Program Status: We are updating the Small Business Assistance Program guidelines and application. We will post the opening date on this page by November 16, 2026. 

The Small Business Assistance Program gives grants of up to $25,000 to small businesses in CDBG-eligible areas of Springfield for equipment, improvements and other investments that help the business grow. It is funded by the U.S. Department of Housing and Urban Development through the Community Development Block Grant program.

This is a grant, not a loan. No match is required. You commit to stay open at the project address for two years from the date of contract.

IMPORTANT NOTICE: Applicants should not submit applications to the program through third parties - all communication and questions about the program should go through the Program Administrator directly

Before starting an application: Review the Program Guidelines thoroughly

For a map of CDBG eligible zones and NRA census tracts in Springfield, click here

How to apply

1. Read the guidelines. Small Business Assistance Program Guidelines (PDF).
2. Step 1, submit the pre-application. It is a short form with your business, your project and photos. It is not an application for funding. We review it and email you. Start the pre-application.
3. Step 2, full application, by invitation. If your project fits, we invite you to apply. You use the same link and your answers carry over. This is where you provide quotes and documents.
4. Selection and contract. Selected applicants receive a list of contract documents. Do not buy, order or start work until you have a written Notice to Proceed from the City.

Questions first? Call (413) 787-6020. Applications come directly from the business. The City never asks for a fee. Do not click popups or use third parties to apply.

Who can apply

• Open and operating from a commercial space in a CDBG-eligible area. See the 2025 CDBG and NRSA map or call us with your address. A business not yet open may apply with written support from the MASBDC or a similar local advisor.
• Registered with the City Clerk with a current business certificate.
• The business, owner and property owner are current on City taxes, fees and fines.
• No active code enforcement actions on the property.
• No default on a City or HUD loan, grant or fee.
• An address, business owner or property owner can receive funding from this program once every five years.

Businesses in a Neighborhood Revitalization Strategy Area (NRSA) score favorably. Prior City small business funding since 2021 does not disqualify you, but it lowers your score.

What the grant pays for

• Equipment, furniture and fixtures, technology and software
• Website and marketing services
• Initial inventory tied to an expansion
• Interior and exterior improvements, including accessibility
• Payroll for new employees, where the project creates jobs

Not eligible: rent, utilities, current payroll, vehicles, mortgage payments, taxes or fines owed to the City, and anything bought or started before a Notice to Proceed.

Requirements to know about

• Quotes. Two comparable quotes per trade for construction over $2,000. Two quotes or prices for other purchases over $3,500. For retail items, prices from two sellers, including online prices, are acceptable.
• Prevailing wages. Davis-Bacon applies to construction contracts over $2,000. It does not apply to equipment, furniture, technology or marketing. Construction must start within 90 days of contract execution.
• Environmental review. The City completes it after selection. Allow four to six weeks.
• Historic districts. Exterior changes need Springfield Historical Commission approval.
• Insurance. $1,000,000 / $2,000,000 general liability with the City of Springfield named as Additional Insured.
• Legal status. Every applicant signs the Declaration and Consent to Verify Legal Status. The City runs SAVE verification for applicants who are not U.S. citizens, including green card holders.

How you are paid

• Reimbursement (Preferred). You pay, then submit proof of payment.
• Installments. 25, 50 and 25 percent, paid to the business against contractor or vendor invoices. Each installment must be paid out and documented before the next. 

The City does not pay contractors or vendors directly.

After the award

Finish the project within 12 months of the Notice to Proceed. Maintain the improvements for one year after all work is complete. Stay open at the project address for two years from the date of contract. A business not yet open must open within one year of the signed contract.

How applications are scored

Twenty points: program goals and guidelines (6), community and economic development benefit (4), NRSA location (2), strength of the business or plan (5), and previous funding history (3). You need 15 or more to be funded. A qualifying score does not guarantee an award.

Application Forms:

1. W9
2. Vendor Maintenance
3. Property Owner Acknowledgement Form
4. Tax Certification Affidavit
5. Declaration and Consent to Verify Legal Status

Get Free Help Before You Apply

Massachusetts SBDC, Western Regional Office: Free one-to-one advising. Required business plan review for businesses open less than two years. (413) 737-6712. https://www.msbdc.org/wmass/

SCORE Western Massachusetts: Free mentoring. (413) 785-0314. https://westernmassachusetts.score.org/

WNE Law Center for Innovation and Entrepreneurship: Free legal and business consultation. (413) 796-2030.

Financing your project

If you choose reimbursement, you pay your contractor first. With any option, you cover any match and costs above the grant. These lenders can help with bridge financing, your match, or costs above the grant. They are listed for information only; the City does not endorse any lender.

Mass Development Microloan Program: Microloans provide financing from $5,000 to $100,000 for Massachusetts small businesses to assist with working capital, or the purchase of furniture, fixtures, supplies, materials, and/or equipment. 

Common Capital: Springfield-based community lender and SBA Microloan lender. 1780 Main Street, Springfield. (413) 233-1680. 

Massachusetts Growth Capital Corporation (MGCC): State small business lender and SBA Microloan intermediary. 

SBA Lender Match: Free tool that connects you with SBA-approved lenders.

For up to date information and application on the City of Springfield Storefront Improvement Program, please visit HERE. 

NOTE: Proposed projects are required to fulfill basic requirements of the CDBG program, particularly as they relate to job creation goals, elimination of slum and blight, project impact upon the environment, and the Davis/ Bacon Act. The City of Springfield during the application process will advise applicants of these requirements. 

SCORE is a non-profit organization dedicated to entrepreneurial education through face-to-face and email counseling. (413) 785-0314  http://westernmassachusetts.score.org/ 

The Massachusetts Small Business Development Center Network's Western Regional Office provides free and one-to-one business advising to prospective and existing small businesses. (413) 737-6712  www.msbdc.org/wmass/

The Western New England University School of Law's Center for Innovation and Entrepreneurship offers legal and business consultation to entrepreneurs and small businesses. (413) 796-2030 or visit http://www1.wne.edu/law/centers/innovation-and-entrepreneurship.cfm 

Supplier Diversity Office (SDO) The Supplier Diversity Office (SDO) of the Operational Services Division (OSD), certifies diverse businesses and also manages several business programs that help enhance the marketability of small and diverse businesses when they bid on public contracts. https://www.mass.gov/supplier-diversity-office

The Small Business Administration (SBA) aids with starting, building and growing businesses. A branch office is located Springfield. www.sba.gov/   Ph# 800-827-5722

The Workforce Training Fund (WTFP)- is a state fund enacted into law in July 1998 and financed entirely by Massachusetts employers. Its purpose is to provide resources to Massachusetts businesses and workers to train current and newly hired employees. www.mass.gov/wtfp please contact Angela Holley at (617) 717-6911 or wtfp@commcorp.org.

The Massachusetts Community Development Finance Corporation provides financing to small businesses in Massachusetts with the purpose of creating or preserving jobs and promoting economic development. (617) 337-2815  http://www.mcdfc.com/ 

MassDevelopment offers Tax-Exempt Bonds which provide a very low interest rate financing for capital projects. Projects financed must be eligible for tax-exempt financing under the federal tax code. Tax-Exempt Equipment Lease/Purchase Program provides manufacturers, nonprofit institutions, and environmental enterprises with a low-cost alternative for financing $300,000 or more in new equipment needs. This organization was formerly known as the Massachusetts Development Finance Agency before merging with the Massachusetts Industrial Finance Authority and Massachusetts Land Bank. 413.731.8848  http://www.massdevelopment.com/about/regional-offices/springfield/