Idaho Gem Grant - Analysis of Business Incentive Manual | Idaho Economy

11. Idaho Gem Grant

Key Details:

Assists rural communities in economic development projects
Open to rural communities with population of 10,000 or less
Applications must be submitted by city, county, or tribal government
Focused on job creation and retention
Grants up to $50,000
Cannot be used for ongoing overhead, operating costs, or staff costs

ANALYSIS

While aimed at benefiting rural communities, the Idaho Gem Grant program is structured in a way that provides limited direct benefits to individual small businesses. Its focus on community-level projects and job creation suggests a preference for initiatives that support larger or growing businesses rather than directly aiding small businesses under 20 employees.

Small Businesses

For small businesses under 20 employees, the Idaho Gem Grant program offers limited direct benefits. While the program is designed to support economic development in rural communities, individual businesses cannot apply for these grants directly. The requirement for applications to come from local governments means that small businesses have little control over the application process or the types of projects funded. The focus on job creation and retention may indirectly benefit some small businesses if it leads to improved local economic conditions, but the program does not provide a mechanism for small businesses to directly access funds for their own growth or operations. The maximum grant amount of $50,000, while significant for community projects, is not structured to provide direct financial support to individual small businesses. Additionally, the prohibition on using funds for ongoing overhead, operating costs, or staff costs limits the potential for these grants to directly support the most pressing needs of many small businesses. While some small businesses in rural communities might see indirect benefits from Gem Grant-funded projects, such as improved infrastructure or economic development initiatives, the program is not designed to provide targeted support to small businesses under 20 employees. The emphasis on job creation may also favor businesses planning significant growth over smaller, stable businesses that make up much of the rural economy.

Big Businesses

For larger businesses, particularly those considering expansion into or within rural Idaho, the Idaho Gem Grant program can offer significant indirect benefits. While not a direct business incentive, Gem Grant funds can enhance the economic development capabilities of rural communities, making them more attractive locations for business operations. The program's focus on job creation and retention aligns well with the impact that larger businesses or rapidly growing companies can have on rural economies. Larger businesses can benefit from community-level improvements funded by Gem Grants, such as infrastructure upgrades or workforce development initiatives, without having to bear the full cost of these improvements. The $50,000 maximum grant amount, while not large in the context of major business investments, can be significant in rural communities and may tip the balance in favor of a particular location for business expansion. While large businesses cannot directly access these funds, they can work with local governments to advocate for Gem Grant-funded projects that align with their operational needs or expansion plans. For out-of-state companies considering rural Idaho locations, communities with access to Gem Grant funds may be more attractive due to their demonstrated commitment to economic development. For large in-state businesses, Gem Grant-funded projects can enhance the viability of rural expansion plans by addressing community-level barriers to growth. The program's structure, requiring local government application and administration, ensures that funded projects have broad community support, which can be reassuring for businesses considering long-term investments in rural areas. Overall, while not a direct incentive, the Idaho Gem Grant program can significantly contribute to making rural Idaho locations more attractive and viable for larger business operations, particularly those capable of driving substantial job creation and economic growth in small communities.