Hartford Business Journal: Hartford commits $5M to encourage new neighborhood businesses

Michael Puffer, Hartford Business Journal

Even before Hartford Mayor Arunan Arulampalam took office a little more than a year ago, he heard complaints the city focused too much of its economic development effort in the downtown. 

On Wednesday, Arulampalam answered with a $5 million program that aims to foster small business development along four major arteries cutting through city neighborhoods. 

Owners of vacant commercial spaces along Albany Avenue, upper Main Street, Park Street and Maple Avenue, and entrepreneurs hoping to launch businesses in these areas, can apply for forgivable loans of up to $250,000 to renovate spaces and buy equipment.

The idea is to help subsidize the creation of neighborhood commercial centers, creating gathering spaces and services that improve the quality of life for those neighborhoods, Arulampalam said. 

“It is time for real investment in our neighborhoods that is meaningful, that builds wealth, that builds neighborhoods that are dignified and full of the vibrancy and life of the people who live in those neighborhoods,” Arulampalam said.

Arulampalam’s program allocates $1 million to each corridor, with $1 million more budgeted for technical assistance for the new businesses. He hopes successes will lead to contributions of additional capital from foundations and state government sources.

Applicants could be required to match up to 50% of their grant, as officials want them to have a stake. But officials could require as little as no match, affording flexibility and an opportunity for some who might not be able to afford it.

The size of the required match will be determined by a committee formed by the Arulampalam administration to vet applications. Each corridor will also have an advisory committee of local stakeholders who will determine the types of businesses sought, and in what general spots along these corridors.

Officials hope to begin deploying funds by the close of this calendar year. These will be issued in the form of “forgivable loans” on which applicants will make no payments provided they stay open at least five years and stay current with their city taxes, said Paige Berschet, director of the city’s Small Business Initiatives program. 

After five years, the debt is forgiven.

The city, this week, released pre-applications on its website. These are due April 30, after which city staff will try to match interested landlords with prospective entrepreneurs.

Berschet said the program is open to any small business, but preference will be given to restaurants, retailers and service providers. City residents, women and minorities will also receive preference, she said.

City Council member Amilcar Hernandez, a volunteer on the Maple Avenue neighborhood advisory committee, said he hopes to grow a district that will entice travelers who drive from Wethersfield to downtown Hartford.

“There is so much to offer in the City of Hartford and it’s not just in the downtown,” Hernandez said.

Yvon Alexandre, owner of the ACA Uptown Foods market on upper Main Street, said this program is the first investment he’s seen in his neighborhood in 30 years.

“So, I would like to give it to the mayor for putting this together so there are investments in the neighborhood,” Alexandre said. 

Read the original article here.