Newark is fronting most of the cash in its $6 million fund that will help residents and small businesses amid the coronavirus pandemic.

While other municipalities are waiting on state aid or federal funds, Newark has come up with its own economic stimulus for local business owners forced to close and residents losing paychecks.

The city is tapping into federal grants it already has and repurposing them for its response to COVID-19. Newark Mayor Ras Baraka expects those grants will be reimbursed because of the emergency declarations that have been put in place around the nation.

“Each of these funding sources are being repurposed to focus on COVID-19 so that we can address the issues that are front and center and present for the residents and businesses in Newark,” said the city’s Economic and Housing Development director, Allison Ladd.

Community Block Development Grants and HOME funds - both federal grants that help communities address issues like affordable housing for low-income residents - will be repurposed, said Ladd.

Money from the city’s Affordable Housing Trust Fund and Community & Economic Trust Fund will also be re-allocated. Some of those trusts are funded by developers who get approval to build projects that don’t meet the city’s mandated number of affordable housing units under local inclusionary zoning laws.

The $6 million fund, however, is helping residents who most often benefit from those grants and city dollars.

Those who would be helped include small businesses, the homeless, arts organizations, homeowners and nonprofits.

The mayor also directed the tax assessor to reassess property values for developers who have buildings with business tenants negatively impacted by COVID-19. Those buildings will be reassessed to reduce the taxes owed to the city and the tax savings will have to be passed along to small business tenants through rent reductions, the city said.

Baraka said on Thursday that a developer’s application will have to be jointly filed with business tenants in order to receive the tax reduction.

“We'll be able to definitely find out if this is happening or not,” Baraka said.

City officials are already looking for ways to expand the $6 million fund. That could happen with money from a federal economic stimulus package and contributions from major corporations based in Newark, city officials said.

“We seeded this grant with $6 million and we’re hoping that other people begin to add on to that seed,” the mayor said.

The city has already received some seed money for the $6 million fund from Prudential Financial, which is headquartered in Newark. The company contributed $300,00 to the city and $600,000 to the United Way of Greater Newark, which will administer some of the funds to support the city’s initiative.

Other funds for different industries in the city’s initiative will be administered directly by Newark.

Additional information about the programs will be announced over the next few days, the city said. For more information about each of the programs, email EHD@ci.newark.nj.us.

Here are each of the initiatives:

1. An investment of up to $2 million in a small business and non-profit emergency fund with grants up to $10,000 for 200 qualified businesses.

Applications for this fund will open on March 30, through a link on the United Way of Essex County website

The business must have a physical establishment located in Newark and have 10 employees or less. The business must show loss of income directly tied to the coronavirus. Any businesses that owe money to the city will have their applications placed at bottom of list.

An informational webinar on the program will be held Friday at 1 p.m. Small businesses and non-profits must register online.

2. Approximately $1 million investment in rapid, short-term rental housing for 300 of the most vulnerable Newark residents, including the homeless.

3. Up to $1 million investment in community-based non-profits that serve Newark residents.

4. A $1 million investment in the “Live Newark” program to provide down payment and rehabilitation funds for up to 100 Newark homeowners.

5. Up to $750,000 arts initiative investment that will assist up to 30 arts and cultural organizations with operating funds and capital funds.

6. Savings from tax reassessments aimed at helping lower business tenants’ rents.

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Rebecca Panico may be reached at rpanico@njadvancemedia.com. Follow her on Twitter @BeccaPanico.