PROVIDENCE – A new, $1 million equity investment program could provide up to $100,000 in investments to Providence-based companies in return for equity stakes.
The Innovation Investment Program, funded through a $10 million urban loan program of the U.S. Department of Housing and Urban Development’s Community Development Block Grant, was announced by the city of Providence on Tuesday.
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The program will provide capital to startups or existing ventures that have “significant growth potential in the global knowledge-based economy,” the city said in a news release, noting that it is neither industry nor sector specific but hopes to reach technology-enabled, innovation-focused companies across all sectors.
Companies that show at least $2 of private investment for every $1 of investment from the IIP will be given priority. For every $35,000 IIP investment, the companies must hire at least one low-to-moderate income employee.
“By making new capital available to innovation-driven ventures, Providence is giving graduates good reason to stay and grow their businesses here,” said Jack Templin, Providence Economic Development Partnership board member and member of the board of directors of the R.I. Economic Development Corporation.
The city expects to recover its full investment in each company and possibly make gains. The IIP investment is expected to be returned if the company relocates outside of Providence.
Applications will be processed on a rolling basis by the Providence Economic Development Partnership; to apply call the Department of Planning and Development at 401-351-4300.
