Jefferson County extends contracts for two small‑business startup programs

Jefferson County commissioners voted to extend and modestly increase two contracts for small‑business startup services after staff reported the organizations exceeded their performance targets.

County staff said the county will increase each contract from $100,000 to $120,000 to continue support services for entrepreneurs. The contracts cover early‑stage business planning, marketing guidance and one‑on‑one mentoring aimed at helping residents test ideas and form viable companies.

The county’s economic development staff told commissioners the programs target very early‑stage entrepreneurs — people with business ideas who have not yet scaled to multiple employees or significant revenue — in contrast with other local providers that primarily assist already‑established firms. Staff said the organizations exceeded their goals last year: one contract set a target of serving 75 businesses and instead reached roughly 300 businesses and provided about 10 one‑on‑one mentorships; the other was contracted to engage 50 residents and provide 25 one‑on‑one sessions and reported working with 134 residents and conducting 41 one‑on‑one sessions.

Jeremy Duckworth, representing CARA (Central Alabama Redevelopment Alliance), highlighted a lender matchmaking event that connected business owners to SBA lending and local CDFIs, and said workshops covered planning, accounting, operations and marketing. "That event is very unique because we get a chance to provide business owners direct funding from the SBA," Duckworth said, describing capital outcomes from the matchmaking.

Gloria Gasco, program manager for HICA’s community development program, said her organization provides bilingual technical assistance and has developed a CDFI lending arm that began piloting loans in 2019. "To date, we have linked nearly a million dollars to these businesses, with only one default of less than $5,000," Gasco said, attributing sustained repayment to the program’s one‑on‑one coaching.

Several commissioners thanked the presenters for community outreach but pressed staff for the county’s rationale and how funds are allocated. One commissioner asked why the county appears to be funding similar services at slightly different levels — noting the county gives $150,000 to one business resource center and is approving $120,000 for these early‑stage providers — and asked staff to confirm the programs are not duplicative. Economic development staff said they prioritize organizations that fill gaps in the ecosystem (early‑stage assistance rather than growth‑stage incubation), compare local peer funding levels around the Southeast, and set targets for residents served, businesses assisted and expected job and revenue impacts.

A motion to approve the agenda items covering these contracts was made, seconded and carried by voice vote.

County staff and the contracted organizations were asked to continue reporting outcomes and to provide clearer comparisons with other local providers when future allocations are considered.