CHARLOTTE, N.C. — An error by the city of Charlotte early in the pandemic cost University City Partners more than $230,000 in grant money that would've helped small businesses in Charlotte's second-largest employment hub respond to the impacts of COVID-19.
The city and nonprofit only learned of the oversight because of a WCNC Charlotte investigation.
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In direct response, the city is now working to fix its mistake. At the upcoming Charlotte City Council meeting Monday, leaders are expected to approve the $237,500 in funding the city should've given University City Partners in 2020.
"The scoresheets were completed and calculated by human beings and a mistake did occur," media relations manager Lawrence Corley III told WCNC Charlotte. "There was an error in the calculation when adding up the scoresheet. As part of this media inquiry, city staff initiated a review of both the 2020 and 2022 programs and identified the mathematical error."
Using federal COVID dollars, the City of Charlotte created the Small Business Partner Support Grant program in 2020. Nonprofits, chambers of commerce and other organizations that serve the local small business community were eligible to apply.
INTERACTIVE DATABASE: Search for the applicants here
The city council approved $2 million in funding to a dozen organizations through the program that year. University City Partners was one of eight that applied but did not receive money, according to WCNC Charlotte's analysis of public records.
The city randomly assigned three, two-person teams of employees to review and score "eligible" applications. Final tallies, an average of the two reviewers' scores, determined which organizations received money.
As part of a detailed review of the city's program, WCNC Charlotte found three other organizations that secured a combined $430,000 in grants despite scoring lower on their applications.
"There was a human error and we're going to make it up to them," Councilmember Reneé Perkins Johnson said. "I ran on public accountability and I'm consistently fighting for that and so, that's important to me. That's important to all of council and we're going to make this right."
Perkins Johnson represents District 4 and sits on University City Partners' board. She said, as "the biggest cheerleader for District 4," she advocated for the nonprofit once she found out about the city's mistake.
"I've spoken to city staff," she told WCNC Charlotte. "We're going to work to make sure that they get that funding. Thank you for bringing that to our attention."
She said while the other organizations that received the money in 2020 still used the funds for the right purpose of sustaining small businesses, city staff have assured her there are now more checks and balances in place.
"We're going to have more than two people now reviewing those numbers," she said.
Due to the error, Grameen America, ASPIRE Community Capital and Historic North Charlotte Neighborhood Association received money. According to Corley, the latter two used their money to serve minority and women-owned small businesses and local artists.
New University City Partners President and CEO Keith Stanley said the nonprofit "firmly" believes in the value of the city's program and "the positive impact it can have on our community." He said, after WCNC Charlotte uncovered the mistake, the city reached out directly.
"We do understand that mistakes can happen and appreciate their willingness to address and take responsibility for the situation," Stanley said. "We remain committed to collaborating with the City and other stakeholders to foster a resilient and prosperous business environment in University City. Together, we can overcome challenges and build a stronger community for all."
If approved Monday, the University City Partners grant will be funded with American Rescue Plan Act dollars.
Contact Nate Morabito at nmorabito@wcnc.com and follow him on Facebook, Twitter and Instagram.
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