Austin could soon offer targeted funding to help reduce rent costs for small businesses seeking to maintain or expand their operations.
The gist
The new proposal from council member Krista Laine, advanced by City Council in early November, calls to establish a publicly funded rental buy-down program for commercial spaces. If implemented, the program under Austin Economic Development would help local and legacy establishments contributing to Austin's "cultural identity and economic diversity" that are viewed as viable for continued operations following the city aid.
Laine's resolution is intended to promote complementary, locally-owned and operated businesses. It aims to increase the activation of busier corridors with pedestrian activity, and support a range of businesses that offer diverse products and services.
Laine said her goal is to grow the small business footprint in the most visited parts of the city, partially in response to the impacts of larger corporate additions to Austin's economic landscape.
"One of the trigger words we’ve been hearing a lot recently is ‘private equity.’ It’s not just our favorite childhood chains that are vulnerable to private equity or outsider influence; our local favorites and emerging small businesses are also too often victims of these forces," she said Nov. 5. "Our hope is to create another valuable tool to strengthen and protect our local business community.”
The details
The proposed commercial rent buy-down program would add to the several city offerings in place for small businesses.
Another, the revised Place-based Enhancement Program, has directed millions of dollars to longtime Austin establishments this year and could complement the new initiative. The buy-down program could feature similar business eligibility requirements to the existing place-based program, with additional consideration for target business sectors and accountability measures for awarded funding.
Before the rental assistance program is established, city leadership plans to meet with members of the Austin business community for feedback and identify how the commercial buy-downs could be funded. A shortlist of initial eligible businesses could also be chosen as a proof of concept for the program's launch.
Laine's measure follows other recent economic development updates like the city's funding of new financing and entrepreneurship assistance, including a small business loan buy-down program, and a separate City Council proposal to promote "micro-businesses" within existing neighborhoods.
Quote of note
“Small businesses are an essential part of what makes Austin, Austin. Any economic development goes way beyond just attracting large companies, it’s about uplifting the companies that make Austin the city that it is. So we need to continue to invest in local restaurants, independent retailers, creative spaces and neighborhood businesses that create jobs and make Austin unique," council member Zo Qadri said. "Activating vacant and underutilized commercial space is an opportunity to strengthen our neighborhoods, increase foot traffic and support vibrant commercial corridors while complementing existing businesses.”
