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Durham entrepreneur group presses city for $20,000 grant payouts; city cites federal compliance review, proposes March 24 deadline
Summary
Entrepreneurs who completed a city-backed Momentum Financial Academy said they were promised $20,000 grants that have not been paid. City staff said compliance issues with the federal grant source halted payments and pledged to pursue an alternate funding source and deliver checks by March 24 if conditions are met.
Local entrepreneurs who participated in a city-supported Momentum Financial Academy told the Durham City Council on Thursday they had been promised $20,000 awards after the accelerator and have waited months without payment. City staff acknowledged the delay and said federal compliance checks had paused subsequent draws; staff proposed short-term alternatives and set a tentative delivery target.
Shay Ramos, who identified himself as a local entrepreneur and business owner, told the council the Momentum Financial Academy cohort completed training last September and were told to prepare to receive $20,000 each within 30 to 45 days. "We're at almost five months. None of us have received a dollar," Ramos told the council. He said participants had incurred costs—some had bought insurance and prepared expansion plans—based on the promised awards and asked for a public explanation and a timeline.
Ed Nixon, acting director of the Office of Economic and Workforce Development, explained the program funding is federal and that the department has flagged compliance concerns that must be resolved before HUD funding can be drawn. Nixon said the compliance issues relate to required environmental verifications and other documentation tied to Community Development Block Grant-type rules. "These are federal funds... we have some concerns have surfaced, related to some compliance issues. And so before we can continue, the money's coming out, those compliance issues have to be addressed," Nixon said.
Nixon also said the department is exploring an alternate source—American Rescue Plan Act (ARPA) funds—to make payments now while the compliance questions are resolved. "So we're gonna use the ARPA money now, and we'll work with community development on the back end to clean up those issues," Nixon said. He told the council staff expected to have checks cut "over the next 30 to 45 days" and agreed in the meeting to provide a clearer deadline. Later in the discussion Nixon stated, "March 24 will be a drop date that we, would anticipate." City officials noted follow-up conditions: vendors and participants must meet program requirements before they can receive payments.
Council members questioned the quality of communications to participants and the pace of staff responses. Nixon said department records show emailed communications in November, December and January and that staff are working to resolve both compliance and communication gaps. Deputy city manager and other staff present emphasized the administration will prioritize the review and seek to complete payments sooner than the proposed date if possible.
The council did not take formal action on the item in the meeting; staff said they would return with updates and that the department intends to pursue the ARPA-funded workaround only as a short-term measure until federal compliance is cleared and HUD funds can be drawn.
Ending: City staff pledged follow-up, proposed using ARPA funds to avoid further delay and set a March 24 target to deliver checks to Momentum participants if required documentation and compliance steps are completed.
