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EDA moves to restrict business investment grants to for-profit applicants starting July 1
Summary
Staff recommended narrowing Smart Start grant eligibility to for‑profit businesses to prioritize taxable economic impact; the board voted 6-0 to change the guidelines effective July 1 while allowing pending applications submitted under current rules to be reviewed.
The Portsmouth Economic Development Authority voted on May 19 to revise its Smart Start business development and accelerator grant guidelines to prioritize for‑profit businesses starting July 1.
Bill Streic, the EDA's grant administrator, presented utilization data for the past two fiscal years and said the authority should "focus on economic impact and taxable events for the city." He recommended limiting eligibility to for‑profit businesses and directing nonprofits to alternative resources such as the civic and cultural grant program or the Hampton Roads Community Foundation.
Board members voiced concerns about edge cases — for example, nonprofits that support entrepreneurship or create measurable local economic impact. Several commissioners recommended options such as preserving carve-outs or segmenting funds so a portion of a round could still be awarded to nonprofits with demonstrable economic benefit.
The board made a motion to adopt the revised guidelines effective July 1, to allow staff to review current applications submitted under existing rules, and to permit administrative approval of pending applications. The motion passed on a 6-0 roll call.
Why it matters: the change refocuses a local economic-incentive program toward projects that staff say will more directly create taxable events and measurable economic activity. Commissioners asked staff to return with application changes and clarified that exceptional nonprofit cases could be reviewed separately.
What’s next: staff will update application materials for July 1 and will administratively review and act on applications currently under consideration.
