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Harrisonburg approves 29 small-business grants through new entrepreneurship initiative
Summary
The EDA approved distribution of 29 grants (mostly $2,500) from a new entrepreneurship program (HETI) funded by city budget dollars and potentially augmented by National League of Cities grants.
The Harrisonburg Economic Development Authority on June 10 approved the distribution of 29 small‑business grants under the newly created Harrisonburg Entrepreneurship Development Initiative (HETI).
Pierce McGill, deputy director of economic development, said the program pairs technical coaching with a modest grant to encourage early‑stage entrepreneurs to complete training. "We call it HETI because we have to have acronyms in government," McGill said during his presentation. The program was seeded with $100,000 allocated in last year’s city budget; the packet before the EDA included grants for 29 businesses (the program budget covered 30 but one participant dropped out).
McGill told members the city issued an RFP and received 33 responses, the largest response the department had seen. Staff selected a firm called EQ All (a Texas‑based provider) to supply a diverse bench of coaches. Participating entrepreneurs meet one‑on‑one with coaches for one to two hours to select a focused subject area (examples given: financial management, marketing, social media) and then receive about five to seven hours of subject‑matter training. Grants were used as an incentive to improve attendance; staff told participants missed meetings could reduce grant amounts by a fixed deduction.
Program results and demographics presented to the EDA: 29 businesses completed the cohort; 19 are women‑owned and 16 are minority‑owned. Most grants are $2,500; three awards were for smaller amounts. McGill said post‑program surveys returned strong positive feedback and the city allocated $62,000 in next year’s budget to continue the initiative. Staff also said Harrisonburg has received a $15,000 planning award from the National League of Cities and could pursue a later $50,000 implementation grant to expand outreach.
Legal context: staff briefed the EDA that, under Virginia law, city council cannot directly make grants or gifts to individual businesses but can allocate funds to an industrial/economic development authority to carry out economic development grants. The EDA’s role in administering the HETI grants was described as the legally appropriate conduit for the city funds.
A motion to approve the dispersal of HETI grants carried by voice vote; the meeting minutes record the motion as approved unanimously. Members asked about outreach, whether staff could provide more information about individual grantees for board members interested in supporting them, and about timing for the next cohort (staff said recruiting would likely begin in the fall with a launch around November–March planning cycle).
