Two dozen Boston-based small businesses are receiving grants of $40,000 and up that city officials hope will awaken a sleepy downtown and bolster commercial districts in other neighborhoods.
A goal behind the program is to close the city’s racial wealth gap.
Three quarters of the 24 selected businesses in the first round of funding are minority-owned, and more than 60% are women-owned, officials highlighted Wednesday.
Many small business owners are either looking to launch their first brick-and-mortar space or expand current operations to neighborhoods like Downtown Crossing, Back Bay or the Seaport, said Segun Idowu, the city’s chief of economic opportunity and inclusion.
“Many (business owners) have been losing hope, particularly as a result of COVID-19,” he said. “What we are proud of is this is a program that seeks to stave off that tragedy.”
Officials are tapping $9 million from the city’s $551.7 million federal American Rescue Plan Act allotment towards the program. The first round received $2.8 million, with grants ranging from $40,000 to $200,000 over three years.
Businesses will receive “wrap-around services,” such as assistance with lease negotiations, accounting, regulatory compliance, marketing and more, officials say.
The Downtown Boston Business Improvement District is helping businesses find vacant storefront spaces to move into, while identifying landlords who may be interested in taking in their services, BID President Michael Nichols said.
“This neighborhood will be one that will be greener, more active,” he said. “It will be filled with arts, culture, programming and small businesses that reflect the tremendous diversity of Boston.
While the focus of this program is to enhance Downtown Crossing, Mayor Michelle Wu said it’s essential not to lose sight that business owners may be looking at other city neighborhoods.
“There has to be a lot more flow going in both directions,” the mayor said.
The Dorchester Food Co-op, owned by employees and more than 1,600 residents from across the city, is receiving a $50,000 grant. Officials say the store will open sometime next month but they have not announced a definitive date.
“As we open the store, and until our sales start to catch up, this grant will support the operating expenses in the early years of the co-op,” board treasurer Jenny Silverman told the Herald.