Question: Can you provide examples and dollars past Alexandria budgets have committed to small business support (either in funds to business associations, grants, or other programming) and any funds within the current proposed budget designated for small businesses? Can Visit Alexandria or our Office of Finance or other source provide ROI data on funds invested in small businesses in the city and the return on that investment. (Vice Mayor Bagley)
Response:
Can you provide examples and dollars past Alexandria budgets have committed to small business support (either in funds to business associations, grants, or other programming)
a. Visit Alexandria: Has not made any direct monetary grants to businesses or events during the past 5 years.
b. In Fall 2023, AEDP launched a new small business team-4 staff people, as well as small business counselors, all of whom provide direct assistance to small business, including independently owned retailers. Services offered include one-on-one counseling and workshops, connections with the local community and guidance on access to capital.
c. The City of Alexandria contributed funds to support the 2024 Small Business Resiliency (SBR) Grant Program that was administered by the Latino Economic Development Center (LEDC). The program offered Alexandria business owners funding to overcome significant challenges in accessing resources as they continue to recover from the pandemic. Sixty-four recipients received disbursements totaling more than $440,000 via grants of up to $7,000.
d. Queen Street corridor grants, funded through development contributions collected as required in the Braddock Metro Small Area Plan, included independently owned and operated storefronts. A full list of recipients can be viewed online here: https://alexandriaecon.org/grants/queen-street-corridor-grants/
e. AEDP: In 2022, AEDP awarded $534,265 in City-allocated ARPA-funds to eight business associations. According to the ALX B2B Business Association Grant requirements, business associations that received grants exceeding $50,000 were required to have a 20% match. The total match from four of the grant recipients was $85,175. Bringing the total project budget, including the match, to $616,441.
1. The Chamber ALX was awarded $17,500
2. The West End Business Association (WEBA) was awarded $50,000
3. The Old Town Business Association was awarded $100,000 with a match of $29,965
4. Alexandria Minority Business Association was awarded $50,000
5. The Del Ray Business Association was awarded $95,766, with a match of $13,797
6. Eisenhower Avenue Public-Private Partnership was awarded $88,000 with a match of $31,703
7. Old Town North Alliance was awarded $83,000 with a match of $9,711
8. The Social Responsibility Group was awarded $50,000
Any funds within the current proposed budget designated for small businesses?
In addition to the AEDP small business team and Visit Alexandria marketing funds, the proposed budget includes $200,000 for the Small Business Accelerator initiative.
Can Visit Alexandria or our Office of Finance or other source provide ROI data on funds invested in small businesses in the city and the return on that investment.
Measuring and demonstrating ROI on funds invested in small businesses is challenging because much of the investments are indirect (such as funding provided to business associations and support through counseling and marketing) and the tax revenue from small businesses can be influenced by factors other than the City’s investment such as economic cycles.