Broome County launches new grant program to help small businesses

BINGHAMTON, N.Y. — Small businesses are often overlooked when it comes to funding programs, and Broome County is hoping to change that with its new Broome County Small Business Development Grant program. Representatives of the county and The Agency, which will administer the program, announced it on June 4. Fueled by $500,000 in American Rescue Plan Act (ARPA) funds, the program will provide one-time grants of between $5,000 and $50,000 for businesses with 200 or fewer employees. It’s a reimbursement grant program, which means the businesses must first spend the money and then request reimbursement. The grant funds will cover initiatives including purchasing furniture, fixtures, machinery, equipment, or real estate along with real-estate improvements and working-capital needs for things like inventory, payroll, and other operational expenses. Sole proprietors are eligible if the grant could result in the expansion of their product or service. “Small businesses are incredibly important to Broome County,” County Executive Jason Garnar said at a June 4 press conference that was also livestreamed on The Agency’s Facebook page. “Small businesses also need this kind of help.” Those businesses are still working to recover from the pandemic and are struggling with the current high interest rates that make borrowing prohibitive. “I think this program is going to help fill in some of that gap financing,” Garnar said. Applications for the grant program opened on June 5, and funds will be awarded on a rolling basis as the applications are approved. Applicants must provide supporting documentation, and the Broome County Local Development Corporation board will review all applications. The Agency, which administers the program, is the lead economic-development organization for Broome County and governs both the Broome County Industrial Development Agency and the Broome County Local Development Corporation. Some of the criteria for evaluating applications includes how the project will help the business expand its operations or services, the number of jobs the funding would help create or retain, project readiness, and the eligibility of expenses. The program is for established businesses and prioritizes businesses that employ low-income to moderate-income workers, minority and women-owned enterprises, veteran-owned businesses, and businesses located within low-income rural communities. The vetting process will include a look-back at several years of financials, Duncan noted. Recipients must maintain or add at least one full-time position. “We know how important it is to be able to have those funds to grow your business,” said Stacey Duncan, CEO of the Leadership Alliance, which includes The Agency. “Costs are high, and we have to do what we can.” Garnar said using ARPA funds to launch the program just makes sense as many small businesses are still struggling to recover, and the money is there to help. “It’s a really good use of the funds,” he said. Unlike a loan program, the funds won’t be replenished, he noted, but The Agency and the county will evaluate the response to the program and assess whether some sort of continuing program is warranted. “We think there is a lot of need for a gap program like this,” Duncan said. Many small businesses don’t have access to grant opportunities, Broome County Legislature Chairman Daniel Reynolds said. That’s why it was important the program did not include a matching funds requirement. “Sometimes that’s a barrier to small business, too,” he said. Businesses have put off projects because they don’t have funds available, he said, and a matching component would be a deterrent. The goal of this program is to make it possible for small businesses to take the next step necessary to either grow or to just be able to continue operations, Reynolds said. Ultimately, the hope is that the businesses participating will be able to grow and add jobs. More information about the new grant program and the application are available on The Agency’s website at theagency-ny.com/economic-development-resources.