The COVID-19 public health emergency has had a negative economic impact on small businesses. In response, the Penny Foundation and the city of Birmingham have partnered once again to fund grants to support small businesses in the Birmingham metropolitan area.

The Penny Foundation will give out grants to small businesses located in certain neighborhoods of the city. With $125,000 of funding available, applicants can receive between $1,000 and $2,500 in grant money. The money can be used on necessities such as mortgage, rent, utilities, building improvements and developments.

Council President Darrell O’Quinn, President Pro Tem Wardine Alexander, and Councilors Clinton Woods, Crystal Smitherman and LaTonya Tate each contributed $27,500 from their office’s American Rescue Plan Act funds.

The Penny Foundation’s Founder Lyord Watson spoke at Birmingham City Hall Tuesday.

“The Future Forward business grant cycle plays a crucial role in fostering innovation and sustainability. It’s not just about financial support; it’s an investment in the potential of organizations to make a lasting impact,” Watson said. “The grant cycle allows us to identify and empower businesses that align with our mission, driving positive change in our communities. It’s a partnership beyond funding – it’s about collaboration, growth, and creating a meaningful difference together.”

Watson told AL.com that small businesses frequently require assistance with supplies, or need help with a relatively small purchase that would help them level up their services.

“A number of different needs, with a lot of businesses, and when you talk about creatives, often times while thinking about small businesses, they will have creative looks and they needed support around supplies for their art”

Businesses can apply for funding between Feb. 1 and 15. Grant winners will be announced Feb. 29.

Eligible applicants must:

• Own a small business with a valid business license in Birmingham’s District One, District Five, District Six, District Seven, or District Nine.

• Be currently active and open for business, and able to show proof of operation before Feb. 15, 2020.

• Agree to implement proposed services or upgrades within one month of the awarded grant.

• Have less than 25 employees.

• Agree to use an approved/licensed professional consultant and/or other identified professional service provider.

• Stay in business for one year after receiving the grant or pay the appropriate pro rata share of the funds back to Penny Foundation.

More information is available at pennyfoundation.org/futureforwardfund.