The Urban Redevelopment Authority of Pittsburgh announced on Wednesday that it is launching two new programs in efforts to grow minority entrepreneurship and business expansion.
The programs are URA Ventures and the Minority and Women-owned Business Enterprise Developer Equity Fund. In total, the URA is looking to raise $5 million in capital to fund the programs, using a mix of funding from Community Development Block Grants, the URA’s revenue sources, the American Rescue Plan Act, local and state sources and other public and private sources.
“The City of Pittsburgh holds tremendous economic opportunity,” Mayor Ed Gainey said. “But we need to work together to ensure that this opportunity is equitable and that it empowers MWBE entrepreneurs that for too long have been left behind. If we are going to grow our city then we need to grow and invest in our minority businesses.”
Pittsburgh has low rates of Black entrepreneurship and business ownership especially, ranking the lowest in the rate of Black-owned businesses among 50 of the nation’s largest metros in a recent study by LendingTree.
URA Ventures will have three programs within it: Main Street Ventures, Pittsburgh Entrepreneur Fund 2.0 and Venture Co-Investment. The URA said that the objective of URA Ventures is to make strategic investments and increase access and availability of capital to disadvantaged small businesses, as well as job creation and economic growth within the city. The URA will allocate $3 million to URA Ventures, which will impact 41 businesses and create over 80 jobs.
The MWBE Developer Equity Fund will be allocated the remaining $2 million, and it will provide direct equity investments in MWBE-sponsored real estate development ventures.
“This investment is designed to provide a multitude of benefits,” URA Executive Director Greg Flisram said. “From lowering barriers to entry and increasing access to capital to supporting MWBE-led small businesses and job creation, these programs encourage quality, locally controlled, wealth building and economic stability opportunities for Pittsburgh communities, particularly those located in an Avenues of Hope corridor.”
The URA’s board of directors is scheduled to meet virtually on March 10 at 2 p.m. to vote on guidelines for the programs.
