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Durham entrepreneurs say $20,000 Momentum grants delayed; city pledges alternate funding and 45‑day target
Summary
Business owners who completed the Momentum Financial Academy said they were told they'd receive $20,000 grants that remain unpaid after months. City officials acknowledged federal compliance issues and said they will pursue alternate funding (ARPA) and aim to issue payments by March 24, 2025 if requirements are met.
Entrepreneurs who participated in Durham’s Momentum Financial Academy told city council on Thursday that promised $20,000 grants have not been paid nearly five months after they completed the program, and they urged an immediate remedy.
Shay Ramos, a local entrepreneur and business owner, told the council participants were instructed to buy insurance and make other preparations because the city told them $20,000 grants would arrive within 30–45 days after program completion. Ramos said he and other participants have received no checks and inconsistent communication; he asked the city for a firm deadline and a response in public.
Ed Nixon, acting director for the Office of Economic and Workforce Development, told council the funds are federal monies that are being held because of compliance issues with the Community Development program’s documentation. Nixon said the department is addressing those compliance items and exploring an alternate funding source so awards can be made immediately.
"These are federal funds that are being passed," Nixon said. "We have some concerns related to some compliance issues. And so before we can continue, the money's coming out, those compliance issues have to be addressed. Those compliance issues are being addressed by the department." (Acting Director Ed Nixon)
Mayor Pro Tem and others pressed for a firm date. Nixon and other staff proposed an out‑date for issuing checks of March 24, 2025 (roughly 45 days from the meeting), contingent on completion of documentation requirements. The administration said it intends to use previously approved ARPA funds to pay participants now and to reconcile HUD or CDBG compliance issues afterward, rather than leave entrepreneurs waiting.
City staff described the ARPA option as a stopgap that is legally allowable and less encumbered by some of the environmental/compliance requirements that currently delay the CDBG‑origin funds. Officials said the city will aggressively pursue payments and asked entrepreneurs to submit documentation required for reimbursement. Council members urged staff to set a clear contact person and provide a timeline; the administration agreed to return with updates and to seek to complete payments well before the announced March 24 target if possible.
Ending: Staff characterized the situation as unacceptable and said they will prioritize getting payments out quickly while resolving federal compliance checks. The city will notify participants directly when checks are scheduled to be cut and will report back to council.
