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Economic Development Department | 389 Congress Street | Room 308 | Portland, Maine 04101 | 207-874-8683

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business assistance program for job creation

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Application Guidelines

Description

The City of Portland’s new Business Assistance Program for Job Creation offers grants to new and expanding for profit Portland businesses for projects that result in the creation of permanent net new jobs. A private match is required in an amount that is at least equal to the grant requested.

Objectives

• At least 51% of jobs created go to low/moderate income (LMI) Portland residents;
• Assist in new business formation and existing business expansion;
• Leverage private investment to support business growth;
• Help new and existing small businesses establish credit.
• Enhance the health and vitality of Portland’s economy.

Financial Terms

• Maximum Grant: $10,000
• Amount of Match: Equal to or greater than grant amount
• Match Sources: At least 50% applicant cash equity; the remainder may include a bank or credit union loan or, if not accessible, a loan from the City of Portland’s Revolving Loan Program.

Program Requirements

• Create one (1) full-time job (33+ hours/week) for every $10,000 of grant funding;
• All new jobs must be marketed/made available to LMI Portland residents, resulting in at least 51% of the jobs going to LMI Portlanders. Low/moderate income is defined as 80% of the median household income (see attached guide);
• Job creation should occur within one (1) year of the grant award. Each grant recipient will be required to provide a payroll register at time of grant award. Job reporting will then be required at 4-month intervals until the required number of jobs is created. Afterwards, reporting is on a quarterly basis for the first year and then annually for a period of five (5) years past the grant award.
• All construction projects over $2,000 will be required to provide a defined scope of work and comply with Davis Bacon federal labor standards, environmental laws (and undergo an environmental review with historic preservation), lead based paint regulations, equal opportunity laws and other applicable federal requirements.
• Projects greater than $25,000 must be formally bid and publicly advertised. Projects less than $25,000 must receive three viable quotes. Selection must be to the lowest viable bidder.

Eligible Funding Activities

• Renovation, improvement, reconstruction or restoration of vacant, under-utilized or deteriorated space; building modifications to enhance accessibility to elderly or handicapped persons;
• Purchase of equipment and machinery;
• Leasehold improvements;
• Permanent working capital;
• Up to $1,000 of project funds may be used for business consulting services (e.g., accounting, marketing, software training, legal assistance).

Ineligible Activities

• Refinance existing debt;
• Down payment for other financing;
• Activities commenced or completed prior to program funding approval.

Grant Award Priorities

Applications that include one or more of the following will receive higher priority for funding:
• Job training - teaching a new skill(s) as initial component of job creation;
• Business location - Located in, within walking distance of, or accessible by public transportation to an HCD eligible area. (HCD eligible areas in Portland can be found at the following link: http://www.portlandmaine.gov/planning/eligiblehcdareas.pdf
• Match exceeds the grant amount requested;
• Number of jobs created will exceed 1 per $10,000 of grant funding;
• Financial stability of applicant (based on financial statements, tax returns, credit report, etc.);
• Quality of jobs created (for example, salary/hourly rate exceeds minimum wage);
• Likelihood that all jobs will be filled by LMI residents of Portland.

Basic Program Qualifications

• Business must be located within the City of Portland;
• Applicant cannot owe outstanding property taxes, fees or judgments to the City of Portland and property must be free of all City liens and encumbrances.

Reporting and Tracking

• Jobs: Jobs must be created within one year and maintained for five years. Grant recipients will be required to provide quarterly reports until all hires proposed in the grant application are made, then report annually on these jobs for 5 years. If the jobs are not maintained for that period of time the grant recipient may be required to repay the City a portion of the grant amount.
• Property: The City will retain an interest in property improved or equipment purchased with the grant funds for up to five (5) years. If such property improvements or equipment are transferred, or otherwise disposed of within the five (5) year period from the date the improvements are completed or equipment is purchased, respectively, the City may require partial repayment (on a pro rate basis) of the grant funds.

Application and Approval Process
Applications are being accepted beginning May 22, 2012.

Submit applications with requested attachments to the Economic Development Division, Room 308, City of Portland, 389 Congress St., Portland, ME 04101. The Portland Development Corporation has final decision-making authority for approving grant awards.