SACRAMENTO, Calif — Last week, Sacramento Councilmember Sean Loloee was indicted on 25 charges regarding his North Sacramento businesses. Now, some business owners in his district are wondering what will happen to millions of dollars in grant money that they applied for.
Lil Joe's has been a Del Paso Boulevard staple since the 1940's, but over the last three years, owner John Fierro said things have been difficult. The amount of foot traffic hasn't been the same.
"It's been a struggle; we haven't really become a profitable business at all," Fierro said.
Kati Kouklis, the executive director of SledgeHammer Graffix, is also struggling but managing to make things work.
"It's been challenging to have economic development in this community, but we are thriving nonetheless," Kouklis said.
Many business owners along the boulevard have gone through challenges, but when the city announced the North Sacramento Transformative Reinvestment Grant Program, they felt hopeful for the future.
"It was like a dream come true. Like, oh my gosh, they're offering up to $240,000 for infrastructure updates," said Kouklis.
A part of a $3.5 million investment, funded by the American Rescue Plan and overseen by the city of Sacramento, small businesses and non-profits within District 2 are eligible to receive between $25,000 to $240,000 to retain jobs and expand their businesses. However, shortly after the Dec. 5 deadline for applications, the district's councilmember, Sean Loloee, was indicted on federal charges related to his Viva Supermarket businesses.
"It does beg the question, is this grant funding or other initiatives that he's driving forward going to be impacted by this? And if he does withdraw from office or is removed from office, who then is going to leave this and carry it out?" Kouklis asked.
Councilmember Loloee's office did not provide a comment, but a spokesperson with the city of Sacramento said the program is not on hold. The Office of Innovation and Economic Development will be administering the grants and is still on track for the first quarter of 2024.
"It's pretty tough out here and we need to do something about it. And I think this would be a good step," Fierro said.
There is also a North Sacramento Façade and Property Improvement Grant Program. Business owners could get anywhere from $5,000 to $30,000 to help with exterior paint, new signs, windows, all things that would help the physical appearance of their businesses. Applications for this grant are now closed, but businesses are also expected to get their funds sometime in the first quarter of 2024.
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