Funding and programs part of $72 million strategy to improve Philadelphia’s neighborhood businesses
Philadelphia, April 28, 2009 – This afternoon Mayor Michael A. Nutter and Deputy Mayor Andrew Altman announced $3.4 million in awards from two funding programs to facilitate commercial corridor development projects and assist the growth of neighborhood businesses. Additionally, Mayor Nutter launched a third initiative, the Small Business Loan Guarantee Program, intended to increase lending opportunities for small businesses. These programs represent the latest initiatives within the city’s neighborhood investments strategy directing $72 million in bond funding and federal tax credits to leverage over $160 million in private investments and create or maintain more than 900 full-time jobs.
“Philadelphia is a City of neighborhoods and neighborhood businesses,” said Mayor Nutter. “By encouraging investments in our commercial corridors, we can help our business community weather this current economic downturn and ensure that our economy as a whole emerges stronger on the other side.”
The initiatives announced include:
The ReStore Retail Incentive Grants Program represents a partnership with The Merchants Fund (TMF), in which the city granted $500,000 and oversight of the program to TMF for the purpose of supporting new and expanding retail along commercial corridors. The awards, which are funded through the 2006 Commercial Corridor Bonds, are spread across 12 separate businesses throughout city.
The Gap Financing Program is a combined loan and grant funding product created from City bond
funds, and administered and further capitalized by The Reinvestment Fund (TRF). The program will provide low interest loans to small business development projects that would otherwise be fully financed but for the current credit crisis. Eligibility stipulations included existing senior lending of at least 80% of total project costs, as well as the ability to begin construction within three months. First round awards, ranging from $1,000 to $1,000,000, were made to five development projects that successfully demonstrated feasibility and financial need.
The Small Business Loan Guarantee Program was developed by the Philadelphia Industrial Development Corporation (PIDC) with the support of the Commerce Department. Valley Green Bank and United Bank will be the first private partners in this pilot phase of the program. The loan guarantees will increase access to capital throughout Philadelphia by providing lenders with additional security, and will provide small businesses with experience that will lead to independent relationships with banks.
“These programs are fundamental pillars in our city-wide economic development strategy of focusing investments in Philadelphia’s neighborhoods to encourage business growth and job creation,” said Deputy Mayor Andy Altman.
These programs spur a more competitive business environment by reducing the cost of expansion and increasing access to capital for small businesses in Philadelphia’s neighborhoods. Additionally, these programs further promote diverse business’ access to private capital by requiring strict minority, women, and disabled business enterprises participation rates in all contracts.
Other recent initiatives within this neighborhood investments strategy include:
LISC Non-Profit Acquisition Pool: $5 million in financing to eligible non-profit entities for the acquisition of properties located on neighborhood commercial corridors.
The Commercial Revitalization Deduction Program: $12 million in federal tax credits allocated to six construction or renovation projects in economically disadvantaged Renewal Communities.
The Targeted Blocks Façade Grant Program: $1 million allocated across five key commercial corridors to make external improvements to businesses, including painting and signage upgrades.
Targeted Redevelopment Project: $1.6 million in grants to commercial and mixed-use building projects along commercial corridors.
Home-Buy-Now: $1.5 million in grants of up to $5,000 to homebuyers if matched by employers.
ReStore Retail Incentive Grant Recipients:
3P’s Café & Palmer Park Produce
D.P. Dough
The Gold Standard Café
Kaffa Crossing
Lovers & Madmen Coffee Lounge
Tiffin Pizza, Etc.
The Trolley Car Café
Weavers Way Cooperative Association:
The Wine Thief
Winnie’s Le Bus Manayunk
Yards Brewing Company
The Village at 63rd Street
Gap Financing Recipients:
40th Street Live, LP
Weavers Way Cooperative Association
1201 Chestnut Street Partners, LP
Brinton Housing Partners
