The city of San Diego announced Tuesday a commitment of up to $2.5 million to fund a business incubator for historically low- and moderate-income neighborhoods.
The city will partner with Connect, which assists San Diego technology startups, and the Jacobs Center for Neighborhood Innovation.
“Having a network of resources will give entrepreneurs and start-up businesses the strategic boost they need to grow and thrive,” Mayor Kevin Faulconer said. “This is all about creating more opportunities for San Diegans across the city with a special focus on underserved communities.”
The city will provide an initial capital investment of $1 million in the first year and up to $500,000 for each of the next three years for the as-yet unnamed organization’s launch and management. The total financial commitment is up to $2.5 million over four years.
The business incubator will be located in a 4,300-square-foot space in the Jacobs Center, which is located in a Promise Zone, where the federal government partners with local officials to boost economic activity.
“This accelerator will provide the tools and resources that budding entrepreneurs need to bring their dreams to fruition,” said Councilwoman Barbara Bry.
The councilwoman is an associate director of Connect, which provides business management assistance, mentorship, access to capital and other resources to developing companies.