The FY26 Merchant Organizing Grant, administered by the Neighborhood Development Division (NDD) of the NYC Department of Small Business Services (SBS), aims to support commercial districts and merchants associations across New York City. The grant seeks to strengthen and revitalize commercial corridors by encouraging the formation of new merchants associations or expanding and revitalizing existing ones. This initiative focuses on fostering relationships between merchants, developing partnerships, and increasing the local capacity to sustain commercial revitalization efforts beyond the grant term. Eligible nonprofit organizations must propose place-based projects that actively engage merchants to create a unified business voice and community-driven initiatives.

Grant funding of up to $100,000 per neighborhood will be available to nonprofit organizations to lead merchant organizing efforts. Grantees are encouraged to implement at least one demonstration project that aligns with the following categories: Business Attraction, Business Support and Retention, Cleanliness and Beautification, District Marketing, or Placemaking. These projects are expected to generate merchant engagement and demonstrate the tangible benefits of joining a merchants association. Additionally, grant recipients must align their projects with best practices outlined in the SBS’ Comprehensive Guide to Starting a Merchants Association.

Eligible applicants must be incorporated nonprofit corporations operating in New York State, be in compliance with city, state, and federal tax and filing requirements, and demonstrate financial integrity. Applicants must also ensure that neither their organization nor its officers are engaged in litigation against the City of New York. Priority will be given to applications proposing projects in neighborhoods without existing Business Improvement Districts (BIDs) and where SBS currently has no multi-year place-based investments.

The grant operates on a reimbursement basis, meaning grantees will be required to demonstrate that expenses have been paid before requesting reimbursement from SBS. Funding can be used for personnel services related to the grant’s administration, fringe benefits (capped at 20% of personnel costs), operational expenses, and direct project costs such as marketing, community engagement activities, and professional services. However, funds cannot be used for re-granting, direct business subsidies, construction, lobbying, or alcohol purchases.

Applications must be submitted online via SurveyMonkey Apply no later than 11:59 p.m. on Sunday, April 20, 2025. Applications will be reviewed competitively by an SBS Review Committee based on three key criteria: Organizational Capacity (25 points), Proposal Strength (65 points), and Need (10 points). Applicants must provide detailed plans outlining their project goals, timelines, engagement strategies, and budgets. Successful applicants will be required to participate in scoping meetings, provide regular progress reports, and comply with SBS monitoring requirements.

For more information, applicants can contact SBS at neighborhoods@sbs.nyc.gov. The grant period will run from July 1, 2025, to June 30, 2026, during which projects must be implemented and completed. Applicants are advised to review SBS’s merchant organizing resources and ensure their compliance with procurement and registration requirements before applying.