MILPITAS — Financial support will soon be available for the city’s small business community.
Milpitas has allocated $200,000 in federal funds to provide up to 40 local microenterprises each with $5,000. The efforts are part of Milpitas’s Microenterprise Assistance Program (MEAP), which is designed to provide economic assistance to small scale businesses within the city.
The city recognizes microenterprises as commercial enterprises that have five or fewer employees. Priority will be given to eligible commercial and home-based daycare operators, according to the city.
“The awards will provide a financial cushion and help alleviate the economic challenges faced by microenterprises in Milpitas,” the city states.
The application period for MEAP will close on Friday, March 14.
To be eligible for the program applicants must meet certain criteria, including operating within Milpitas city limits as a for-profit enterprise with no more than five employees. The business owner’s income must also be at or below 80% of the Area Median Income for Santa Clara County. The grants can be used for operations such as rent and mortgage, payroll, utility payments and supplies and equipment.
The funding for MEAP comes from the Community Development Block Grant, a federal program which helps cities improve affordable housing in their area, and create more economic opportunities and community development.
To process the applications, Milpitas is partnering with the Forward Platform, an organization which partners with governments and organizations to deliver resources and funding to communities.
“By partnering with Forward, we are actively supporting the financial resilience and growth of Milpitas businesses, reinforcing our city’s reputation as a thriving hub for innovation and economic opportunity,” said City Manager Ned Thomas.
Last year, MEAP provided $2,000 in grants to 25 eligible microenterprises, for a total of $50,000. The program supported many Black, Indigenous and People of Color applicants, who had previously been underserved by traditional programs, according to Forward.
“This program is a testament to our collective commitment to equity and support for those most affected by the economic challenges of being a microenterprise,” said Adnan Mahmud, CEO of Forward. “Together, with the City of Milpitas, we are creating pathways to resilience, ensuring that microenterprises have the opportunity to thrive in a supportive environment.”
Forward states that many small and micro-enterprise businesses in Milpitas do not have the staffing or resources to keep track of current grant programs, often missing funding opportunities. Immigrant and minority-owned businesses especially have difficulty completing grant applications due to language barriers and difficulty gathering all the necessary documents.