Business Improvement District Formation Grants

The BID Formation Grant Program, administered by the New York City Department of Small Business Services (SBS), is designed to support the planning and development of Business Improvement Districts (BIDs) in New York City's underserved commercial corridors. The program aligns with the city’s broader economic recovery strategy and aims to strengthen small businesses through place-based revitalization, formalized local partnerships, and long-term investment frameworks. Eligible applicants must be nonprofit community-based development organizations (CBDOs) operating within the five boroughs of New York City that are actively coordinating, hosting, or serving as fiscal conduits for formal BID Formation Steering Committees. These committees must have already conducted and analyzed needs assessment surveys. Targeted neighborhoods must have completed a Commercial District Needs Assessment or equivalent reviewed by SBS. Up to $100,000 per year per neighborhood may be awarded for staffing, planning, and implementation costs necessary to advance BID formation proposals. Grantees are expected to progress through one or more of the BID development phases: planning, outreach, or legislation. Permitted use of funds includes personnel services (e.g., hiring a full-time project manager), database development of property owners and merchants, stakeholder outreach, public engagement, demonstration projects, and supplemental services like sanitation or public programming. Up to 50% of funds may go toward subcontracting. Indirect costs are capped at 10%, and OTPS costs (office expenses, equipment) also cannot exceed 10%. Certain expenses, such as direct re-granting to businesses, construction, and lobbying, are explicitly prohibited. The application process includes submitting organizational documents, program strategy narratives, proposed budgets, steering committee attestations, and a letter of support from the local City Council Member. Required components include development of the steering committee and property database management, though applicants may also propose demonstration projects. Applications were submitted via SurveyMonkey Apply, though the cycle has since closed. Grantees will engage in contracting and compliance tasks post-award, including registration with various city portals, insurance provision, and ongoing reporting. They must also participate in monthly program check-ins, site visits, and best practice convenings hosted by SBS. The award term runs from July 1, 2025, to June 30, 2026. Although applications are now closed, the program is recurring and likely to reopen for the next fiscal year based on historical cadence.

Proposals should demonstrate alignment with CDNA priorities, document prior accomplishments, and define a strong steering committee structure to advance through legislation.