Details of rollout of recovery fund to help businesses hit by Atlanta water crisis

Small businesses that saw their bottom lines evaporate during Atlanta’s nearly week-long water crisis could soon see some financial relief.

Mayor Andre Dickens announced a $5 million recovery fund last week to help some of the thousands of businesses forced to close their doors after two major water main breaks in Vine City and Midtown caused low pressure or water outages in much of the city.

Money for the fund will come from the Department of Watershed Management budget. Invest Atlanta, the city’s economic development agency, administers the fund. The money will be provided as a grant, not a loan, and will not have to be repaid.

Eloisa Klementich, CEO and president of Invest Atlanta, told members of two Atlanta City Council committees this week that she anticipates being able to notify businesses receiving awards from the City of Atlanta Business Recovery Fund by the end July.

Klementich said Invest Atlanta researchers determined that nearly 7,000 businesses were affected by the initial May 31 boil water notice that covered much of the city. Some areas saw water service restored on June 3. Around 3,700 businesses were under advisory until June 6.

The amount of the grant will be based on the company’s revenue and the length of time it was impacted, according to a presentation by Klementich.

For example, businesses closed or impacted for one to three days with:

• Incomes below $500,000 will be eligible for approximately $2,000; for four days or more, around $6,000.

• Incomes between $500,000 and $1 million will be eligible for approximately $4,000; for four days or more, about $8,000.

• Income over $1 million will be eligible for approximately $5,000; for four days or more, around $10,000.

If each business applied for a grant, the city would need about $10 million, Klementich said. She said Invest Atlanta expects about 40% of businesses to apply for financing based on data collected when the agency administered COVID-19 financial aid that would cost about $4.5 million.

“Ultimately we won’t know until we receive the applications, but we are confident that statistically we will be able to address many companies, probably up to around 700 companies, with this fund ” Klementich said.

The City Council is expected to approve the ordinance creating the fund at its Monday, June 17 meeting. Invest Atlanta is planning a webinar to inform businesses about the program during a webinar on Monday.

If all goes as planned Monday, the Invest Atlanta board of directors will vote on the program at its June 20 meeting.

Applications would be accepted from June 24 to July 8. Businesses would then know the week of July 29 if they received funding.