Small businesses in East Lansing stand to receive up to $10,000 from the city council if members approve a rent-assistance proposal at tonight’s meeting.
The Small Business Rental Assistance Program is designed to offer grants to businesses that “need to buy some time to sort things out,” said Jim van Ravensway, East Lansing’s director of planning and community development.
“We’re basically saying, ‘Look, we’ll help you out for a year. We’ll pay half your rent and allow you a chance to see if this market is best for you or if you need to relocate.’”
Ultimately, the city wants to keep the businesses in the area, he said.
Once approved, the assistance program will be federally funded by a Community Development Block Grant. The program will give rental assistance up to $10,000 or 50 percent of actual rental cost for one year. The program would be the latest effort by the city to increase retention in the downtown area.
In 1997, the city created the Small Business Assistance Program to offer assistance such as help with writing business plans and offering publicly-approved loans.
Van Ravensway said the rental program should be attractive to business owners because, unlike the small business loan, it offers some anonymity.
“We have the loan available to help merchants, but many shy away because it has to be approved publicly,” he said. “It seems no one wants their neighbor knowing that he or she needs help.”
All rental grants will be reviewed and approved by an administrative team, which includes City Manager Ted Staton, Director of Finance Gary Murphy and van Ravensway.
Local business owners say the grant may be a relief.
“I think program will be incredibly helpful for a lot of small businesses because we do struggle,” said Cory Curtis, owner of Cool Creations, 209 M.A.C. Ave. She added that construction on M.A.C. Avenue and a poor economy has been hard on her business.
Stanley Blanchard, owner of Chicken Heads, 543 E. Grand River Ave., said the grant will be greatly appreciated by owners, especially during the summer season when business is slow.
“That program will be great because there are four months out of the year when students are not around, and things are tight,” he said. “I know some business owners that have had to get second jobs to make it around here in the summer. It’s feast or famine.”
Councilmember Vic Loomis said the Small Business Assistance Program was designed for a business like Chicken Heads.
“We can help business owners develop business plans,” he said. “Many merchants come here trying to live out a dream and really haven’t thought about all the details.
“The assistance program is here to help them. It is really designed to help us to retain the very important smaller business that gives our downtown it’s character.”
Audrey Barney can be reached at barneyau@msu.edu.
