Title
Resolution directing the Urban Redevelopment Authority (“URA”) to create, fund, and maintain an Entrepreneur Support Fund for the purposes of supplying select new businesses with early-stage seed funding where applicable.
Body
WHEREAS, the City of Pittsburgh benefits exponentially from the growth and diversification of new businesses in the City’s market landscape; and
WHEREAS, many would-be entrepreneurs face steep costs that make starting their own new business an insurmountable task, with this problem compounding for those seeking entry into industries where venture capital funding and early-stage investments are uncommon; and
WHEREAS, awarding grants and loans to would-be entrepreneurs can better foster the addition of innovative new businesses while ensuring an inclusive business culture by ensuring that resources are made available to new market entrants; and
WHEREAS, in establishing an Entrepreneur Support Fund and identifying appropriate funding sources, as well as developing relevant and accurate criteria to award funding, the Urban Redevelopment Authority can produce catalytic change for entrepreneurs just beginning their business career; and
WHEREAS, the City of Pittsburgh’s Advisory Board on Entrepreneurship & Start-ups - tasked with developing strategies to promote targeted growth opportunities, reviewing and recommending regulatory and legislative policies, serving as a liaison between policymakers and the business community, and advising the policymakers on strategies to promote and support new businesses - has identified the critical need for an Entrepreneur Support Fund; and
WHEREAS, the Advisory Board on Entrepreneurship & Start-ups has recommended and advocated for the creation of an Entrepreneur Support Fund; and
WHEREAS, the City of Pittsburgh is a ready and willing and partner to work with the Urban Redevelopment Authority in the creation, funding, and maintenance of a Entrepreneur Support Fund.
Now therefore be it resolved by the Council of the City of Pittsburgh:
Section 1. FUND
A. The Urban Redevelopment Authority (“URA”) shall create, fund, and maintain an Entrepreneur Support Fund for the purposes of supplying select new businesses with early-stage seed funding where applicable.
1. The URA shall identify and implement potential funding sources for the Entrepreneur Support Fund.
2. The uses of the Entrepreneur Support Fund shall be those described in Section 2 of this Resolution.
B. The Entrepreneur Support Fund shall be disbursed to recipients in the form of grants, loans, and any other financing product deemed appropriate by the URA to further the goals of this Resolution.
Section 2. USES
A. Funds distributed through the Entrepreneur Support Fund may be used for the following, but not limited to, purposes:
1. Fees related to:
a. Amusement Licenses.
b. Commercial Permits.
c. Professional / Industry Licensure.
d. Vendor Licenses.
2. Marketing materials related to:
a. Web hosting.
b. Printed materials.
3. Digital operating tools related to:
a. Enterprise software.
b. Business software.
4. Other non-payroll operating expenses approved at the discretion of the URA.
Section 3. CRITERIA
A. The URA shall develop and make available to applicants criteria for awarding funding.
1. Awarding of funding shall be decided at the discretion of the URA based on evaluation of said criteria.
Section 4. NEW BUSINESS STATUS
A. For the purposes of this Resolution, a New Business shall be considered to be a business that was not subject to Pittsburgh business taxes at any time during the three tax years prior to starting business activity within Pittsburgh.
B. The URA shall develop and promulgate criteria for business to maintain New Business status as needed.
Section 5. NEW BUSINESS EXEMPTIONS
A. The following do not qualify as a New Business for the purposes of this Resolution and related activities:
1. A business affiliated with or sharing substantial ownership or control with a business that was subject to Pittsburgh business taxes at any time during the three tax years prior to starting business activity within Pittsburgh.
2. A business created through a change in ownership of a business that has been subject to Pittsburgh business taxes, including, but not limited to:
a. The closing of a business and subsequent reopening as the same or similar business; or
b. The merging, acquisition, or reorganization of a business; or
c. The transfer of a business to a new individual who maintains and / or operates the same substantially similar business.
3. A business or entity formed for the purpose of evading the necessary payment of fees or taxes.