The Affordable Commercial Tenanting (ACT) Grant provides funding to property owners and small business owners who are in the process of negotiating a lease.
Donor Name: Prosper Portland
State: Oregon
City: Portland
Type of Grant: Grant
Deadline: All Time
Size of the Grant: $100,000 to $500,000
Grant Duration: Grant Duration Not Mentioned
Details:
The program is intended to facilitate access to commercial space and support inclusive business growth. Grant funds are reimbursement-based, and may be used for tenant improvements, space-related soft costs, and permitting support to ready space to open for business. Technical assistance may also be available for business support.
Prosper Portland will provide funds for real property improvements in ground floor commercial properties, and opportunities for local business owners to connect to technical assistance to foster business growth and wealth creation. Grant awards will take into account the rent discount the property owner provides and tenant improvement subsidy needed.
Funding Information
Awards will not exceed $300,000.
Eligible Expenses
Grant funds will be issued on a reimbursement basis to pay for:
- Hard costs to ready the space for leasing (referred to in the Property section, above) and other tenant improvement-related costs including but not limited to signage, landscaping, lighting, security upgrades
- Up to $25,000 can be used for soft costs including design, architectural and engineering services, permitting fees, and project management
- Up to $25,000 can be directed toward predevelopment work, including architectural services, structural engineering, and environmental, market, or financial analysis associated with physical construction
Eligibility Criteria
Eligible Property Owner: a private entity or a community based organization that leases to a qualified small business
Property Owner
- Property must be located within the Interstate Corridor or Gateway Regional Center Tax Increment Financing districts.
- Property owner must own a commercial space that shall be delivered in warm shell standard to support move-in readiness. Warm shell standard shall include elements such as: finished HVAC system, drywall, flooring, ceiling, basic plumbing, electrical with outlets, lighting, and approved according to City of Portland building code requirements. A portion of the grant funds may be used to cover expenses to bring the space to this standard, but the majority of funds must be used for tenant specific improvements. If additional funding is needed to bring space to a warm shell standard, Prosper Portland may have other grant or loan programs available, pending eligibility.
- Property must be at ground floor level.
- Property must be zoned for commercial/mixed use.
- Property owner must have a maintenance plan in place for the duration of the lease.
- All financial obligations related to the property must be current, including taxes and debt payments.
Lease Terms:
- Lessor must agree to provide a lease agreement for a minimum of three years to qualified business owners who fulfill the eligibility criteria.
- Lease agreement(s) must provide for at least one of the following: a lease rate that is 10-25% below market rate of a comparable property, a period of rent abatement, and/or capped rent escalations during the affordable rate period with the intent of stepping up towards a market rate.
Business Owner
Business owner must identify with one or more of the following criteria:
- Their business or residence was displaced by urban renewal, or the business owner has generational ties to such displacement due to urban renewal;
- The business owner has limited access to employment opportunities or capital and/or has not benefited from generational wealth;
- The business owner is a first generation business owner and/or first-generation college graduate; and/or
- Their business or home address is within a Census Tract scoring at an Income Threshold of 100
Applicant must demonstrate business experience of two or more years in one or more of the following ways:
- Previous experience in their industry through pop-up shops, markets, trade shows, etc. with the concept they are bringing to market with this new location.
- Experience with a mobile business, such as a food truck
- Local business owner who previously had a business in the area but closed due to displacement or lack of access to capital; or
- Local business owner with a proven concept who is looking to expand into a second location.
Eligible Property:
Applicant must have or be in the process of securing a lease that meets the criteria under Eligible Property and Lease Terms, above.
For more information, visit Prosper Portland.
