Portland City Council targets small business funding through grants and loans

During the recent Portland City Council Work Session on May 14, 2025, discussions centered on the allocation of Community Development Block Grant (CDBG) funds and the importance of supporting small businesses in the community. The meeting highlighted a growing concern among council members regarding the need for financial assistance to local businesses, particularly those owned by individuals earning less than $100,000 annually.

One of the key proposals discussed was the amendment to include both grants and loans in the funding strategy. Council members emphasized that while loans are essential, there is a pressing need to provide grants to small businesses, especially in light of the economic challenges posed by the COVID-19 pandemic. The conversation pointed to the necessity of using CDBG funds effectively to support these businesses, which often struggle to access traditional financing options.

The council noted that the total CDBG allocation for the upcoming fiscal year is approximately $8.3 million, with a portion designated for housing initiatives. However, there was a call for a more significant investment in small business support, with suggestions to allocate an additional $5 million specifically for this purpose. The discussions underscored the importance of providing technical assistance to small business owners to help them navigate the complexities of securing funding and achieving COVID certification.

Additionally, the council highlighted successful initiatives, such as the SIF (Small Investment Fund), which has enabled local businesses, including the city's first indigenous-owned restaurant, to secure loans that would otherwise be unavailable. The emphasis on trust-based philanthropy models was also noted, as these approaches have allowed for more direct financial support to small businesses and nonprofits.

As the council moves forward, the focus remains on ensuring that resources are directed to those who need them most, with plans to distribute $1.3 million in the next funding cycle, primarily aimed at small businesses. The discussions reflect a broader commitment to fostering economic opportunity and resilience within the community, particularly for those who have been disproportionately affected by recent economic challenges. The council's next steps will involve finalizing the budget allocations and continuing to evaluate the effectiveness of these funding strategies in supporting local businesses.