New Galesburg grant program helps launch eight new businesses in 2022

GALESBURG — The city of Galesburg and the Knox County Area Partnership for Economic Development helped create three new business incentive programs this year that have contributed to the launch of at least eight new businesses.

The incentive programs — the Southside Occupancy Assistance Program, the Minority/Woman-Owned Business Startup Assistance Program and the Minority Business Collateral Program — were approved by Galesburg City Council on Feb. 21 and draw from $750,000 in federal American Rescue Plan Act funding.

Mayor Peter Schwartzman said the programs came out of conversations with people in Galesburg and the goal to make the city's government responsive to the community's needs as "our city's ‘boat’ rises when all parts of the city and all its members rise."

"When they said we are lacking in this or that, in this case, businesses on the south side, economic development on the south side, we set out to remedy that," Schwartzman said. "And not just with a bandaid, but I think a $750,000 investment over three years is a very significant one and we are starting to see the fruits of that."

All of the businesses that submitted complete applications and went through the review process have so far been approved for funding from Galesburg City Council, Ken Springer, president of the Knox County Area Partnership for Economic Development wrote in an email.

In order to secure funding, applicants must provide the Knox County Area Partnership with a completed business plan, complete startup financials, proof that the business has been legally organized and proof that the business has a bank or credit union account.

Then, a volunteer committee of commercial lenders, business owners, and city staff members review the business plan and ask questions. Once reviewed, the committee makes a recommendation. Applications for the programs can be found on the city's website. The grants are available until they expire in March 2024 or until funding runs out.

Schwartzman said he hopes the businesses that did receive funding this year motivate others to join the fold. Springer wrote there has been a "steady stream" of interest in these programs since they were created and it's pretty safe to say ''there will be more applicants coming forward at a regular rate in 2023.

"From the standpoint of jump-starting entrepreneurial activity in Galesburg, these new programs have been a major positive," Springer wrote. "So far, we’ve seen businesses ranging from adult mental health counseling to food processing to ethnic food to a selfie museum. I think that kind of variety is really cool."