ASHEVILLE, N.C. (WLOS) — Asheville City Council approved $15.5 million to support the city’s Small Business Support Program (SBSP), funded through the Community Development Block Grant–Disaster Recovery (CDBG-DR) program.
“This funding is a critical step in helping Asheville’s small business sector recover for the long term,” CDBG-DR Program Manager Elma King said in a news release Tuesday, Jan. 17, 2026. “We are grateful to be able to allocate these resources to trusted community partners who are deeply connected to local businesses, versed in regulatory compliance, and able to deliver support quickly and effectively. Together, this investment will help strengthen and diversify our local economy and support the long-term resilience of Asheville’s small business community.”
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The city said four organizations were chosen to receive the funding following a competitive application process.
Here’s a breakdown of the funding distribution:
The organizations will establish grant programs to support small businesses impacted by Helene and ensure compliance with federal requirements. Asheville leaders said city staff will work with each organization to complete foundational compliance requirements, finalize funding agreements, and confirm program design.
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Once the agreements are signed, city officials said each organization will begin outreach and application processes for eligible small businesses.
Background
In September 2024, Helene caused devastating damage to lives and infrastructure across western North Carolina, remnants of which can still be seen in parts of the mountains. Asheville businesses were immediately impacted by floodwater, landslides, and weeks without potable water. The disaster was followed by months of decreased tourism, a major economic driver for the region.
ASHEVILLE TO RECEIVE $225M IN HELENE RECOVERY FUNDS AFTER HUD APPROVES REVISED PLAN
The U.S. Department of Housing and Urban Development (HUD) approved the city’s draft action plan for $225 million in CDBG-DR funds in May 2025 after rejecting its initial draft over what it described as diversity, equity, and inclusion (DEI) elements. HUD cited the following passage regarding the Small Business Support Program as a point of contention:
“Within the Small Business Support Program, the City will prioritize assistance for Minority and Women Owned Businesses (MWBE) within the scoring criteria outlined within the policies and procedures.”
Asheville City Council approved a revised version of the action plan during an April 2025 meeting that removed the reference to the city’s program for minority- and women-owned businesses.
