The U.S. Department of Commerce, through its Economic Development Administration, awarded $1.5 million in CARES Act Recovery Assistance grant funding for the benefit of small businesses in Newport News and Hampton. The award was a portion of the $13.9 million in grants to capitalize revolving loan funds for small businesses across Virginia.
The purpose of the CARES Act Recovery Assistance grant is to alleviate sudden and severe economic dislocation caused by the COVID-19 pandemic; to provide permanent resources to support economic resiliency; and to further the long-term economic adjustment objectives of the two cities. This $1.5 million award will be administered through the Peninsula Industrial Finance Corporation for a special COVID-19 relief revolving loan fund. It will be administered similar to the existing Peninsula Revolving Loan Fund (PRLF), which benefits small businesses in Newport News and Hampton. The Newport News Department of Development serves as the fiscal agent for the corporation and Grantee for this award. Stay tuned for details on eligibility requirements as well as how and when businesses can apply for COVID-19 loans.
“We are pleased to receive this generous award, and look forward to partnering with our colleagues in Hampton to help Peninsula businesses in their recovery efforts,” said Florence Kingston, Director of Development for Newport News. “We’ve assisted Newport News small businesses with over $1.4 million in COVID-19 relief funds to date, and this additional CARES award will help us extend our reach and make a greater impact.”
“The additional funds are another way to support our local small businesses,” said Hampton Economic Director Chuck Rigney, who cited Hampton’s early loan/grant program and more recent state program. “I’m pleased that we can work jointly with Newport News. This is a great example of regional cooperation between our two economic development departments.”
Newport News is among 850 localities and organizations across the country that benefitted from supplemental funding under the $1.5 billion provided to the Economic Development Administration under the CARES Act. Other Virginia recipients include the Virginia Small Business Financing Authority, Cumberland Plateau Planning District Commission, City of Lynchburg and City of Norfolk.