grants
Frequently Asked Questions(FAQ)
If you don’t see your question/or have further questions, please email
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- All
- Stabilization Grant
- Emergency Grant
- Eligibility
- General
- Required Docs
A business must meet all of these eligibility requirements to successfully receive a Stabilization grant from The Merchants Fund.
- Business is located in Philadelphia;
- Business is independently owned and operated (franchises are eligible if independently owned and operated);
- Business has been in operations for a minimum of two years;
- Business is the owner’s primary source of income;
- Business operates a storefront or physical location (food trucks and kiosks are eligible);
- Business is in compliance with all federal, state, and local taxes (or on an approved payment plan);
- Business has the required federal, state, and local licenses and permits to operate legally;
- Business made no less than $50,000 in total sales (also known as revenues) in the last tax year and no more than $750,000 in the last tax year;
- Business must be able to show a financial need for the potential grant.
There are also eligibility requirements based on business type and industry. For instance, this grant does not fund non-profits, or professional service firms, private clubs, daycare or childcare centers, and more. For a more detailed list of ineligible business types, please see the Stabilization page. Please note: The Merchants Fund retains full discretion to deem a particular business or business type ineligible. Grant cycles are competitive and The Merchants Fund is often unable to fund all eligible grant requests.
You can email [email protected] if you have any specific questions. Additionally, you can visit our coaching page HERE to schedule a 15 minute call for additional help. This is free of charge and recommended for business owners who are a bit unsure as to any questions on the application or would like assistance on setting up their application for success.
No, we ask that you complete these tax returns to meet eligibility requirements. Please contact one of our partners or [email protected] to be connected to potential tax preparers and accountants. If prior year tax returns are not due yet or you have filed an extension that is acceptable, as it is still in compliance. (Ex. It is February 2026, and you have not yet filed your 2025 tax returns. This would be OK, as the deadline for filing is not yet due.)
We ask that you either submit a prior year profit and loss statement or prior year Federal tax returns. This gives us a better picture of the business’ current financial health. If you do not have a bookkeeping system that can prepare them or an accountant that can prepare them, you can use this simple template found HERE. Additionally, you can learn more about how to create a profit and loss statement watching this VIDEO. Lastly, if you are struggling to complete this, you can schedule a call for coaching HERE.
Year to date profit and loss statements do not need to be down to the penny, especially if you are a very small business that struggles with bookkeeping. You can show your year to date sales, and rough expenses across various expense categories like rent, cost of goods sold, etc.
Firstly, we understand how hard it can be to operate a small business. Multiple members of our staff have owned or currently own small businesses in Philadelphia. It is often exhausting, rewarding, stressful, exhilarating, and anxiety inducing all wrapped into one. However, TMF grants are not to be used for working capital expenses. Unfortunately, we do not grant funds to cover cash shortfalls.
(Example: Jim’s Restaurant makes $20,000 a month in sales but spends $25,000 in expenses. The restaurant is behind on rent, utilities, and may not meet payroll this month. Though Jim tries, the business is simply not covering its bills.) These past due bills and typical monthly expenses are ineligible for a TMF grant. You can schedule a call with a business coach to discuss next steps for your business and possible exit strategies, but this would not be an eligible grant request.
One time large expenses or events that put a business at risk of closure–a broken piece of equipment, a road closure that disturbs foot traffic, a flood event–are all eligible for TMF Emergency grants, which can help businesses during emergencies outside of their control.
No. Any legally operating business is eligible to apply. Please note, businesses must be in compliance with all federal, state, and City code and regulations to be eligible for a grant.
A debt schedule is simply all of your business debts compiled into one place. To prepare for the application, we ask that you have a list of all of your current business debts and the associated interest.
For example, a list may look like:
- Family Loan – Original Amount $50,000, Current Amount $20,000, Monthly Payment N/A, Interest Rate 0%.
- Chase Credit Card – Current Amount $10,100, Monthly Payment $250, Interest Rate 12%.
- SBA Loan – Original Amount $25,000, Current Amount $5,500, Monthly Payment $200, Interest Rate 5.5%.
Businesses must show a clear need for a Stabilization grant. The grant should help a business sustain or grow operations–not pay for normal working capital expenses.
An example to sustain business operations: Julio’s Bakery has an old and failing deck oven. Julio’s bakery requests $10,000 to replace the oven and continue operations.
An example to grow business operations: Joe’s Barbershop is seeing an increase in customers. Lines are long and they have to turn people away. Joe would like to purchase 3 new barber chairs to service more customers but doesn’t have the money to do so. Joe requests a $10,000 TMF grant to purchase more chairs, update the interior of the business, and grow the business.
Businesses can apply for an Emergency grant at any given time after an Emergency occurs. To better understand what constitutes an emergency, please visit our EMERGENCY GRANT page.
Business can apply for an Emergency grant any time an emergency occurs. There is a lifetime maximum grant amount that a business can receive. Let’s say your business experienced an act of vandalism and received a grant, and then a year later was affected by a major public works disruption like a street tear up, you’d be eligible to apply again. To learn more please visit the Emergency grant page HERE.
Businesses that have already received a Stabilization grant from TMF within the last 24 months are not eligible to apply again. Our goal is to help as many businesses as possible in the City of Philadelphia, so we limit repeat grantees by time. Business that have applied for a Stabilization grant within the last 12 months are not eligible to apply again.
Emergency grants are a separate program, and do not affect your eligibility for Stabilization grants. Emergency grants currently have a lifetime maximum of $20,000. If you have received an Emergency grant under that level and you experience another qualified emergency, you can apply again. Businesses who have already received $20,000 in Emergency grants, whether through a single grant or multiple grants, cannot apply again.
All TMF grantees, and our applicants, are eligible for free business coaching! You can learn more about our coaching and schedule an introductory 15 minute call HERE.
If you are ultimately awarded a grant, you will then become eligible for free longterm business coaching. Likewise, if your application is ultimately denied, we will provide the reasons for denial, action items to assist you and your business, and, if available, access to TMF coaching.
Coaching can address anything from application assistance, to a one-off issue like reviewing a lease or quote, to long term business strategy and planning.
For Stabilization grants, our goal is to review all applications and notify applicants of our decision within 45-60 days of the submission period ending. Please note, Stabilization Grants open twice a year for specific application periods.
For Emergency grants, unless there is a mass emergency with a specified submission period, our goal is to review all applications within 1 week of a complete submission.
Please note: approximately 60 percent of all emergency applications require additional information from the applicant in order to make a decision. Decisions typically take 1 to 2 weeks from the time when all necessary information has been received from the applicant.
If deemed necessary, TMF will request a site visit with an applicant where we will meet you in person at your place of business and learn more about your business’ operations, your business story, and your goals. No additional action is required, except scheduling the meeting. It is one of our favorite parts of the job – learning about our grantees, their businesses, and helping them achieve their business goals. This is a chance for you to show us your place of business, share your story, and connect with TMF face to face.
You can check out the glossary HERE if you’d like some definitions of common business terms. Additionally, our RESOURCES page has a wide range of helpful documents and one pagers discussing common business topics like leases, bookkeeping, and inventory management. If you still have questions, you can visit our COACHING page to schedule a free call to discuss.
Examples of Eligible Uses of Stabilization Grant Funds:
- Replace failing equipment or upgrade equipment to meet new opportunities or customer needs;
- Repair issues with a commercial space or upgrade the commercial space to meet new opportunities and customer needs;
- Take advantage of new growth opportunities (upgrade an e-commerce platform, purchase a new payment processing systems, purchase new equipment or items to increase your revenue streams or product lines);
- Use funds to operationalize business (bookkeeping, website creation, etc.). This is often done in tandem with TMF support and coaching.
In very specific circumstances, Stabilization Grants can be used to pay down debt or purchase inventory. Specific instances may include: accrued debt used to continue operations during a disaster (flood, road closures, fire, etc.), purchasing bulk inventory to save on costs or prepare for a large event, assisting a stable/profitable business to pay debts that were accrued when the business was struggling, etc.
Examples of Ineligible Uses of Stabilization Grant Funds:
- Building cash reserves or a “rainy day” fund;
- Normal working capital expenses such as rent, payroll, day-to-day inventory, or past due debts due to lack of profitability;
- Owner salary;
- Unclear, ambiguous grant asks (e.g. ‘I will use the money to improve my business and help my customers.’)
We can provide baseline coaching for business owners looking to exit their business. There are many programs, workshops, and cohorts that assist businesses in Philadelphia with succession planning. Unfortunately, these programs often start and stop, have specific eligibility requirements, or may fill up quickly. If you are having trouble finding or accessing a program, feel free to contact us.
If you are a grantee of The Merchants Fund, we can provide long term coaching to assist with any of your succession planning goals. Visit our Coaching page for more information and to schedule a meeting.
Unfortunately, The Merchants Fund receives more quality applications than we are able to fund. Our Stabilization cycles can be very competitive. If you applied for a grant but did not receive funding, we will let you know why your grant was not approved, and provide other resources that may assist you and your business.
As an organization we are committed to providing grant dollars that provide the most impact to businesses looking to stabilize or grow–often we have to make difficult decisions on who and what to fund.
Businesses facing hardship due to qualifying events such as fire, natural disasters, extreme acts of physical vandalism, utility failure, or a highly disruptive public works projects like road closures and street tear ups. Businesses must be able to show monetary or physical damages caused by the emergency event. (Ex. A major loss in revenue due to a prolonged street closure; documentation of a broken door and stolen product due to vandalism; evidence of a fire and associated costs, etc.)
NOTE: If the emergency does not fall into one of the categories above, email [email protected] before completing an application to see if you qualify for our program.
Need-based financial assistance is considered a gift under Section 102 of the Internal Revenue Code, and is therefore not considered taxable income. TMF is not providing tax advice. Please consult a tax professional regarding how this grant is reported.