The Buffalo Common Council was expected to vote Tuesday to give the go ahead to disperse $4.3 million dollars in American Rescue Plan funding for Buffalo's small businesses, but the council delayed the vote due to a procedural uncertainty.
Instead, the council sent the item to the Committee of the Whole. In layman’s terms, that means there will be a special council meeting to discuss the dispersal of the funds at a date yet to be decided.
The money comes out of the $331 million in federal American Rescue Plan (ARP) dollars received by the City of Buffalo in 2021. Those dollars are designed to give relief to communities impacted by the COVID-19 pandemic.
"This whole process of ARP has been extremely frustrating," said University District Councilman Rasheed Wyatt, who lamented the fact it has taken over two years for the dispersal of this portion of the funds. That timeline grew Tuesday, when there was uncertainty about whether one of the organizations selected to disperse the funds meets requirements.
The National Development Council (NDC) has committed to add an extra $2 million of small business loans that would complement the city's commitment of $4.3 million, creating a $6.3 million small business program. It is important to note that $800,000 of the city's $4.3 million commitment will be paid to the NDC in administrative fees, leaving $3.5 million to hit the streets to support small businesses.
But the NDC is based outside of Buffalo.
Masten District Councilman, Ulysees Wingo, Sr., questioned if the Request for Application specified that organizations selected to disperse the money be based in the city, which would count the NDC out.
"I don't want to approve something that gets challenged in court, and we end up losing, and this money is kept in a longer limbo for our businesses in the city of Buffalo," said North District Councilman Joseph Golombek Jr., outlining his concerns.
With the council hurtling toward the August recess, a special meeting will need to be called this week to avoid further delay in getting the money in the hands of Buffalo's small businesses.
Update added Weds. July 26 4.20 p.m.
The Common Council has announced that they will hold a Special Session on Thurs. July 27 at 3 p.m. to discuss the ARP funding for small businesses.
