Asheville staff: $15.5M small-business recovery grants to launch after notice to proceed; applications expected this summer

City staff told the Planning, Economic Development and Environment Committee on April 21 that City Council approved awards totaling $15,500,000 under Community Development Block Grant ' Disaster Recovery (CDBG-DR) to four subrecipients and that small-business grant programs will open for applications only after the city issues formal notices to proceed.

"We anticipate finalizing all award contingencies very, very soon," a city staff member said, adding that staff aim to complete subrecipient agreements, environmental reviews and project manuals before allowing subrecipients to begin operating. "In the spring and summer small businesses grant programs will become available through subrecipients." The staff member cautioned that the city and HUD must clear remaining contingencies before details can be publicized.

Why it matters: the program is intended to help storm-impacted businesses in Asheville recover and create or retain jobs for low- and moderate-income residents. Staff said the program will be administered through four subrecipients: Mountain Biz Works, ArtsABL/ArtsAVL, Eagle Market Streets and Venture Asheville, and that the city prefers to launch all four subrecipients simultaneously to avoid confusion.

Eligibility and documentation: staff said eligible businesses must meet U.S. Small Business Administration size standards for their primary industry (by NAICS code), be independently owned and operated (generally excluding national franchises), maintain a principal place of business within Asheville city limits (a verifiable commercial street address), and demonstrate direct or indirect economic harm from Tropical Storm Helene. Staff listed typical evidence subrecipients may request: commercial leases or deeds, utility bills, business licenses, tax registration documents, payroll records, damage estimates, insurance loss reports, photos, pre- and post-disaster financial statements and narratives of economic impact. Staff also said applicants will need standard federal vendor identifiers (UEI and CAGE) and a NAICS code.

Subrecipient programs and scale: Jeffrey Kaplan of Venture Asheville described a 14-week accelerator and online learning modules the organization will use alongside grant awards. "We're giving each company $25,000," Kaplan said, estimating that the awards tied to this funding will reach up to 30 companies; combined with prior cohorts he said Venture Asheville will have worked with about 40 companies by program end. Kaplan cautioned that interest will almost certainly exceed available funds.

Mountain Biz Works and partners, represented by Christine Lager, said the partners are building a single application portal and shared back-end administration so business owners have one place to apply and can access robust technical assistance and outreach supports. Lager emphasized outreach to underserved communities and said partner lists and communications materials remain pending while the subrecipient contract is finalized.

Timeline and next steps: staff said the formal "green light" is a notice to proceed issued after all contingencies are satisfied; until that notice is issued staff and subrecipients have been advised to limit public details because program elements can still change. Staff said they are "driving toward" spring and summer for a launch but acknowledged surprises could delay signatures. Council members asked staff to track application demand so the city can consider requesting additional funding if interest far exceeds the allocation.

The city directed business owners to preparatory resources at AshevilleRecovers (the CDBG-DR page) and provided an email contact for inquiries.