San Francisco’s storefront grant program is helping businesses take over vacant spaces, and most of its earliest recipients remain open three years after the effort began. Of 74 businesses supported in the program’s first two funding rounds in 2023, 11 later closed, according to figures reported by the city. In the first cohort, 55 businesses remain at their original locations and three have relocated. The city has distributed $5.3 million through its Storefront Opportunity Grant program since it launched. The latest round awarded between $50,000 and $100,000 to 39 business owners earlier this summer. Most are still preparing to open. One recipient, Chicken Fried Palace in the Mission District, opened briefly before closing; its owner cited sidewalk problems and a health scare. Other recipients are using the funds to cover the high upfront costs of opening. Freshroll used a $100,000 grant to launch a third location downtown. Compton’s Coffee House plans to open a third shop in a Financial District space previously occupied by Starbucks. Owner Aidan Compton said years of neglect had left the storefront difficult for a new business to take on. The grant helped his team hire an architect and contractor to complete the build-out. The program was created by the city’s Office of Economic and Workforce Development to address commercial vacancies worsened by the COVID-19 pandemic and the rising expense of opening a small business in San Francisco. Retrofitting a space to meet current building codes and securing permits can be among the largest costs, particularly in older storefronts. For Andy Morales, a $25,000 grant helped turn five years of repairing cars in a one-car Potrero Hill garage into a larger mechanic shop on a busier Bayview street. “It gave me a lot of breathing room,” Morales said. The city’s newest round focuses on neighborhoods including the Tenderloin and Excelsior, as well as Bayview, Chinatown, downtown, Fillmore and Mid-Market. In the Tenderloin and Excelsior, businesses can receive grants, help finding a storefront and six months of support from a business adviser. Owners in other participating areas who already have leases can receive grants and assistance as they prepare to open. The city previously set aside a Tenderloin round that paired grants with business support. One recipient, Yemeni restaurant Falafelland, opened on Golden Gate Avenue. Owner Billy Alabsi lost an earlier restaurant during the pandemic after falling behind on rent. He said replacing the equipment he had managed to keep would now cost far more; the $50,000 grant helped him make dining-room furniture, while city staff helped him navigate the search for a new location. City officials say a business closure does not necessarily erase the value of the investment, since improvements to a storefront may make it easier for another business to move in. Kate Patterson, the workforce office’s director of external affairs, said those upgrades can leave a space more suitable for its next tenant. Evan Mather, owner of Custom Fit, is preparing to open his fourth gym location downtown. His $50,000 grant is helping pay for equipment, construction and labor—expenses that come before a new location begins earning revenue.