City unveils $1.3M neighborhood commercial-corridor grant program to help small businesses

Winston Brooks, the city’s director of economic development and entrepreneurship, told the council the new Chattanooga commercial corridor revitalization grant program will deploy funds the council previously authorized to the Industrial Development Board to support small businesses outside the downtown core. Brooks said the program is distinct from downtown initiatives and is backed by data from a 2023 economic development study that recommended activating neighborhood corridors as a way to support local entrepreneurs and build neighborhood wealth.

Brooks laid out four grant tiers: signage and security camera grants up to $5,000; façade improvements up to $10,000; storefront activation grants up to $25,000 (using a $10 per square foot formula to fill vacancies); and business retention awards up to $50,000 (using a $15 per square foot formula). He said larger tiers require more rigorous planning and that once approved an applicant will have nine months to complete work. Brooks also described eligibility guardrails: tax‑exempt properties, receivership buildings, home‑based businesses, national franchises, religious assemblies, routine maintenance and properties with outstanding code violations are ineligible.

The program’s money, Brooks said, was authorized last year and is currently held in an IDB account labeled for the renewing Chattanooga initiative. ‘‘This is a 100% grant money,’’ Brooks said, explaining the city designed the program to avoid reimbursement barriers that can prevent small enterprises from participating. He said the Southeast Tennessee Development District will perform third‑party administration, helping with outreach and check‑cutting, and the city will launch an application portal called CivicServe to manage submissions and project tracking.

Vice Chair Elliott asked whether legal had signed off on the program and how payments would be dispersed. Brooks said legal approval will be completed before the program is released and reiterated that the model is grant‑first rather than reimbursement‑first to reduce upfront capital barriers for merchants. Questions about the match or other funding sources were answered by staff noting the $1.3 million is already in the IDB account and program administration costs are included in the projection.

Council members pressed on equity. Councilman Clark urged the administration not to create barriers that would exclude long‑standing minority‑owned businesses and asked what consideration would be given to women, veterans and Black entrepreneurs. A representative from the Tennessee Small Business Development Center said the center will provide technical assistance and that applicant demographic data can be tracked through the program so the city can measure reach. Brooks said staff would accept council recommendations and consider adjustments to application requirements where appropriate, while retaining thresholds needed for larger awards.

The program checklist will require itemized quotes from three independent licensed contractors, professional renderings, an active city business license and other documentation; applicants who receive funding must wait 12 months before applying again. Brooks said he plans to take the program to the IDB in September and will circulate written materials before asking the council for final action.

If the council approves the IDB’s release plan, staff aim to begin outreach directly to corridor property owners and merchants through direct mail and the CivicServe portal. The committee recessed for an attorney meeting and returned to the consent agenda later in the evening.

The economic development department and the IDB will provide a written packet and final legal review before any awards are made.