by Scott McClallen
When in the spotlight at the Mackinac Policy Conference, Wayne County committed $32 million of federal COVID relief to small businesses in impoverished areas.
The New Economy Initiative, a nonprofit that helps small businesses develop, added $22 million of private donations for a total of $54 million. But six months later, the county pulled the plug on the three-year initiative, Crain’s Detroit first reported.
NEI Executive Director Wafa Dinaro said that the news was “incredibly disappointing,” but the program will continue on a smaller scale.
“We’re continuing to move forward to do the work; it’s just going to look different because it’s only $22 million and not the full $54 million,” Dinaro told The Center Square in a phone interview.
Wayne County received $339 million in federal COVID relief.
Historically, NEI has helped small businesses in Detroit, but it wants to expand to Inkster, River Rouge, Ecorse, and Melvindale – all underserved communities of color in which businesses had some of the highest denial rates in the county for Paycheck Protection Program loans.
“We’re still going to move forward and support underserved communities,” Dinaro said. “It’s just not going to be able to support as many small businesses.”
When announcing the initial commitment, Wayne County Executive Warren C. Evans said that small businesses are the “backbone of our communities” that are still reeling from inflation and a tight labor market.
Luz Meza, Director of Wayne County Economic Development Department, said that the Evans administration has contributed more than $60 million in small business relief and “remains committed to the ongoing support of small business.”
Meza said that Wayne County wanted to build direct relationships with stakeholders during a change in leadership.
“We will continue to make small businesses a priority through the investment of ARPA funds in projects such as the small business hub while continuously integrating input from our small business stakeholders,” Mesa said in a statement. “We strive to deliver a transparent process as we continue to make strides in economic development within Wayne County.”
The Community Foundation for Southeast Michigan, Ford Foundation, Hudson-Webber Foundation, JPMorgan Chase, The Kresge Foundation, Ralph C. Wilson, Jr. Foundation, W.K. Kellogg Foundation, and William Davidson Foundation donated the private funding.
The Wayne County Commission plans to vote Thursday on whether to spend about $47 million of COVID relief. The Commission will consider whether to allocate $20 million for the city of Detroit’s Joe Louis Greenway Project, $9.6 million for Dearborn Parks, and $4.5 million to Van Buren Township for the Community Center Project and Senior Center Improvements.
The Thursday agenda includes planned votes for $3.5 million for the city of Ecorse for Mill Street Redevelopment, $2.5 million for the Motown Museum Expansion project, $2.5 million for Rouge River Park, and $2.3 million for the city of Taylor to upgrade Lange Park. Possible upgrades include a bicycle motocross pump track, a slackline course, geo climbers, disc golf, footie golf, walking paths and trails, fishing docks, fitness challenge course, and a skateboard park.
Local governments have until late 2024 to obligate the funds and until late 2026 to spend them.
– – –
Scott McClallen is a staff writer covering Michigan and Minnesota for The Center Square. A graduate of Hillsdale College, his work has appeared on Forbes.com and FEE.org. Previously, he worked as a financial analyst at Pepsi.
