On April 16, Mayor Daniel Lurie announced a new $25 million Downtown Business Fund (DBF) aimed at reviving the city’s historic yet struggling Union Square area. He called on entrepreneurs and others to open shops in the beleaguered downtown core. The DBF combines grants, low-interest loans, and physical and technical assistance for businesses willing to open or expand in the Union Square area.
Along with such partners as the Union Square Alliance, San Francisco Downtown Development Corporation, Google and Gensler, Lurie unveiled the DBF’s details, at the corner of Geary and Powell streets.
Shola Olatoye, CEO of the San Francisco Downtown Development Corporation, said the fund is starting with two priority corridors: Powell Street between Union Square and Market Street, and the Moscone corridor along Stockton and Fourth streets.
The location underscored the challenge. Union Square and downtown generates more than 40 percent of the city’s revenue and supports thousands of jobs, but the rows of empty storefronts are impossible to ignore.
On that bright, sunny Thursday morning, double-decker tour buses waited for visitors on Geary Street, and business appeared slow. Union Square itself was clean, but the long-shuttered cafe on the Stockton side of the square, site of the promised Super Duper Burger, showed no visible activity.
Although luring big companies into the downtown area was not the focus of the announcement, Lurie said major brands are returning to the district. For example, Zara will soon open its grand flagship store at the corner of Powell and Post streets.
“Downtown is seeing real momentum, driven by local businesses that make San Francisco special,” Lurie said. “That momentum matters to the whole city.”
When asked about rumors that Nordstrom is eyeing the former Saks Fifth Avenue building, which has been empty for nearly a year, Lurie said he is “not in the rumor business” but looks forward to future reporting on the matter.
The fund is part of Lurie’s “Heart of the City” plan, his vision for a transformed downtown where people don’t just shop, but live, work, play, and learn. He said the DBF is a major step toward realizing that vision by helping more businesses open, grow and stay in the area.
Shola Olatoye, CEO of the San Francisco Downtown Development Corporation, said the fund is starting with two priority corridors: Powell Street between Union Square and Market Street, and the Moscone corridor along Stockton and Fourth streets.
“The fund is designed to support a range of businesses, whether you are a small business, first-time entrepreneur or large national business that wants to be in downtown and has been looking for the right door,” she said.
DBF recipients can receive move-in grants of up to $500,000 to cover tenant improvements, equipment, working capital, and launch expenses. Gensler will offer pro bono and reduced-rate architectural and design services. Capital is available through loans ranging from $100,000 to $1 million via partner banks.
Citizens Bank is committing up to $10 million in affordable loans. JPMorgan Chase is set to offer discounted rates on loans over $500,000 and provide business coaching. Google is another DBF backer, supporting the fund through its philanthropic arm, Google.org, with direct grant funding and providing technical assistance.
The applicant pool is broad and deep. Established operators with strong business plans, experience-driven and tourism-oriented businesses that activate street life, anchor tenants that drive further investment and foot traffic, and existing businesses seeking significant upgrades on the priority corridors will all be considered.
Lurie said officials are taking a “no wrong door” approach to make it easy for businesses to open and grow.
Applications will be reviewed on a rolling monthly basis. To apply, visit the Downtown Development Corporation website.
“For every entrepreneur thinking about coming to San Francisco, coming to downtown, now is the time to do it,” Lurie said.
