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Implementing economic support in your legacy business program.
Incorporating or at least facilitating business support or training has become an increasingly relevant goal for legacy business programs, since many of the legacy businesses we support are not prepared or equipped for rapidly changing markets, consumer needs, or behaviors. However, most legacy business programs start as grassroots efforts, so providing this support and training can prove daunting. Luckily, you should not have to go it alone. Many municipalities already have programs in place to support businesses and provide training. If none are available locally, regional, state, and national programs can help fill in the gaps.
Where to Look and Who to Talk To
Including economic support in your legacy business program is a complex process that will require establishing solid partnerships and may require implementation in steps, over time. Start with your local municipal partners and organizations. Many of them may already have experience with the cross-department collaboration needed to create funding resources (if you do not). Most larger municipalities in the US already have local economic support programs in place that could benefit your program. They may also be the best resources for identifying regional, state, and national economic resources. The following section identifies resources and organizations that can help provide economic support to the legacy businesses, building owners in your legacy business program, and financial resources that can help you start and maintain that program.
Local Government Resources
Municipal Economic Development Departments
As discussed in the Business Support section of this website, economic development departments are involved in several legacy business programs across the US and generally have economic support programs in place for small businesses. These departments should be your first stop when identifying partners to help provide economic support to the businesses in your program. They can provide access to municipal general funds, economic recovery funds, and special funds, such as Business Improvement Districts. Many of these departments offer small business and recovery grants, or access to internal or external loan programs, that could help your business owners or building owners. Additionally, these departments provide access to the many state and federal economic support programs for small businesses, which could be used to support a legacy business program.
Your municipal economic development department may also include a small business office or department, or it may exist on its own. If one of these departments exists in your area, it would be the appropriate partner for supporting a legacy business program, since its focus on small businesses closely aligns with your program.
City and County of San Francisco
San Francisco’s Office of Economic and Workforce Development manages the Legacy Business Historic Preservation Fund (along with many other economic support programs for small businesses) that provides rent stabilization grants to the city’s Legacy Business Program.
Case in point.
Municipal Office of Historic Preservation (OHP) or Historic Preservation Department
Municipal OHPs are your first stop toward creating a preservation-based legacy business program. Their in-house expertise can help you develop local preservation criteria for legacy businesses, potentially opening an underutilized yet valuable funding channel. Municipal OHPs are a valuable resource for identifying and implementing economic support for your legacy business program. They may already be administering local preservation funding programs, such as Certified Local Government grants or historic preservation funds. Additionally, their expertise can open access to state and federal funds and tax credits, as well as to funding through partnerships with other preservation organizations.
Municipal Community Development Department (also known as Planning and Community Development or Housing and Community Development)
Local Community Development Departments are good partners for subsidizing the economic support tools of a legacy business program because of their existing expertise and use of local, state, and federal resources. They can also help you align your legacy business program with the municipal government's ongoing revitalization and anti-displacement priorities. These departments are most notable for providing access to federal programs, such as Community Development Block Grants (CDBGs) from the US Department of Housing and Urban Development (HUD), which can support small business programs. If your legacy business program supports small businesses that align with HUD objectives, such as revitalization or support for low-income communities, Community Development Departments can open economic support pathways for façade or building improvements. Community Development Departments also assist with economic recovery efforts. Several legacy business programs have used federal economic recovery programs to help their legacy business owners in times of need.
Los Angeles Legacy Business Program
The Los Angeles Legacy Business Program granted over $2M in grants to legacy businesses through their Legacy Business Recovery Grant Program, funded through the American Rescue Plan Act (ARPA)
Case in point.
Municipal Finance Departments (also known as the Treasury Department or Comptroller’s Office)
If you are looking to provide long-term funding for the economic support tools in your legacy business program, then your path likely starts with municipal leadership and the budgeting process. Once funding is established, the finance department can help with planning or defining how the funds are used and distributed.
Additionally, if tax incentives or programs are approved by municipal leadership, the finance department can help plan how they benefit your legacy business owners and building owners. Furthermore, they are the department that can help structure municipal revolving funds or Tax Incremental Financing (TIF) to support your legacy business program.
Big Idea
Tax Incremental Financing
Tax Increment Financing (TIF) is an economic tool commonly used by municipal governments to pay for revitalization efforts. It works by freezing the amount of property tax in an area that goes to municipal coffers at existing levels. The area is revitalized, leading to higher property values and, in turn, increased taxes. The increased tax, or “increment,” above the frozen tax is then used to repay the funds used for revitalization. Using TIF as an economic tool can be a resourceful way to finance the revitalization of the often under-resourced or marginalized commercial corridors where legacy businesses reside. It is important to note that Tax Incremental Financing is often considered a controversial approach given that it diverts funds from other necessary municipal programs.
Local Partners
Community Development Financial Institutions (CDFIs)
A Community Development Financial Institution (CDFI) can refer to a number of institutions—credit unions, private equity funds, or banks—that are certified and funded by the US Department of the Treasury, to focus on community-based lending and financial services for underserved communities or those that may not qualify for traditional funding. They provide these financial services to support long-term economic stability and financial equity in their communities.
Community Development Financial Institutions (CDFIs) are an excellent fit for supporting legacy business programs because of their focus on community sustainability and economic stability. If there are local CDFIs in your community, they can help provide essential capital for your legacy business program. They can provide direct loans or pathways to ownership for your legacy businesses or work with you to provide a sustainable revolving fund for your program.
Inclusive Action for the City | Los Angeles, California
CDFI Inclusive Action for the City in Los Angeles provides economic support tools that a legacy business program could directly leverage, directly linking economic support to cultural and economic preservation in its community. Their low-interest small business loans, such as the Tierra Fund, provide direct access to capital for improvements, while their Community Owned Real Estate (CORE) program offers small businesses co-ownership opportunities.
Case in point.
Local Financial Institutions
Most cities have local (non-CDFI) banks or credit unions that provide localized economic support for community revitalization projects and underserved communities, making them potential partners for legacy businesses and your program. These services may include loans, microloans, bridge financing, or grant programs. It is worth investigating which local institutions in your area provide this type of support.
Local Credit Union Example
In my hometown of San Diego, locally-owned Cal Coast Credit Union is known for its support of the San Diego Promise Zone. Their goal is to expand access to “capital and promote economic opportunity” to individuals and small businesses in the city’s most underinvested communities.
Case in point.
Local Nonprofit Resources
Community Development Corporations (CDCs)
CDCs are private, community-run nonprofit organizations that work to revitalize local communities through housing, commercial, and community-focused programs. The benefit of CDCs is that community needs drive their mission and goals. These goals can often include preserving commercial districts and the legacy businesses that help define their communities.
CDCs often work with local governments and private funding to accomplish tangible improvements in their communities. The funds available through CDCs can provide direct economic support to legacy business owners through loans or grants, or indirect financial support through the purchase of commercial property in the community, made available to legacy businesses with affordable rents or co-ownership programs.
Municipal Chamber of Commerce
Chambers of Commerce are local organizations that work with local businesses and professionals to promote and support the local economy. Many municipal Chambers of Commerce provide funding to small business initiatives, primarily focusing on economic recovery and growth. They are generally membership organizations made up of local business owners who pay fees or dues which may mean access to their programs is only available to paying members. However, it is worth checking with your local Chamber of Commerce to see whether their interests and programs align with your legacy business program. These organizations can also provide valuable connections for your legacy business owners and offer access to other funding partners in the area.
Main Street Programs
Main Street programs are community-based organizations that work to revitalize and strengthen local commercial districts and downtowns. A local nonprofit or business association (e.g., Chamber of Commerce) usually runs these programs in coordination with the national Main Street America program and community-focused funding sources (e.g., CDFIs) to promote the commercial districts, support façade improvements and beautification projects, and assist business and property owners. Much like legacy business programs, Main Street programs are designed to preserve community heritage and character, promote economic sustainability, and help businesses thrive. These programs could serve as partners for your program or provide the vehicle and framework to launch a legacy business program. For more information, see the Main Street America section.
Local Preservation Organizations
Some local preservation organizations and nonprofits have grant programs or revolving funds that may help your program. Since these organizations often share similar historic and cultural preservation goals with legacy business programs, they can make natural partners. Check your local community to see if a local preservation organization exists. Given their overlap in goals, they will be reliable and supportive allies to your program.
Case in Point: The Los Angeles-based historic preservation group LA Conservancy ran the Legacy Business Grant Program from 2022 to 2023. They provided $5,000 grants to ten small businesses that “operated and contributed to their community’s history and/or identity for at least 20 years.” It is important to note that this program was made possible by a grant from Wells Fargo Bank, which provides an example for your own program.
Regional Resources
Local Initiatives Support Corporation (LISC)
LISC is a national nonprofit that works through regional offices to provide small-business financing through municipal governments and nonprofits. They are a community-focused institution that provides access to capital and supports community revitalization in underserved, under-resourced areas. There are regional LISC offices that can help your legacy business programs secure grants and receive technical assistance to support façade improvements, owner succession planning, and economic stability.
LISC Municipal Partnerships
LISC Los Angeles is working with the City of Long Beach, Citi Community Capital, and Project Equity on a legacy business preservation program that focuses on the economic stability and sustainability of legacy businesses through an employee-ownership transition.
Case in point.
Financial Development Corporations
Financial Development Corporations (FDCs) are nonprofit financial institutions established by state governments to provide economic support for small businesses. They focus on small-business lending for underserved and under-resourced communities, especially borrowers who face hurdles in accessing capital through traditional channels. Though formed under state law and generally managed by state economic development departments, FDCs are regionally operated and provide low-cost loan programs, bridge financing, credit repair services, and business advising.
FDCs often serve as intermediaries, commonly working alongside CDCs and CDFIs, but some regional offices work directly with individual businesses and community organizations, such as legacy business programs. Many FDCs support the two-part economic support model needed for legacy business programs by providing financial services to both property and business owners. Some FDCs even help to provide revolving funds through community or nonprofit organizations, making them a good partner for creating a legacy business program revolving fund. Be sure and investigate your regional FDC to determine what support they can provide for your program.
State Government Resources
State Economic Development Office
All US state governments have an economic development office that can play a crucial role in providing economic support through a legacy business program. These offices exist to support and strengthen local economies throughout the state and offer a wide variety of programs for small businesses and economic revitalization that align with the goals of legacy business programs. Additionally, many states also have a small business or entrepreneur office or department that, like at the municipal level, resides in the economic development office. These small business-focused offices could offer additional or more targeted economic support for your program.
Many existing statewide programs, such as low-interest loans for small businesses and small business grants, can be leveraged directly. Other economic support tools, like tax incentives, might take longer or be more challenging to implement if they don’t already exist. You should investigate what programs already exist in your state that could be provided to the legacy businesses in your program. Be sure and involve your municipal and political partners in the process to help you evaluate the tools available to your program, and create the steps and roadmap required to create new tools with the state team.
State Historic Preservation Office (SHPO)
Each US state also has a State Historic Preservation Office (SHPO) dedicated to planning and implementing the state’s historic preservation goals, as well as administering federal preservation programs and funding. Along with evaluating and preserving historic resources, the SHPO partners with municipalities to open historic preservation resources as tools for local revitalization and preservation programs.
If you are looking to expand economic support through historic preservation resources, the SHPO (along with your municipal OHP) is a critical partner. There are currently no pathways through state SHPOs for legacy businesses that don’t reside in historic buildings to be listed on the National Register for Historic Places and receive preservation incentives. To make this possible, your team (including your local OHP) would need to collaborate with the SHPO to develop criteria for recognizing legacy businesses as part of a place's cultural heritage or cultural landscape. This will take some time and effort so it may require a phased approach, but the economic support this could bring to your legacy business program is considerable.
Once you have established new qualifying criteria, your state SHPO could provide economic support tools by adapting or creating a program where state and federal tax incentives can be used through your legacy business program. The SHPO can also be a valuable resource for connecting your municipality and program with grant opportunities, such as Historic Preservation Funds (HPF) or Certified Local Government (CLG) grants (see the Historic Preservation-Specific Economic Support section for more information).
State Nonprofit Resources
Preservation Nonprofits
At least 26 states have a privately-run statewide preservation organization or nonprofit. While none of these programs currently supports legacy business initiatives, they can still be valuable allies for your program and may provide access to funding opportunities.
Resource.
Nationwide Preservation Organization List
Preservation North Carolina maintains a list of current statewide preservation organizations throughout the US.
National Government Resources
US Small Business Administration (SBA)
While most legacy business programs start through local funding, the federal Small Business Administration (SBA) can be a good resource to help kickstart your legacy business program. It provides grants for community organizations that support business growth and development. If you are starting your program through a community nonprofit or economic development organization, be sure to investigate the grants available to you. While the grant program does not mention legacy business programs, framing your program as a community economic development project should help.
Case in Point: The City of Portland is kicking off a legacy business program through its Legacy Business Preservation Study, which was funded in part by an SBA grant.
SBA Grants As Seed Funding for Your Program
The City of Portland is kicking off a legacy business program through its Legacy Business Preservation Study, which was funded in part by an SBA grant.
Case in point.
Once your program is running, the SBA provides economic support resources available to small businesses, like your legacy business owners, nationwide. The SBA's economic support for legacy business owners primarily comes through guarantees to financial institutions that provide low-interest SBA-defined loans for the rehabilitation and expansion of businesses. These loans include a series of SBA 7(a) Loans with individual requirements and loan amounts, the 504 Loan Program for rural small business owners, and the SBA Microloan Program. The issue with these SBA loans is that they are made through intermediary lenders that set their own qualification requirements. This means that legacy business owners who struggle to access traditional forms of capital have no guarantee of accessing these loans. The SBA, however, oversees Community Advantage Small Business Lending Companies (CA SBLCs) that offer access to SBA-guaranteed loans for small businesses that traditional lenders underserve. These loans are generally available through companies like CDCs and CDFIs or other community-based lenders.
Resource: The SBA Vendor Match tool allows you to locate CA SBLCs throughout the US who can be matched to the individual financial needs of your legacy business owners.
Resource.
SBA Lender Match Tool
The SBA Lender Match tool allows you to locate Community Advantage Small Business Lending Companies (CA SBLCs) throughout the US who can be matched to the individual financial needs of your legacy business owners.
US Department of Housing and Urban Development (HUD)
The US Department of Housing and Urban Development (HUD) is the most significant federal agency for community revitalization projects in the US. Although primarily known for housing programs, they can be an instrumental economic driver for commercial districts, especially where small businesses play a vital role in cultural and economic stability and sustainability. HUD does not directly support small businesses or community revitalization organizations, so it is not a primary partner for your program. Instead, they directly fund municipal and regional government programs that you should be aware of to support your program. HUD encourages local governments that use its funding toward equitable revitalization and development and place-based community initiatives through programs like Choice Neighborhoods and Promise Zone, making legacy business programs ideal recipients and partners.
While HUD will not provide funding directly to your program, it is worth talking with your community partners and examining if any local funding resources are available. The most valuable economic resources that HUD provides to municipal governments come from the Community Development Block Grant (CDBG) Program. Municipal and Regional governments with access to these grants can provide a wide variety of economic support to their communities, including to small businesses and your program. CDBG funding is often also available through Main Street programs, offering you another source of funding should a program exist in your area. These programs can provide funding support for legacy businesses for block and façade improvements in commercial districts, code and modernization upgrades, and local grants or loans
National Financial Institution Resources
Banks
While not explicitly targeted at legacy businesses, several national banks have created programs to increase access to capital and economic support for small businesses that have traditionally struggled to access these resources. This support can be leveraged in a legacy business program to provide direct support to businesses through small-business loans or grants. They may also be ideal partners for creating community investment or revolving funds for your legacy business program. Additionally, these banks work with other potential partners on legacy business programs, such as CDCs and CDFIs.
Here is a sample of these banks and their programs:
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Bank of America offers low-cost loans and grants to CDFIs through its Community Development Banking and nonprofits through its Neighborhood Builders program.
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JPMorgan Chase runs the AdvancingCities fund to help city leaders, businesses, and nonprofits with equitable growth. These funds are mainly available through CDFIs, CDCs, and Main Street programs. The Business Growth and Entrepreneurship program provides economic support to community-focused small businesses.
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US Bank’s Community Possible Grant program offers grants to small businesses for training and financial literacy. US Bank also provides grant funding to nonprofits, CDFIs, and Main Street programsNational Preservation Nonprofit Resources
Accion Opportunity Fund
Accion Opportunity Fund (AOF) is a national nonprofit with a mission to “advance economic mobility for underserved small business owners and communities through affordable financial services, knowledge resources, networks, and policy.” AOF operates as both a national-level CDFI and a nonprofit lending institution to help under-resourced small businesses, especially BIPOC-, immigrant-, or women-owned businesses, access capital and sustain their operations. Legacy business owners or building owners can receive low-interest loans from AOF for building or façade improvements or gap financing. AOF also partners with corporate and government partners to provide grant funding to community-focused nonprofits and businesses.
National Nonprofit and Foundation Resources
National Trust for Historic Preservation
The National Trust for Historic Preservation provides grants that sometimes overlap with the goals of legacy business programs. It is worth checking its current programs to see if they align with the goals in your community. For example, they are providing the ongoing Preserve Route 66 Legacy Business Grant, which supports longstanding businesses along the Route 66 corridor with grants of $5,000 to $10,000. The National Trust’s ongoing public-private partnership with American Express, called Partners in Preservation, recently provided $1.8M in grants to commercial spaces that contributed to the history and culture of their communities. Finally, the National Trust’s ongoing African American Cultural Heritage Action Fund provides grants to culturally significant locations, which could include Black legacy businesses.
Main Street America
The nonprofit Main Street America has been collaborating with local leaders, local nonprofits, and grassroots organizations to “create resilient local economies and improve quality of life through place-based economic development and community preservation” in neighborhood commercial districts and downtowns nationwide. Founded over forty years ago by the National Trust for Historic Preservation, Main Street America works with local Main Street initiatives to provide resources, training, and technical assistance to local “Main Street” programs nationwide. Main Street uses a four-part approach with its local partners to focus on community preservation and economic vitality.
For economic support, Main Street partners with financial institutions and corporations to provide grant programs that could support legacy business owners or legacy business programs. For example, the Backing Small Business grant program, a collaboration with American Express, provides grants to “locally significant small businesses” and to community partners who champion them. They also provide a reference that is worth reviewing for external grants and funding that could benefit Main Street initiatives.
Resource.
Main Street Funding Source List
Main Street offers the Federal Funding Sources for Main Streets resource, which lists 25 federal grant programs that could be used for local Main Street programs. Given the overlap, this is also a good resource for legacy business programs.
The Kresge Foundation
The Kresge Foundation is a national foundation that invests in community development (along with arts, health, and culture) in US cities. They provide economic support to community development projects and organizations, including those that help small businesses and preserve cultural identity. Their goal is to build more resilient, equitable, and inclusive inner-city neighborhoods. The Kresge foundation is a good resource for creating and funding community-focused programs, but not specifically legacy businesses. If you tied your legacy business program to a broader cultural initiative (using intangible cultural heritage as an argument), they could be a good parter for resources.
The Kresge Foundation’s primary vehicle for providing economic support to community development programs is the American Cities Program, which awards grants to community nonprofits and organizations aligned with the foundation’s mission. Many of the existing grants focus on community commercial ecosystems and placemaking, closely aligning with the goals of legacy business programs. This funding can help you create a program while also initiating your business retention and cultural preservation projects. You can find more information about their many previous and ongoing grants here.
Kresge Foundation's Anchor Business Grant Program
In 2021, The Kresge Foundation provided a $1.2M grant to the Anchor Business Grant Program, which offered economic recovery assistance to 25 businesses that were considered “anchor” businesses along six inner-city Detroit commercial corridors.
Case in point.
The Surdna Foundation
The Surdna Foundation is a national charitable organization committed to advancing “sustainable communities,” including businesses and commercial corridors. The foundation’s Inclusive Economics program provides grants to organizations that focus on “equitable economic development,” especially in BIPOC communities that often face barriers to accessing capital. This means that if your organization and program support preserving and sustaining legacy and culturally significant businesses in BIPOC communities, the Surdna Foundation is a good resource for accessing grants to start and maintain your program.