The City of Cortland is accepting applications for Microenterprise Assistance Program to assist small businesses with 5 or fewer employees, including the owner.
Donor Name: City of Cortland
State: New York
City: Cortland
Type of Grant: Grant
Deadline: 02/20/2023
Size of the Grant: $35,000
Details:
The owner, or new hire(s), must have low-to-moderate incomes. Funds may be used for equipment, inventory, working capital, and other uses.
The purpose of the Microenterprise Program is to provide resources to support and foster the development of microbusinesses by providing grants in conjunction with capacity building and entrepreneurial assistance”. Specifically, the Program seek to provide training and financial assistance to entrepreneurs, start-up businesses, and existing businesses that will create opportunities or jobs for persons who are low-to-moderate in income. The Program is especially interested in assisting entrepreneurs who are low-to-moderate income persons and do not have access to other sources of capital.
Priorities
The City may prioritize assistance to businesses located in the City’s central business district;
- owned by veterans with military service;
- that have been in operation six months or less at the time of application;
- owned by LMI persons; and/or
- that intend to use all or a majority of funding for hard assets.
Funding Information
The total amount of assistance available per project is $5,000 to $35,000.
Eligible uses of Funds
Funds can be used
- to purchase machinery, equipment, furniture and fixtures including, but not limited to, manufacturing, processing, or display equipment; computer hardware; office furniture, display fixtures, or other equipment/fixtures that directly support the business activities of the applicant. All machinery, equipment, furniture, and fixtures acquired with City funds shall be stored and used at the business’s primary City location and will be secured by the City via a UCC filing;
- to acquire real property after consultation with the City. Acquisition of real property is discouraged in most cases;
- for working capital purposes (“soft costs”). The specific use(s) of working capital must be detailed in the application;
- to purchase inventory. The general type and amount of inventory must be detailed in the application. The City reserves the right to file a UCC lien on the business and its assets including inventory purchased and replacements therefore;
- to purchase software that is specifically related to the business activity of the applicant. The City reserves the right to file a UCC lien on the business and its assets;
- for other uses, not specifically noted above, deemed appropriate by the City, and determined to be eligible by the funding source.
Location of Project/Business
To be eligible for assistance the microenterprise must be located in the City of Cortland, and the business location must be zoned appropriately for the proposed use.
Eligibility Criteria
- At the time of application, a business must consist of five or fewer persons including the owner(s). To meet the “five or fewer” test, the City will look at the total headcount at the time of application, regardless of the number of hours worked by the owner(s) and its employees.
- The project must meet a low-to-moderate income test; that is, either the owner(s) must be low-to-moderate in income based on family size and gross, annual income; or the project must result in the creation of jobs, the majority of which meet the low to-moderate income test. The City will make this determination with information provided by the applicant
- Not-for-profit entities are not eligible for the Program.
Conditions of Eligibility
- If a business is owned or started by a person that meets the LMI test, they may not have to create jobs. The exception is for repeat applicants that received funding under a prior grant or Program. If additional funding is provided, the LMI person will have to create at least one full-time or full-time equivalent (FTE) job regardless of their income status. When in doubt, please ask.
- If the owner(s) is/are not low-to-moderate in income, they will be required to create at least one full-time, or full-time equivalent, permanent job. Jobs that require 40 hours a week are considered full-time jobs. This requirement can also be met by creating two part-time jobs at 20 hours per week. Jobs must be available to LMI persons pursuant to a program definition
- All City payments including, but not limited to taxes and water and sewer charges, must be current for the business as well as the business owner(s) (i.e. taxes and fees on personal residence, if in the City, etc.).
- All applicants must have a current business plan that clearly identifies the microenterprise project. Assistance preparing a business plan can be provided free of charge by the Small Business Development Centers (SBDC) at Onondaga Community College (OCC) or SUNY Binghamton. SBDC representatives from OCC will meet with applicants in Cortland by appointment. Contact the Cortland Business Development Corporation at 756-5005 to set up an appointment.
- Existing businesses must demonstrate how the use of microenterprise funds will result in increased profitability and/or provide a new service or product that creates additional revenue.
For more information, visit Microenterprise Assistance Program.
