Vacant Storefront Program

Prosper Portland administers the Vacant Storefront Program using one-time general fund resources provided by the City of Portland through an intergovernmental agreement. The program is intended to foster a vibrant central city and commercial districts by reducing the financial barrier for eligible businesses to occupy vacant storefronts in Portland. Its stated objectives are to strengthen Portland's economic vitality and community identity, support local businesses, increase commercial activity, and fund tenant improvements for grocery stores, restaurants, and retailers. All awards remain subject to available program funds. Funding is provided as reimbursement for up to 75 percent of eligible project costs after execution of a grant agreement. Awards are made on a rolling, first-come, first-served basis until available funds are expended. Maximum awards vary by business category: grocery stores may receive up to $100,000, restaurants up to $50,000, and retailers up to $25,000. For this program, a grocery store is a business occupying more than 5,000 rentable square feet and providing household products, packaged foods, bulk foods, produce, or meat for home consumption; grocery stores occupying 5,000 square feet or less are treated as retailers. Grocery store awards may not be combined with Prosper Portland's Healthy Communities Grocery Access Grant where that grant is available. Vacant Storefront Program awards also count toward maximum awards available under the Prosperity Investment Program, and PIP funding will be prioritized where available and where the applicant is eligible. Eligible applicants include owners of grocery stores, restaurants, or retail businesses located in the City of Portland that have secured a lease with at least three years remaining in the term to occupy a vacant street-level storefront within the previous six months. The property must be zoned for commercial or mixed use, employment, industrial, or multi-dwelling use. Business applicants must have a City of Portland business license and State of Oregon registry and must be current on applicable property and Prosper Portland financial obligations, including rent, taxes, and debt payments. A franchise or a business with three or more locations, regardless of location, must be locally owned and its owner must reside in Portland. Property owners may apply only when leasing to an eligible business owner. Nonprofits, non-locally-owned national franchises, businesses excluding minors during all business hours, businesses selling THC products, storefront-less e-commerce businesses, food carts and food trucks, and certain prior maximum Prosperity Initiative Program recipients are ineligible. Eligible costs include physical improvements and qualifying consulting assistance related to business and property improvements on commercial, industrial, and mixed-use property. Hard costs may include signage, painting, lighting, storefront work, mechanical systems, tenant improvements, roofs, security, landscaping, and other permanent fixtures. Soft costs may include design, architectural and engineering services, permitting fees, and third-party project management; soft costs may not exceed 20 percent of the grant and should reasonably lead to construction improvements. Ineligible expenses include costs incurred before grant agreement execution, inventory, non-permanent fixtures and furnishings, equipment, real property acquisition, and operating expenses such as wages, marketing, research and development, rent, and equipment-related operating costs. Prosper Portland staff review applications against the program's eligibility criteria. When both the applicant and project are determined eligible, funding is awarded on a first-come, first-served basis through a grant agreement. Applicants selected for funding are notified by email or telephone, and awards may also be announced through a media release or on Prosper Portland's website. An award is not final until the recipient and Prosper Portland execute a grant agreement establishing the grant amount, approved scope, work, budget, reporting obligations, and other requirements. Prosper Portland requires at least one bid for each type of proposed work, and all contractors must be licensed by the State of Oregon. Prosper Portland may reject proposed contractors and may require professional consulting support for complex projects. Grant-funded work may begin for reimbursement purposes only after the grant agreement has been executed. Before execution, grantees must be in good standing, meet City of Portland business-license requirements, be registered with the Oregon Secretary of State, and submit a completed W-9 and ACH form. Grantees must maintain required insurance, retain records, comply with applicable permits and regulatory approvals, maintain grant-funded improvements in good order, and satisfy reporting requirements including supporting documentation for incurred costs. Funds used for ineligible expenses, inconsistently with the agreement, or in connection with a material breach may be subject to repayment. The guidelines do not specify a fixed application opening date, closing date, application form contents, named program contact, award performance period, or recurring annual cycle. Instead, grants are described as rolling and first come, first served until available funds are exhausted.

Apply while funds remain because awards are rolling and first come, first served; confirm the storefront lease has at least three years in its term and was secured within the past six months; do not incur reimbursable costs before grant agreement execution; obtain at least one bid for each type of proposed work and use Oregon-licensed contractors; keep eligible soft costs at or below 20% of the grant; consider PIP first where funding is available and eligibility requirements are met.