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Inventive new loan program for businesses boosts commercial corridors, starting in Germantown

Rose Petals Cafe, after

Rose Petals Cafe, before

Rose Petals Cafe, after

Flying Kite readers should remember the address 322 W. Chelten Avenue — the Germantown storefront was a site for our "On the Ground” program, a year-long initiative that activated underutilized spaces in under-covered neighborhoods. Thanks to a new loan program from the Commerce Department, 322 W. Chelten Avenue is now home to a thriving new business, Rose Petals Café & Lounge.

The InStore Forgivable Loan Program targets retail, food and creative businesses on commercial corridors that serve low- to moderate-income communities. The loans enable businesses to purchase equipment and materials in order to expand or open a new location. The Department of Commerce had previously offered grants for façade renovations through its Storefront Improvement Program, but a funding option for interior improvements did not exist.

"The program helps to revitalize Philadelphia's commercial corridors as the backbone of residential neighborhoods," says Jonathan Snyder, Sr. from the Commerce Department. "InStore Loans strategically invest in businesses that will increase foot traffic, improve the retail mix, enhance existing businesses, create jobs, and provide goods and services." 

The loans range between $15,000 and $50,000, and are forgiven if the recipient meets program guidelines for five years. For Rose Petals, the funding covered the cost of critical start-up supplies, including refrigeration units, a hood and exhaust system for the stove, new floors, shelving units, a copper ceiling and a coffee bar.

Rose Petals was selected because of its proximity to public transportation and distinction as one of the neighborhood's only sit-down restaurants. As the first business to receive an InStore Loan, the cafe influenced the program's development.

"They were selected as the pilot recipient to help us refine the application process to ensure it was as efficient as possible for future applicants," explains Snyder.

The InStore Program is now available for businesses on more than 88 eligible commercial corridors throughout the city. 

Writer: Nicole Woods
Source: Jonathan Snyder, Department of Commerce
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