A new grant program is designed to help small businesses get started and succeed in downtown State College.
Downtown State College Improvement District and the State College Redevelopment Authority are partnering on the Retail Launch Assistance Program, which will provide dollar-for-dollar matching funds up to $15,000 for approved for first-time retail businesses or small businesses that are newly relocating to the downtown.
Funding, which is provided by the Redevelopment Authority and administered by DSCID, can be used for early-stage professional services, including design, contracting and permitting, along with two years of professional guidance from industry experts in architecture, engineering, legal compliance and leasing.
“This program fills a critical gap for first-time business owners navigating complex regulations and buildout processes,” Ed LeClear, State College planning director, said in a statement. “RLAP gives entrepreneurs a solid foundation to succeed.”
Eligible applicants must provide proof of local residency, submit a viable business plan with financial projections, match grant funding and commit to operating downtown for at least two years. The business location also must be within the boundaries of the DSCID, which extends from Atherton Street to Sowers Street between College Avenue and Highland Alley.
Funding for program participants would be disbursed directly to the providers they use for the needed services.
Kendra Kielbasa, DSCID retail and commercial business advocate, said at a Redevelopment Authority meeting in April when the grant program was under discussion that complexity and costs that go into opening are among the biggest challenges that first-time businesses can face before they can even open their doors.
“One of the challenges that businesses have, for first-time businesses coming into the area, is the barriers that are created by the complexity of permitting, code, architectural, engineering design,” Kielbasa said at the time. “These are some real challenges, and I have observed businesses really struggle with that… More often than not, it’s really that small, first-time business owner that’s going into brick-and-mortar space.”
DSCID Executive Director Lee Anne Jeffries credited Kielbasa for her “thoughtful, swift work” in recognizing the challenges and developing the grant program, as well as the Redevelopment Authority for supporting it.
“This initiative deepens our impact on the business community and strengthens the vitality of our downtown by removing barriers for entrepreneurs looking to plant roots in State College,” Jeffries said.
Applications will be reviewed on a rolling basis until funding is depleted by a panel of local and regional experts and will be scored on criteria including business viability, financial preparedness, readiness and commitment, community impact and sustainability and vision and values.
Grant recipients will be required to provide quarterly financial reports for the first 12 months, participate in quarterly review meetings and take part in a post-program review to assess impact and success.
“We’ll have a team that’s not only reviewing the applications, but also with me at that quarterly report,” Kielbasa said in April. “Where are their challenges? Where can they use some support? If they need help with marketing, I’m going to connect them to marketing services. If they need some mentoring, I’m going to connect them to that. One of the things I’m already doing a lot of is connecting businesses to resources. If I can’t provide it, if you don’t have the expertise, we are making those connections.”
Interested business owners can review guidelines and apply through the DSCID website.
“The RDA is proud to invest in a program that aligns with our mission of fostering economic growth and revitalization,” Redevelopment Authority Vice-Chair Mark Huncik said. “By supporting new retail businesses from concept through opening, RLAP strengthens downtown as a dynamic, diverse and thriving economic center.”
Professional service providers, including architects, engineers, contractors and attorneys, who are interested in helping entrepreneurs launch and grown in downtown State College are encouraged to contact Kielbasa at kendra@downtownstatecollege.com.
The RLAP is one of several initiatives that DSCID has undertaken to support local businesses downtown. In addition to consultations with existing and prospective business owners, making connections with resources and efforts to activate vacant spaces, the DSCID partnered with Comet Properties starting last year on a Calder Way Pop-Up space.
The pop-up space at 236 E. Calder Way has created a location for rotating retail vendors to sell their products and test the brick-and-mortar environment.
The program has already seen one major success story. After operating a pop-up shop last fall, proprietor Lisa Farren opened the new clothing and gift shop Town Pride State College in April at a more permanent space next door at 240 E. Calder Way.
