City increases funding for its small business program

By Chris Fortune

Small businesses will have double the amount of federal funding they can apply for within the city to help expand their operations compared to last year.

St. Joseph will use more funding from the U.S. Department of Housing and Urban Development for its Small Business Job Creation Program. The city allocated $100,000 for the program this fiscal year, and it will increase to $200,000 in the upcoming fiscal year set to begin on July 1.

About $20,000 is left from this year’s funding, and it will roll over into next year’s budget for a total of $220,000.

“This (city) council has an emphasis on working with small business, and helping to stimulate local businesses, and creating jobs,” he said. “And so, they’ve increased the amount of funding allocation for the particular program to reach more businesses and try to attract more investment in our commercial corridors.”

The city has worked with five businesses that have received reimbursement grant funding in the past year. Businesses can apply for a minimum of $5,000 to a maximum of $40,000 for the purchase of equipment used for job expansion. For every $10,000 given to a business, it must create a full-time job.

“We want to help incentivize those small businesses that are looking to operate in a vacant commercial location or help expand their existing business,” Thompson said. “And through these grant dollars, we can help lower the cost of doing that expansion or open a new business.”

Applications for the program are currently closed, but they are expected to open in July on the city’s website once the funding is formally approved in its annual budget.

Thompson said the city will work with the Chamber of Commerce to help advertise the funds.

“We’re really trying to get the word of mouth out to make the program as successful as possible,” he said.