Ten more small, inner-city businesses received grants Friday, May 8, from an economic development agency to help them try to make it through the coronavirus shutdown.

The EDGE Economic Development Finance Committee approved the second round of NEED Grant applicants, providing $59,000 to businesses that are spread throughout eight ZIP codes in Memphis, from Binghampton to Frayser to Whitehaven.

The applicants included barbershops, restaurants, a lawn care business, and a records store.

From hair salons to tattoo studio, small businesses get jolt of capital

The Economic Development Growth Engine of Memphis & Shelby County has set aside $1 million for NEED grants of as much as $10,000 apiece for qualifying small businesses in distressed ZIP codes. The areas must be listed as eligible for federal New Market Tax Credits.

The NEED (Neighborhood Emergency Economic Development) Grant was created to provide relief to small businesses, located in Memphis’ most vulnerable neighborhoods that have been affected by the COVID-19 outbreak.

Eggxactly Breakfast & Deli opened its doors last October and was hitting its stride when COVID-19 hit, forcing restaurants to close doors. 

“We are determined to stay in business and keep fighting the good fight,” Wendell Jackson, owner of Eggxactly Breakfast & Deli, said in a release. “Our No. 1 priority is ensuring the safety of our staff and customers. This grant will help us rehire our employees, pay our bills and get customers back in here when we reopen.”

The 10 businesses receiving funds Friday are:

• T Clifton Art Gallery, 2571 Broad Ave., received a $6,000 grant. The art gallery has been closed and operating as a virtual gallery only since March 24.
• Ray Rico Freelance LLC, 2294 Young Ave., received a $5,000 grant. The marketing agency has had to reduce its staff of nine full-time workers to seven part-time employees since COVID-19 hit.
• Eggxactly Breakfast & Deli, 1248 Marlin Road, received an $8,000 grant. The restaurant that opened in October has seen revenue drop 81% and had to furlough three employees.
• Hair Rhapsody, 5489 Winchester Road, received a $5,000 grant. The hair salon has been open seven years and faces $1,700 in monthly costs even though it has been closed for about two months.
• Vann Cut, 2546 N. Watkins, received a $5,000 grant. Open less than a year, the barbershop faced $1,500 in monthly expenses while it was closed down.
• A Cut Above Lawn Service Corp., 1331 Union, received a $5,000 grant. The lawn service company has reduced all employees’ hours to avoid furloughs. It has seen a loss of $13,000 in commercial revenue and has $16,000 in outstanding invoices from March-April due to customers being closed.
• B’Chanel Salon, 3340 Poplar, Suite 328, received a $5,000 grant. The hair salon’s owner has been using savings to pay business costs and has monthly rent to pay even though it was closed.
• WAFILMS, 526 Beale St., received a $7,000 grant. The media and film production company had five contracts in March cancel due to the virus, resulting in a loss of $131,000 in revenue.
• Goner Records, 2152 Young Ave., received an $8,000 grant. The music recording and record store had to close in March, and store sales account for 75% of revenues.
• The Choo, 3045 Southern Ave., received a $5,000 grant. The restaurant and catering company has seen a dramatic loss of business due to coronavirus.

To date, EDGE has approved $121,500 in NEED Grants for 21 businesses that are vital to their neighborhoods. MWBEs comprise 19 of those businesses.

Eligible businesses must have annual revenues of less than $1 million.

Those that are still open and have a plan to operate continuously for at least 90 days may qualify for $5,000 to $10,000.

Those that are temporarily closed but have a plan to reopen within 90 days, then stay open at least 90 days, may qualify for $5,000.

Liquor and tobacco stores, churches and nonprofits are among establishments that are not eligible for NEED grants.

The grant recipients for the most part intend to use the money to cover rent, taxes, vendor payments, payroll and other expenses.

Eligible businesses can apply and find more information at NEEDGrant.org.