Smart Start Business Development Grant: $2,000 for Portsmouth Startups

Grant Overview

Financial Support for New For-Profit and Nonprofit Enterprises in Portsmouth, Virginia

Donor: Portsmouth Economic Development Authority (EDA)

About: For any new entrepreneur in Portsmouth, the gap between a brilliant idea and a functioning business is often filled with critical, early-stage costs. The Portsmouth Economic Development Authority (EDA) understands this challenge intimately. They created the Smart Start Business Development Grant not just as a handout, but as a foundational investment. It’s a targeted $2,000 injection designed to help new for-profit and nonprofit ventures clear those initial hurdles and build a resilient enterprise from day one. This funding seems specifically tailored to address the very real costs that can stall a promising startup before it even gets going. If you’re just starting out, exploring a Virginia-focused grant like this one could be a pivotal first step.
The core idea here appears to be about more than just money; it’s about building capacity. The EDA wants to see local businesses succeed in the long term. By covering expenses like professional services, essential equipment, or new technology, the grant helps new owners establish strong operational footing. Think of it as rocket fuel for a business that’s already built the engine. This program is a clear signal that the city is invested in its homegrown talent, offering a tangible resource for both for-profit businesses and the nonprofit organizations that serve the community.

Are You the Right Fit? Key Eligibility Details

So, who is this grant for? The criteria are quite specific, aiming to support the newest players in Portsmouth’s economy. You’re likely a good candidate if your business or nonprofit has been operating for three years or less, proven by your City of Portsmouth business license. The program focuses on truly small operations, requiring you to have 10 or fewer full-time equivalent (FTE) employees. This focus makes it an ideal startup grant for those in their initial growth phase.
There are also some location-specific rules to be aware of. If you’re a home-based business or using a co-working space mailbox, you’ll need to prove you live in Portsmouth. And if you’re a tenant in a co-working space, a 12-month lease is required. The program intentionally excludes government entities, religious organizations, and residential-use businesses. The most crucial requirement, and one that shows the EDA’s commitment to preparation, is the mandatory completion of an approved business course, like Santa Clara University’s My Own Business Institute (MOBI). This suggests they aren’t just funding ideas, but funding educated entrepreneurs, including those leading a non-profit organization.

The Four-Step Path to Funding

The application process is refreshingly straightforward, broken down into four clear steps. First, you must complete the required business training course. This is a non-negotiable prerequisite that sets the stage for a strong application. It’s a smart move by the EDA, ensuring applicants have thought through their business model. Once your coursework is done, the second step is to submit the full application package to Portsmouth Economic Development. And they mean full—incomplete applications are denied, so attention to detail is critical.
Step three is the review process. The EDA staff will check your submitted documents for completion and adherence to the guidelines. Finally, if your application clears these hurdles and is approved by the EDA’s Board of Commissioners, you’ll enter into a Grant Agreement. This final step formalizes the award and outlines your responsibilities. The entire journey is designed to be transparent, guiding aspiring small business owners from training to funding.

How to Use Your $2,000 Grant Wisely

Once approved, what can you actually spend the money on? The grant is quite flexible, but the eligible activities are all geared toward foundational capacity building. You can use the funds for professional services—think legal, accounting, or marketing help that might otherwise be out of reach. It can also cover small-scale equipment, machinery, or tools that are essential to your production or service.
Other approved uses include technology and digital infrastructure like hardware and software, business furniture and fixtures, and key certifications. This is a practical list that directly addresses the real-world costs of getting started. It’s important to note what’s not covered: wages, rent, inventory, and general operating costs are ineligible. This distinction reinforces the grant’s purpose as a tool for one-time, strategic investments, not ongoing operational support. For many entrepreneurs, particularly those who identify as a woman-owned business, having this kind of targeted support can make a huge difference.

Preparing Your Application for Success

A successful application hinges on preparation. The requirement for a complete business plan and two price quotes for each proposed purchase means you need to do your homework. Your business plan isn’t just a document; it’s the story of your venture and how this grant fits into your growth strategy. It needs to be thorough and convincing. Getting all your documents in order—from your business license to your financial projections—before the deadline is paramount.
For many applicants, this level of preparation can feel daunting. This is often where seeking outside expertise can be a game-changer. Ambitious founders might consider using Grantaura’s professional services to get an edge. A polished application built with the help of expert grant writing services or a meticulous business plan review can significantly sharpen your proposal, ensuring it clearly communicates your vision and meets the EDA’s high standards.

Focus: Small Business, Startups, Nonprofits, Capacity Building, Entrepreneurship, Economic Development

Region: Portsmouth, Virginia

Eligibility:
For-profit small businesses and nonprofit organizations based in Portsmouth, VA.
In operation for 0-3 years (evidenced by a Portsmouth business license).
10 or fewer full-time equivalent (FTE) positions.
Must be current with all City of Portsmouth taxes and fees.
Home-based businesses require proof of Portsmouth residency.
Co-working space tenants require a minimum 12-month lease.
Must complete the Santa Clara University’s My Own Business Plan Institute (MOBI) online course or an approved equivalent.
Prohibited entities: local/state/federal government, religious organizations, residential-use businesses.

Benefits:
A one-time grant of up to $2,000.

Deadline: Round 1: July 31, 2025; Round 2: October 31, 2025; Round 3: January 31, 2026; Round 4: April 30, 2026

Terms:
Business Resiliency: The ability of a business to adapt and recover from challenges and disruptions.
Capacity Building: The process of developing and strengthening the skills, processes, and resources that organizations need to survive, adapt, and thrive.
FTE (Full-Time Equivalent): A unit that indicates the workload of an employed person in a way that makes workloads comparable across different contexts.