Please review the following important information before applying for a Business Up-fit Grant, and refer to the BDC Small Grants Program Guidelines for more detailed information.

 Business Up-fit Grant Award ($5,000 - $15,000)

This grant program is structured as a deferred loan for business up-fit to help ease start-up costs. For businesses that stay three years, the loan becomes an interest free grant. For businesses that leave before the three years a pro-rated loan amount must be repaid. The loan proceeds can be used for business up-fit including refriderators, coolers, point of sale equipment, and other business property that is removable from the space.

This is a 50-50 matching program. Available grant funds for individual projects are determined using a formula based on $3.00 per sq foot for retail/office and $5.00 per square foot for restaurants. For example, a grant recipient’s total investment in their business (not including buildings and land) must be at least $5,000 to receive a deferred loan (grant) of up to $5,000. Restaurants and food-related retailers that require specialized equipment may be eligible for up to an additional $10,000. New businesses in operation for less than one year will be eligible, as will existing businesses that are significantly expanding or changing their business model. The three-year period starts from the date the grant is made.

Funding Source & Availability

The grants in this funding cycle are matching grants that require a 50% match by the applicant and are structured as deferred loans, which means that if the improvements stay in place for a period of three years the interest-free loan becomes a grant. However, if the business or property closes or changes hands, the appropriately pro-rated portion of the loans becomes due to the BDC. Grant funding is awarded as a reimbursement for approved project work with invoices marked "PAID" provided to the BDC.

Grant Cycle Schedule

The BDC’s Grant Program is administered on a quarterly basis. Grant applications are due no later than midnight on the dates indicated below, in order to be considered for that quarter’s granting cycle. Additionally, applicants are required to have a pre-application meeting with BDC staff.

 Application Due Dates

• July 15
• October 1
• January 1
• April 1

Eligibility

Downtown Property and/or Business Owners located within the boundaries of the downtown Municipal Service District are eligible to apply for the BDC Small Grants Program. Please see the map below:

 INELIGIBLE COSTS

• Financing of existing debt, working capital, non-capital equipment, and inventory.
• Operation and maintenance costs:
• Office equipment (i.e., technology, computers, furniture, office supplies, etc.);
• Rent, utilities, including cable/internet service, or other recurring overhead costs;
• Salaries, personnel expenses;
• Emergency building repairs and routine maintenance;
• Artwork, including building murals.
• Soft costs (Soft Cost is a construction industry term but more specifically a contractor accounting term for an expense item that is not considered direct construction cost. Soft costs include architectural, engineering, financing, and legal fees, and other pre- and post-construction expenses).

Business Up-fit Program Requirements 

• Applicants are required to meet with BDC staff prior to making application to review their goals and plan for use of grant funds.
• A completed business plan must be submitted with each application and must be approved by the BDC Grants Review Committee.
• Depending on business experience, applicants may be asked to meet with an experienced business mentor and submit quarterly reports on the execution of their business plan for the first two years.
• A financial statement or proof from a lending source must accompany each application (this is a business-specific financial statement or proforma).
• Proof of insurance must accompany each application.
• Each application must also include the following:
  • Photos of building’s existing condition. Include all relevant views and angles.
  • Sketches, drawings, site/space plans, architectural plans,
  • Photoshop renderings or other similar visuals that will provide the BDC Grants Review Committee with sufficient information to evaluate the improvements being proposed.
  • Specifications and cost estimates for project activities. For sub-contracted work, include at least two quotes.
• Tenants must submit approval letter from landlord for application and project activities.
• Applicants must adhere to applicable City of Burlington Ordinances and code requirements such as building codes, sign regulations, etc.
• Grant funds will be reimbursed based on paid invoices/receipts.
• At the end of each year of the three-year grant cycle, an annual report must be submitted to the BDC Grants Committee within thirty (30) days chronicling how the grant has assisted the recipient with new or expanded business activities. Upon review and acceptance of the annual report by the BDC grant program manager, that year’s portion of the loan will be forgiven and become a grant.