Venture Portland, Which Funds Business Districts for the City, Likely to Get the Ax

Venture Portland, a nonprofit that provides grants to business districts across the city that support small businesses, may get axed from the city’s payroll this year.

That’s according to Andrew Fitzpatrick, interim director of economic development for Prosper Portland, which has historically provided city general fund dollars to Venture Portland, which in turn distributes the money through grants to the city’s business districts.

In a March 3 email to leaders of business districts in all six quadrants of the city, Fitzpatrick wrote that Prosper would likely stop sending $380,000 of the city’s general fund to Venture Portland, which, according to the nonprofit’s latest tax filing, has 17 employees and annual revenues of $1.3 million.

Those cuts, Fitzpatrick wrote, would “effectively [eliminate] the city’s support” of Venture Portland.

“This has been a difficult process, and we regret that there will likely be impacts on the Venture Portland staff who have been dedicated to delivering these important services....We deeply thank the Venture Portland team for their years of partnership and commitment to Portland’s small businesses and the business district community.”

The city faces a $92 million shortfall in its general fund this year, and most bureaus were asked to prepare for an 8% budget reduction. Fitzpatrick assured business associations that Prosper taking money away from Venture Portland wouldn’t mean an end of city support for business districts.

“Prosper Portland remains committed to supporting all business districts throughout the city,” Fitzpatrick wrote. “Should City Council vote to move these proposed cuts forward, our staff will work to maintain similar levels of grant funding for business districts and will manage other district assistance internally.”

Basically, Fitzpatrick says, Prosper would bring the funding for business associations in-house, rather than funnel it through a nonprofit. But Fitzpatrick did not provide details of how Prosper, if it’s asked to cut its budget by 8%, would continue to support the business groups.

Fitzpatrick also pointed out that more than 80% of Venture Portland’s general fund money goes “to staffing, administration, and operational costs,” while 19% is “dedicated to business district support in the form of grants.”

Prosper spokesman Shawn Uhlman tells WW that the proposal “creates broader collaboration throughout the city, enables us to be more inclusive, and, through the Office of Small Business, ensures we can support local business owners and provide them with the resources and assistance they need.”

Venture Portland distributed $95,000 in tax year 2023 to 11 business districts across the city, including the Williams Vancouver Business Association, St. Johns Boosters, Montavilla East Tabor Business Association, the Lloyd Community Association, and the Lents Grown Business Association. Most of the business associations have modest budgets of less than $50,000—so the Venture Portland cuts could mean a significant chunk of funding is gone for those associations, unless funding is sustained by Prosper.

Of the nonprofits' $1.3 million in revenue in tax year 2023, $744,000 went to salaries, wages and benefits for Venture Portland staff and management. The executive director, Joy Church, was paid $117,000.

Church said she could not comment before meeting with the nonprofit’s board of directors and executive committee.

Neil Mattson, president of the Montavilla East Tabor Business Association, says he’s concerned about the impacts to business associations, including his, if Venture Portland is cut out of the picture.

“It’s disappointing to hear that we’re going to lose the advocacy, support, resources and funding from a key partner in Venture Portland who has helped us survive and emerge from the pandemic,” Mattson says.