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Nevada's $4.1M small-business grant program struggles to attract applicants as spending deadline looms
A $4.1 million state grant program aimed at helping Southern Nevada small businesses grow has disbursed funds to only 26 companies so far, and officials warn that any unspent money must be returned by the end of next year.
A multimillion-dollar grant program designed to help small businesses in Southern Nevada expand and create jobs is struggling to attract applicants, with officials warning that time is running out to put the money to use.
The Capital Readiness Program, which includes a $4.1 million grant intended to re-energize the state's economy, has so far guided just 26 businesses through its offerings, according to Chris Shelton, who works with the program. Many entrepreneurs simply don't know the funding exists, he said.
"Our whole model with the Capital Readiness program is startup, stay up and scale up," Shelton said. "The program is working, but we have so much more money to spend down, but we need people to join in order for us to provide these resources."
The grant is structured as a reimbursable award, meaning businesses must first spend their own money and then seek repayment. Every dollar must be spent by the end of next year or it will be lost, Shelton said.
One business that has benefited is Core Martial Arts in Henderson, owned by Annie Kang-Drachen. The studio, which she has run for 12 years, offers lessons that build confidence over time.
"I get to see the shyest kid come in... three years later, I'm looking at them like, is that the same girl that worked in the door?" Kang-Drachen said.
Expanding the business brought new challenges, she said, including learning how to access support designed for small businesses.
"It's been a business boot camp, kind of going back to fundamentals, relearning things, accessing resources that I didn't realize was out there," she said.
Through the program, Kang-Drachen learned how to pursue the capital needed to scale and create jobs, along with the responsibility that comes with growth.
"Scary, because now you're responsible, not only for your membership base, right? But now you're responsible for employees, right? But it's also very exciting," she said.
Kang-Drachen said she is also training employees with the goal of helping them one day open their own operations, building future leaders in the process.
Shelton urged other business owners to take advantage of the support while it lasts.
"I'm trying to drown you in this because we have so much money to give away, and it's free. Why would you not take advantage of this?" he said.
Business owners interested in the program can find more information at nvcapitalreadiness.org.