Durham County commissioners allocated $750,000 in federal American Rescue Plan funds two years ago to launch Durham Rising, a small-business recovery initiative managed by the local nonprofit Knox St. Studios. The program combined direct financial grants with business coaching for local entrepreneurs hit hard by the COVID-19 pandemic, resulting in support for more than 200 businesses and a projected return of over $1 million in value.
Durham Rising Deploys ARPA Funds to Small Businesses
Local leaders structured the initiative specifically to target Main Street businesses and entrepreneurs rather than relying solely on macro-level economic measures. Knox St. Studios Executive Director Talib Graves-Manns noted that Durham’s intentional commitment of capital stood out compared to broader federal distribution efforts. Through the program, Knox St. Studios distributed more than $302,000 in direct funding and support services across its cohort of over 200 participating small businesses.
The program’s structure paired advisory coaching with capital injections. Participating business owners worked directly with nonprofit mentors to refine their operational models while receiving immediate financial backing to stabilize or expand their enterprises.
AI Fashion Startup Secures Growth Capital
Among the beneficiaries of the Durham Rising program was Jessica Couch, founder of Looks AI, an artificial intelligence-powered peer-to-peer fashion discovery platform built on Shopify. Couch received a $5,000 grant through the initiative, which she utilized to advance the development of her shopping tool designed to connect shoppers with peers sharing similar body types and personal styles.
According to Couch, receiving non-dilutive capital that did not come out of her own pocket served as a critical catalyst for her company, pushing the venture into full go-forward operational mode.
Accountability and Future Funding Questions
While Knox St. Studios reports a projected 1.5 times return on the county’s investment—translating to more than $1 million in total economic value—county oversight remains ongoing. Durham County Commissioner Michelle Burton stated that Knox St. Studios reports quarterly back to the county’s economic development team. Burton confirmed that while the nonprofit has managed the resources effectively, final independent verification of the reported numbers is still pending from the county manager’s office.
With the initial allocation of American Rescue Plan funds now exhausted, the long-term future of the recovery initiative remains undetermined. When asked about potential funding for a hypothetical “Durham Rising 2.0” or incorporating the framework into the permanent county budget, Burton indicated that discussions with the county manager are necessary before any decisions are made. Graves-Manns advocates for finding sustainable funding streams to maintain successful ARPA-backed programs that demonstrate measurable local impact.
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