Philadelphia is betting big on its small businesses. On Feb. 5, Philadelphia’s Director of Commerce, Alba Martinez, alongside elected officials and city leaders, announced the launch of the Philadelphia Small Business Catalyst Fund during a press conference in City Hall.
This $5 million investment is designed to fuel the growth of high-potential small businesses and entrepreneurs throughout the city. During the press conference, local small business owners shared firsthand how this type of funding can help them expand and thrive. Zach Wilcha, CEO of the Independence Business Alliance, voiced his support for the fund, highlighting its significance for LGBTQ+ small businesses. The initiative aligns with Mayor Cherelle L. Parker’s commitment to Economic Opportunity for All and supports the PHL Open for Business Executive Order, which aims to strengthen Philadelphia’s business environment and reduce barriers to success.
“Philadelphia’s small businesses and entrepreneurs are the backbone of our economy, and we are committed to supporting their success,” Parker said in a statement. “Our goal is to ensure that all Philadelphians have access to economic opportunity. The Small Business Catalyst Fund is a critical step in driving innovation and fostering economic development. This initiative complements our broader business support ecosystem, which includes the Mayor’s Business Action Team and more than $19 million in education, mentorship, professional services, and financial assistance. We are excited to see the impact this fund will have on our city’s entrepreneurs.”
Martinez echoed the mayor’s sentiments, emphasizing the fund’s strategic approach.
“This initiative is not just about financial support — it’s about accelerating success,” she said. “We designed the Small Business Catalyst Fund based on insights from local businesses, diverse Chambers of Commerce, and industry experts. By streamlining the application process and implementing proactive outreach, we aim to eliminate outdated barriers to growth. What we learn from this initiative will help refine other city programs to better serve the businesses driving Philadelphia’s economy forward.”
How the Small Business Catalyst Fund works
The fund is designed to provide businesses with more than just financial assistance—it connects them with education, mentorship, capital, and strategic guidance. It also incorporates a data-driven approach to simplify and streamline the application process, making it easier for businesses to access support. Additionally, it fosters collaboration across Philadelphia’s business ecosystem, ensuring that every entrepreneur has the opportunity to start, grow, and succeed.
Launch and implementation
The Philadelphia Department of Commerce will roll out the Small Business Catalyst Fund in phases. To maximize accessibility, the department will host community meetings, workshops, marketing initiatives and direct outreach efforts. The Catalyst Expression of Interest form will open in April 2025, allowing businesses to indicate their readiness for growth. For updates and notifications about the application process, business owners are encouraged to stay connected with the Department of Commerce.
Eligibility Criteria
Businesses interested in applying for the fund must meet the following criteria:
• Demonstrate strong growth potential with a clear expansion plan
• Contribute to local economic impact, strengthening neighborhoods and creating jobs
• Show resilience and innovation despite challenges accessing traditional funding
• Generate less than $2 million in revenue (2024)
The fund includes dedicated funding for key sectors such as life sciences, manufacturing, the nighttime economy, the creative economy and commercial corridor real-estate acquisition.
A step forward for Philadelphia’s small businesses
The Philadelphia Small Business Catalyst Fund represents a significant investment in the city’s entrepreneurial community. By providing financial resources, mentorship and strategic support, the initiative aims to create a thriving business environment where all entrepreneurs, including LGBTQ+ business owners, can succeed. As the fund launches and evolves, it promises to be a transformative force for Philadelphia’s economic landscape.
The press conference concluded with a red ribbon cutting, symbolizing the cutting of red tape for small business owners. This gesture underscored the city’s commitment to reducing hurdles and making Philadelphia a more business-friendly city.
