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City approves $2 million drought relief grants for small businesses; LiftFund to administer program
Summary
City Council voted to create a short-term small-business drought relief program, directing Type B street funds to a LiftFund-administered grant pool that will provide up to $50,000 per eligible affected business. The program aims for speedy disbursement while staff pursue parallel work programs.
Corpus Christi's City Council approved a $2 million drought relief grant program on Feb. 11 to provide short-term financial help to small businesses hit by water restrictions.
The program, to be run by LiftFund, will provide grants up to $50,000 per eligible business to help retain employees and cover operating shortfalls caused by stage 3 water restrictions. The council authorized a Type B funding transfer to free general-fund dollars and cover the program. LiftFund will handle application intake, eligibility verification and disbursement; staff said they plan to start accepting pre-applications within days and begin disbursing grants as quickly as feasible.
Why it matters: Landscape contractors, nurseries and irrigation businesses told the council they had reduced staff and cancelled projects after tighter watering rules took effect, and warned more layoffs were imminent. The relief program is intended as an emergency bridge so skilled local workers are not lost permanently to other industries.
Program basics: Eligibility will be limited to businesses physically located in the city limits that have been operating for at least 12 months and that show at least a 20% year-over-year revenue decline tied to drought restrictions. Grants will be awarded on a first-come, first-served basis; LiftFund will review documentation such as business bank statements and payroll records. Staff and LiftFund told council they will provide outreach in English and Spanish. The packet includes a LiftFund administrative fee; council members asked staff to seek a lower fee but approved the contract to expedite disbursement.
Council direction and next steps: Council members urged staff to pursue parallel steps to create public contracting opportunities and to expedite public works or procurement projects that could employ affected firms. Staff said that short-term grants will be paired with longer-term programs and that they will report back on implementation; LiftFund will provide biweekly status reports, and staff will test opportunities to channel city work to impacted businesses.
Ending: Council approved the contract and funding transfer after public comment from affected business owners and trade associations. Staff said the goal is immediate relief without delaying a later, more structural approach to job creation and water-efficient conversions.
