Walnut Creek considers grant relief program for small businesses

Small businesses say they need a lifeline and with no federal relief bill, cities are trying to fill the gap. Walnut Creek's city council on Tuesday considered a grant relief program.

WALNUT CREEK, Calif. - Small businesses say they need a lifeline to survive the pandemic, but so far there's been no additional federal relief bill.

That has left states and cities to fill the gap. On Tuesday night, the Walnut Creek City Council became the latest local government to consider small business grants of $5,000-$10,000 to help.

The meeting wrapped up after 10:30 p.m. Tuesday with the city council directing staff to begin crafting a grant program that could be implemented by the end of February.

Bounty Hunter Walnut Creek is one of many restaurants starved for cash and struggling to survive on take-out orders.

"We had to furlough about 30 people out of the Walnut Creek restaurant which is really unfortunate and heartbreaking. Especially since it's the second time we've had to do so," said Marc Gigantelli, Bounty Hunter Walnut Creek's Director of Restaurant Operations.

That's why they and other small businesses say financial relief aid could be the difference between surviving or sinking.

Gigantelli says funds could help cover costs of switching to outdoor dining and other pandemic modifications.

"The canopies themselves cost a pretty good amount of money, the heaters you have to consider," said Gigantelli, "It takes a lot of money to get this done. And that doesn't even include all the labor and putting all this together."

"The grant program would be a huge help to the small businesses, because many of them have already gone down the road of seeking loans, in some instances multiple loans," said Kathy Hemmenway, the Executive Director of the Walnut Creek Downtown Business Association, which represents 650 businesses in the city. She says some businesses have had to close, but grants would be a lifeline for others who are struggling to pay rent, pay staff and dealing with lost revenue.

Walnut Creek and other cities, however, are facing the stark reality of lost tax revenue to local governments during the pandemic, and it's not clear whether state and local governments will receive a helping hand from the federal government.

On Tuesday, congressional leaders did meet with Treasury Secretary Steve Mnuchin and Chief of Staff Mark Meadows. So far, there has been no deal.

One major sticking point is funding for state and local governments which was supported by Democrats and President Trump but rejected by some Senate Republicans.

"The United States Senate should have passed the coronavirus and economic relief package months ago. People are hurting. Millions out of work. Small businesses closing," said President-elect Biden Tuesday.

"The cities have been trying to do it as much as they can, but the federal assistance needs to happen now. They've been dragging their feet and it affects people's lives right now," said Hemmenway.

In Congress, both parties agreed to stay at the table and not leave Washington for winter break until they had a relief bill.