PHX Reporter

The Small Business Financial Assistance Program (SBFAP) will be extended through 2024, according to a news release from the city of Phoenix. 

This pilot program funded businesses affected by light rail projects in Phoenix, such as the South Central Extension/Downtown Hub and Northwest Extension Phase II projects. In its first year, the program granted over $360,000 to 62 businesses impacted by construction, the news release said.

The program will be renewed and will allow new applicants and those who received previous funding to apply.

Valley Metro, which offers the SBFAP, is the regional public transportation agency for metro Phoenix, according to its website. 

The program is funded through the Phoenix Community Development and Investment Corporation. Prestamos CDFI (Community Development Financial Institutions Fund) is the program administrator, according to the news release.

“The extra income these grants offer can make an enormous difference in the lives of local business employers and employees during light rail construction,” Phoenix Mayor Kate Gallego said in the news release.

Depending on eligibility, businesses adjacent to construction on Phoenix light rail projects can apply for grants totaling up to $9,000. The funds may be used for current expenses or past due costs, including utilities, rent or mortgage, insurance, and payroll, according to the program’s website.

Two requirement changes will affect which businesses qualify for the grants. Businesses must not exceed $750,000 in annual revenue ($500,000 previously) and must have been in business before the beginning of light rail construction; this requirement was previously listed as one year before construction.

Application and eligibility information is available at prestamosloans.org/valleymetro.

Phoenix councilmember Yassamin Ansari said that construction should be completed in two years.

“I would like to ensure that we support our small businesses that are being impacted by light rail development,” Ansari said in the news release. “From technical assistance to rent relief, these grants will allow businesses to build the cash buffer needed for a slower Phoenix summer. I encourage every business that hasn’t taken advantage of this opportunity to apply. My office is here to help.”

Phoenix councilmember Carlos Garcia also had positive words about the program.

“Small businesses are the heart of our community, and we will keep fighting for them,” Garcia said in the news release. “We hope that the extension of this program will ensure that businesses have additional support through this phase of construction.”