$200K grant to help local businesses

STAUNTON – Small businesses in Staunton will receive a boost thanks to a $200,000 state grant city officials announced Tuesday.

At the George Bowers Grocery in New Town, Assistant Economic Director Amanda Huffman said the SPARC PLUG loan program would provide training, business planning and funding directly to local entrepreneurs and business owners.

SPARC PLUG is an acronym for the program’s mission statement: Support, Promote and Revitalize Communities – Providing Loans to Underserved Groups.

The money comes from the Virginia Department of Housing and Community Development’s Community Development Block Grant Program. The Staunton Creative Community Fund, which provides small business loans to city businesses, will manage the new loan program, which is separate from the non-profit organization’s current microloan program.

“We’re really excited that we have the opportunity to do this,” said Councilman Ophie Kier.

At least 51 percent of all entrepreneurs who receive funding under the new program must have family incomes at or below 80 percent of the area’s median income. Program officials say that ensures that more women, minorities and others who traditionally have limited access to capital can start and expand small businesses.

“This program is dedicated to helping businesses that have been unable to receive funding through other sources,” said SCCF Executive Director Meghan Williamson.

The program is expected to create about 20 new jobs and is open to businesses not only from Staunton, but also from Waynesboro, Augusta County and the rest of the Central Shenandoah Planning District. The new loan program requires that 65 percent of the businesses be in Staunton or be located in the city.

Entrepreneurs can receive loans of up to $35,000, though Huffman expects most loans to be made in the $5,000 to $10,000 range.

“We hope that through this program there’ll be an increase in entrepreneurial activity,” Huffman said.

The program will provide training, business planning and funding directly to local entrepreneurs and business owners.

Brian Wiedemann, co-owner of George Bowers Grocery, said the SCCF has aided the business through its mentorship. He hopes the new program will help attract other small businesses to the New Town area.

Should the money run out, Huffman said she would expect to apply for more grant money.