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Josephine CDC approves two $1,000 startup grants pilot, requires service to ETJ and IRS tax ID

Josephine Community Development Corporation · August 26, 2024
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Summary

The Josephine Community Development Corporation approved a pilot program to award two $1,000 grants to brand-new startups after hearing a presentation from the Josephine Area Chamber of Commerce. The board required that winners serve Josephine’s ETJ (extraterritorial jurisdiction) and hold an IRS tax identification number; the motion passed unanimously and will go to city council for final approval.

The Josephine Community Development Corporation on a unanimous vote approved a pilot program to award two $1,000 grants to very new startup businesses, following a presentation from the Josephine Area Chamber of Commerce.

Pam, representing the Chamber, said the proposal is a small, early-stage effort to help entrepreneurs launch and grow: "We're just asking — we're dipping our toes in the water where we've never been before," she said, describing application criteria, mentoring and reporting expectations.

Under the proposal, applicants would be eligible if they were not yet registered with the Texas Secretary of State or had registered only after October 1; the recommended application window was November 1–30, with award notifications by Dec. 15 and a targeted operational kickoff around Jan. 1. The Chamber proposed a selection committee composed of two local business leaders (one of whom could be a city council member) and three Chamber board members and pledged mentoring for awardees.

Several board members pressed for geographic limits and fiscal safeguards. One board member said all JCDC funds come from Josephine taxpayers and asked that awards either be tied to businesses located in Josephine or to those that demonstrably serve Josephine residents. Pam said the Chamber could revise eligibility to the city limits or the city’s ETJ if the board preferred.

The board also discussed verification and oversight. Members asked that recipients show formal business legitimacy; the board agreed to an addendum requiring that selected grantees demonstrate an IRS tax identification number. The presiding officer moved to approve the Chamber proposal with the ETJ/service requirement and the tax-identification stipulation; the motion passed unanimously and will be forwarded to the city council for its consideration.

Next steps: the Chamber will refine application language to reflect the board’s stipulations, and the board asked for the Chamber to report back on award outcomes (the Chamber had proposed semiannual reporting).