DENVER – Denver will inject another $25.6 million in federal CARES Act funds into the local economy to help people, small businesses and nonprofits impacted by the coronavirus pandemic.
The funds from the federal Coronavirus Aid, Relief, and Economic Security (CARES) Act are the city’s second batch of federal funds. Back in May, the city released around $20 million of about $126.8 million it received from the federal government.
This second round of federal funds will help in areas such as public health and safety, food support, grant programs for impacted nonprofits and small businesses, childcare support, the Left Behind Workers Fund, housing assistance and shelters, a spokeswoman for the city’s Department of Finance said in a news release.
“We know the COVID pandemic is disproportionately impacting our historically marginalized communities of color, both physically and economically,” Mayor Michael B. Hancock said. “These phase two funds must prevent further displacement and provide relief to our businesses, non-profits, residents and workers. With our partners and City Council, we can leverage these federal resources to address the community’s most urgent needs.”
The funds from Phase 2 will help in approximately 21 projects in the following five areas:
1. Emergency sheltering - $11.9 million
2. Economic recovery for nonprofits and small local businesses affected by the coronavirus: $8.3 million
3. Public health: $2.5 million
4. Support to individuals impacted by the coronavirus: $1.9 million
5. Food assistance for individuals impacted by the coronavirus: $1 million
Denver City Council will now have to submit suggestions for amendments to the proposed projects list for consideration before injecting these funds into Phase 2 programs.
“In addition to the Phase 1 and Phase 2 funds, the City has set aside $25M for citywide operations (payroll, telecommuting equipment, etc.) and intends to move those expenses from city budgets and onto CRF in the fall,” the spokeswoman for the city’s Department of Finance said. “The remaining approximately $56M will be split for two purposes: local match for FEMA emergency funds (currently the city is responsible for a 25% local match and CRF is authorized for this purpose) and; as contingency/reserve in the event of a resurgence of the virus in the fall. If there is not a resurgence, the city intends to release additional funds in the fourth quarter of 2020.”