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PDC approves 10 job-creation grants to local businesses, tightens eligibility and reimbursement rules
Summary
The PDC voted to award ten $10,000 job-creation grants to Portland businesses under a program requiring job creation (or conversion) within nine months, reimbursement of eligible costs on a 50/50 match basis, and outreach to low/moderate-income tracts.
The Portland Development Corporation approved awards to 10 small businesses under its job-creation grant program and described stricter process safeguards after staff identified attempted fraudulent applications.
Nancy (PDC staff) reviewed the program design: grants available in $10,000 increments (applicants could request $10,000 or $20,000) and required the creation of one full-time job or two part-time jobs per $10,000 requested. Eligibility requires the business to operate in Portland within or adjacent to a qualifying low-income tract (as determined by the Community Development Block Grant mapping), to meet Portland’s minimum wage requirements, and to have no outstanding property taxes or fees to the city. The PDC budgeted $100,000 for the program and received $105,000 in requests from eligible applicants.
To spread funds more widely, staff recommended limiting awards to $10,000 per applicant. The board approved the staff recommendation and voted to award grants to the following businesses as recommended by staff: Bellflower Brewing Company; Luna LLC; 2 Fat Cats; Surly; Hunt and Alpine; Kongtobot; Polish (new nail salon); Driscoll Child Care; Burundi Star Coffee; and Salud Studios. Nancy said underwriting and evaluation prioritized career potential, demonstrated need/leverage, and compensation/benefits for new hires.
Nancy also told the board that staff had found what appeared to be attempted fraud among a subset of online applications: some submissions used the same email address previously associated with an ARPA microenterprise grant application that never resulted in a signed agreement. "It is attempted fraud, as far as I understand," Nancy said, describing steps staff took to verify applicants, including phone calls and comparing names to company websites.
Board members asked whether grantees must hire before reimbursement and how long they must retain jobs. Nancy said awards are reimbursement-based with a 50/50 match; grantees must provide receipts and proof of eligible payroll or other expenses to receive reimbursement. The program follows the job, not the employee: businesses have nine months to create the job and may continue to receive reimbursement if they backfill a vacated position.
The board moved and approved the list of 10 awardees in a single motion. Staff will return with formal agreements and monitor proof-of-hire and expense documentation before releasing funds.
