the grants are intended to target businesses who missed other pandemic aid; community advocates told supervisors the program needs clearer communications so eligible business owners do not self-disqualify. Public commenters — including small-business owner Royceann Porter — said many Black-owned businesses in the South District mistakenly thought their addresses were inside a QCT and were removed from consideration before reviewers evaluated their applications.

What the county presented

- Funding: The County set aside $425,000 in ARPA funds for the program; Moore…