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Providing grants for tenant legacy businesses.
Many legacy businesses operate in leased spaces and are especially vulnerable to rising rents, lease instability, and sudden displacement. Targeted economic support for legacy business tenants can be an essential component of your legacy business program, helping these businesses remain in place, plan for the future, and continue contributing to the cultural, social, and economic continuity of their neighborhoods. Providing access to grants in your program can support legacy businesses by offering flexible, non-repayable funding that helps them absorb rising costs, invest in needed improvements, and remain rooted in their communities amid economic and development pressures. This section provides examples of grants that can be used for tenant legacy businesses
Grants are a form of financial assistance available to business owners in municipalities throughout the US and are the most commonly used economic tool in current legacy business programs. They come in many forms and are generally allocated to meet the specific needs of the granting municipality. Some are explicitly dedicated to legacy business owners, while others are widely available to all small businesses, including longstanding ones. The benefit of grants is that they do not need to be paid back like a loan, offering immediate assistance with little financial repercussion. The following section outlines a few grant programs available to legacy business owners as examples that might be used for your legacy business program. Be sure to work with your local municipal government or small business organizations to find grants available in your area.
Municipal Grants Specific to Legacy Business Owners
Municipal governments fund most of the grant programs associated with legacy business programs. These grants are often part of local economic development or small business programs, or are locally financed or funded through state and federal programs. San Francisco’s Legacy Business Historic Preservation Fund comes from the city’s general fund, while Los Angeles’ Legacy Business Recovery Grant was financed through a federal grant. Here are some examples to help you discuss and develop a grant program for your legacy business program.
Los Angeles, California
The City of Los Angeles’ Legacy Business Recovery Grant Program provides financial support to local legacy businesses still recovering from the economic effects of COVID-19. A federal recovery grant from the American Rescue Plan Act (ARPA) initially funded the program. For eligible legacy businesses, the program offers grants of $10,000 for businesses with one to five employees and $20,000 for businesses with six or more. Applicants must demonstrate a need related to COVID-19 and provide information and tracking to ensure funds are used appropriately. To date, over 100 grants have been distributed throughout Los Angeles. In an effort to make the program more equitable, the city’s Economic and Workforce Development Department (EWDD) prioritizes grants for legacy businesses located in low- and moderate-income neighborhoods, owned by low- and moderate-income business owners, or facing a risk of displacement.
Case in point.
Atlanta, Georgia
Funded through a partnership with Invest Atlanta, the city’s economic development department, the Atlanta Local Legacy Program offers a Legacy Empowerment Grant to assist eligible legacy business owners. The grant offers eligible legacy business owners up to $5000 for business operations and modernization to help them remain competitive. The grant also offers legacy business owners or building owners in seven specific Tax Allocation Districts up to $50,000 for business improvement projects.
Case in point.
Detroit, Michigan
The City of Detroit’s Legacy Business Project, in conjunction with the Detroit Economic Growth Corporation (DEGC), offers a microgrant program for eligible local legacy businesses. The program currently offers fifteen microgrants of $2500-$5000 for business operations and succession planning, fourteen grants of $15,000 for legacy businesses in targeted districts throughout the city, and one citywide grant of $50,000 (no information was found on how the program determined the grant amount allocated to individual businesses). According to the DEGC grant website, the program features a streamlined application process for grants available on a first-come, first-served basis to eligible legacy business owners. Additional rounds of grant funding are also currently being planned.
Case in point.
Business Continuity Grants
Many cities throughout the US offer forms of business continuity funds or grants. These are forms of financial assistance available to small business owners to sustain business operations during challenges or disruptions, such as economic downturns or neighborhood redevelopment. The goal of business continuity grants is to stabilize a small business by assisting with day-to-day operational costs, such as rent, payroll, repairs, and modernization. These grants help to protect the local economy and job market, preserve cultural heritage and community, and prevent displacement for the municipality. While not specific to legacy business programs, these municipal programs can be leveraged to help preserve and sustain legacy businesses through direct support to business owners. Be sure to check whether grants like these are available in your area.Case in Point:
Long Beach, California
Though started by a local preservation organization, the Long Beach, California Legacy Business Program is now being run by the city’s economic development department. As a result, legacy businesses in that program have access to a wide range of financial programs, including two business sustainability funds. The first one is called Level Up LB: Extreme Small Business Makeover and Grant Program, which offers $10,000 to businesses that take part in a business resilience program. The second, called the Visual Improvement Program Grant, offers microgrants to help small businesses cover the costs of vandalism that may affect their operations.
Leaseholder Improvement Grants
Case in point.
BIPOC, ethnic, or immigrant business owner grants
BIPOC, ethnic, or immigrant-specific small business grants provide funding to communities that face barriers to accessing traditional funding sources. These grants are usually tied to improvements, modernization, training, or marketing and are designed not to increase financial burden. If your legacy business program includes these communities, be sure to identify any local, state, or national grant programs to support them. Providing access to these types of grants can help businesses stay open and continue to define the cultural identity and community character of their neighborhoods.
US Chamber of Commerce
The US Chamber of Commerce Foundation’s Coalition to Back Black Businesses offers $25,000 business enhancement grants to Black-owned businesses that are part of its program.
Case in point.
Other Grants
There is a wide variety of grants that could be incorporated into your legacy business program. They can come from a mix of public, nonprofit, and private sources, which generally focus on small businesses or regional economic development. Spend time identifying potential grant funding opportunities for your program before initiating economic support. Besides local municipalities, consider including grants through nonprofit or private community investment organizations, philanthropic organizations, or state and national small-business organizations (See the Where to Look and Who to Talk To section for more information on possible funding partners). Providing a diverse funding stream for your legacy business program can help it become more resilient and sustainable over time.
Resource.
Grantwatch
Grantwatch is an online listing directory of currently available grants. While they have multiple grant categories, the ones for small businesses and nonprofits may be most useful for creating and sustaining your legacy business program. Keep in mind that Grantwatch does charge a subscription fee for use.