The 1200 Fund’s Fast Grant Won’t Be Enough To Bailout All Business Applying For The Funding

More than 350 businesses applied for the fast grant, but the non-profit is only able to help 100 businesses.

DULUTH, Minn. – The City of Duluth announced fast grant funding through the 1200 Fund to help businesses recover from the economic impacts of Covid-19,

With limited funds, the number of businesses applying for the grant exceeds the number that can be helped.

More than 350 businesses applied for the fast grant, but the non-profit is only able to help 100 businesses.

The 1200 Fund is a program to help rebuild businesses and establish employment opportunities during the pandemic.

The non-profit allocated more than $1 million to fund the fast grant to help bail out struggling businesses from the financial impacts of Covid-19.

Approved businesses can receive $10,000 dollars to put towards rebuilding or recovering their operations.

But the pot of money set aside to help won’t be enough to go around to help all the businesses hoping to receive financial relief.

“I want to thank businesses that have articulated that you have a need. It’s my understanding the need is tremendous and well-articulated, well-grounded as well as your heart and spirit is in the business you have built,” said Duluth Mayor Emily Larson. “I recognize that if we could help everyone’s business, we would, but the 1200 Fund does not have that financial capacity.”

The 1200 Fund board of directors ultimately make the decisions of which businesses get approved for the funding, but understanding the strong need for financial support doesn’t make the process any easier.

“I can tell you for the board members, its really a difficult and gut-wrenching process as they are trying to select them because they know only about one-third or one-fourth are going to receive funding,” said Planning and Economic Development Director Chris Fleege.

Other entities and foundations are also encouraged to step up to assist the city to bring businesses back from the financial impacts of Covid-19.

All applicants are expected to be notified of a decision by the end of next week.