Commerce department outlines FY2026 budget and $30 million JumpStart plan as council considers ending $100,000 BIRT exemption

Alba Martinez, the city’s director of commerce, testified to the Committee of the Whole about the Department of Commerce’s proposed fiscal 2026 operating budget and a package of business supports the administration calls GrowPhilly.

Martinez told council the department is launching a JumpStart small-business initiative and a separate $5 million Catalyst fund to expand access to capital and technical assistance, and that the overall FY26 request includes new resources to grow small-business supports and corridor investment ahead of 2026 events. “We are implementing a strategy we call Grow Philly to make it easier and more attractive to start, operate, and grow a business in Philadelphia,” Martinez said.

The testimony came as council members discussed a possible removal of the existing exemption for the first $100,000 of receipts from the Business Income and Receipts Tax (BIRT). Council President and others flagged that change during budget debate; Commerce staff described a multiyear package intended to help businesses adapt.

Why it matters: council consideration of removing the first-$100,000 BIRT receipts exemption would require many small businesses to begin filing and paying BIRT for the first time. Commerce officials told council they expect the city to deploy targeted aid to reduce harms and support business continuity.

What Commerce said - Martinez highlighted several programs the department intends to expand or launch: a JumpStart initiative totaling roughly $30 million over the first year of operation for education, capital, and technical assistance; a $5 million Catalyst fund targeted at growth-ready firms and business property purchases; and an expansion of the Taking Care of Business (TCB) corridor maintenance program from $10 million to $24 million. - Martinez said Commerce’s business-service staff and the Mayor’s Business Action Team (MBAT) helped more than 5,000 businesses in the prior year and that new tools such as a Permit Navigator and a forthcoming “Philly Biz Hub” website will centralize permits, licensing, education and capital resources.

Projected scale and outreach Deputy Commerce Director Yvonne Boyd told council the department estimates about 75,000 entities previously exempt from filing BIRT may now have to file, and that approximately 56,000 of those are not real-estate firms. Boyd said the department expects to directly serve roughly 11,000 businesses per year with the $30 million program through a combination of grants, technical assistance and capital support, while broader education and outreach will reach many more.

“We have about 75,000 businesses who previously did not have to file for the BIRT who now will have to file,” Boyd said. “Based on the programs that we’ve decided to deploy the $30,000,000 in, we will serve about 11,000, a little more than 11,000 businesses, in the first year.”

Commerce officials described several elements intended to reach businesses that may not currently file city taxes: coordination with the Revenue Department for education and outreach, an MBAT phone line and business-service managers, targeted communications in multiple languages, and an expansion of staff capacity for direct assistance.

Funding mix and program priorities Commerce staff said the JumpStart dollars will be directed to programs that already have demonstrated results and to pilot innovations such as the Catalyst Fund and a single-application process for capital. Martinez noted the city is also proposing targeted general-fund increases to support marketing, corridor beautification and business technical assistance.

Other programs and metrics mentioned - Taking Care of Business: expanded from $10 million to $24 million; TCB currently employs 324 cleaning ambassadors across 39 nonprofit partners and Black-owned businesses and is slated to expand to 52 partners with more than 400 ambassadors. - Philadelphia Business Lending Network: Commerce said its incentive grant program has helped more than 100 businesses secure loans from 30 lending partners, and that 70% were first-time borrowers. - A new Philly Biz Hub website and Permit Navigator are due to launch to centralize permitting and assistance.

Council concerns and staff responses Several council members asked how the department will ensure the JumpStart funds go to the businesses most affected if the BIRT exemption is removed, how Commerce will staff up to handle demand, and whether the $30 million will be sufficient. Martinez and deputies emphasized a mix of marketing, outreach, direct assistance and vetted capital awards.

Martinez identified Heloise Jettison, Commerce chief of staff, and Frank Nasir, Commerce finance director, as contact points for council on program continuity during leadership transition. Commerce repeatedly emphasized a “no wrong door” approach to help businesses find the right resource or staff person.

What remains unclear at the hearing Council members pressed for district-level data on the 75,000 businesses Commerce expects to be newly required to file and for a precise, auditable breakdown of the $30 million allocation. Commerce said it would provide more detailed, written materials to council.

Outlook and next steps Commerce said outreach and pilot launches will begin immediately, including a single-application pilot for Catalyst and the Philly Biz Hub website. Council members signaled they expect written program breakdowns and district-level business counts before final budget votes. Commerce said it will continue working with council, Revenue and community partners on education, tax-prep assistance and capital access.

Ending note “Bottom line, we’re making it easier for businesses to start, stay, and grow right here in Philadelphia,” Martinez said, urging council to view the department’s proposed investments as both response and opportunity as the city evaluates tax policy and FY26 appropriations.