Chamber of Commerce to Give $5,000 Grants to Some Small Firms

(Bloomberg) -- The Chamber of Commerce, the largest U.S. business trade group, launched a fund to award $5,000 to small businesses “in economically vulnerable communities” that have been harmed by the coronavirus outbreak.

The Save Small Business Fund, which the chamber announced Wednesday, will focus on companies of three to 20 employees in areas on an index of “distressed communities” from the Economic Innovation Group, a Washington think tank.

The announcement of the grants comes at a dire time for restaurants, dry cleaners, dog-walking services and other small businesses that have been closed to try to slow the spread of COVID-19. On Wednesday, a weeks-old $349 billion federal relief program for U.S. small businesses was already expected to run out of money with many still waiting to get a lifeline.

The fund will not be available to independent contractors but the Chamber said it aims to support as many small employers as possible. It did not give a total aid amount available. It will begin taking applications April 20.

The chamber also announced advocacy and education for small businesses, as well as research. Nearly a quarter of small businesses have already shut down temporarily in response to the virus, and 11% are on the verge of closing for good within the next month, according to a Chamber survey released earlier this month. Among small firms that are still open, 40% say they’re likely to close at least temporarily within the next 14 days.

More than 95% of the chamber’s 3 million members have fewer than 100 employees, according to the group, although its often viewed as a vehicle for big business interests and its board draws on companies like Federal Express Corp., ConocoPhillips Co., Allstate Corp., Altria Group Inc. and others.

Supporters of the fund include Merck & Co. Inc., The Travelers Cos. Inc. and others.

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