The city of Portland is launching an $800,000 grant program aimed at helping grocery stores, restaurants and retailers move into vacant commercial spaces by reimbursing a portion of the cost of tenant improvements.
Mayor Keith Wilson announced the Vacant Storefront Grant program in partnership with Prosper Portland. The program will reimburse up to 75% of eligible project costs for businesses that lease vacant street-level storefronts within the city.
Maximum awards are $100,000 for eligible grocery stores, $50,000 for restaurants and $25,000 for retail businesses.
“Today we’re making it easier for small business owners to open a storefront anywhere in Portland,” said Wilson. “Tenant buildout costs are one of the biggest expenses that new business owners face – that’s why my office has worked with Prosper Portland to launch the Vacant Storefront Grant program. I’m grateful to Executive Director Wesley and the Prosper Portland team for their hard work to stand up this grant quickly, and I want to thank Councilor Ryan for his work on the Storefront Support Program, which helped highlight this need.”
The program is funded with $800,000 in one-time City of Portland General Fund dollars through an intergovernmental agreement with Prosper Portland. Applications will be accepted on a rolling basis, with grants awarded on a first-come, first-served basis until the funding is exhausted.
Eligible businesses must have secured a lease with at least three years remaining to occupy a vacant street-level storefront. The lease must have been secured within the past six months.
Business owners must also hold a City of Portland business license and be registered with the state of Oregon. Applicants must be current on financial obligations related to the property and in good standing with Prosper Portland on any existing financial obligations.
The program is open to grocery stores, restaurants and retailers, as well as property owners leasing space to eligible businesses.
For grant purposes, grocery stores are defined as businesses occupying more than 5,000 rentable square feet and selling household products, packaged foods, bulk foods, produce or meat for home consumption. Grocery stores occupying 5,000 square feet or less are treated as retailers and are eligible for the lower retail grant amount.
Grant funds may be used for eligible physical improvements as well as certain consulting and professional services tied to improvements on commercial, industrial and mixed-use properties.
Councilor Dan Ryan said the program could help reduce the number of vacant storefronts while giving local entrepreneurs support in getting businesses open.
“This type of storefront support is vital, both for entrepreneurial Portlanders with bold ideas and anyone who wants their community to be active and vibrant,” said Ryan. “I’m so pleased that this resource will be available to local business owners—they truly need the support, and we all benefit when Portland’s business environment is thriving. Here’s to fewer “for lease” signs and more activated storefronts!”
The grant program is structured as a reimbursement, meaning businesses must complete eligible project work in accordance with their grant agreement before receiving funds.
The city says the program is intended to address one of the major upfront costs businesses face when opening in an existing commercial space. Tenant improvements can include construction and other work needed to adapt a storefront for a particular business, from restaurant buildouts to retail improvements and other property-related changes.
Cornell Wesley, executive director of Prosper Portland, said the program is intended to complement existing tools available to commercial tenants.
“This program will help strengthen Portland’s commercial districts, increase business activity, and create more vibrant neighborhoods,” said Wesley. “Combined with our existing suite of resources for commercial tenanting, this grant will help local businesses start, stay, and grow in Portland.”
Additional eligibility rules apply to franchises and businesses with three or more locations. Those businesses must be locally owned, and the owner must reside in Portland.
Grant awards made through the Vacant Storefront Grant program will also count toward maximum awards available through Prosper Portland’s Prosperity Investment Program.
Because the program relies on one-time funding, the $800,000 will remain available only until all grant funds have been awarded.
