In a major push to reclaim downtown San Francisco's commercial vitality, the Downtown Development Corporation (DDC) has unveiled a $25 million fund to help small businesses open, expand, and thrive. The initiative is designed to build on the momentum of previous recovery efforts and inject new life into the city's economic core.
The new Downtown Business Fund promises a combination of private capital and operational support for merchants, signalling a concerted effort to fill vacant storefronts and activate key commercial corridors. The program will initially focus on Powell Street between Union Square and Market Street, as well as the Moscone Center corridor along Stockton and Fourth Streets.
Shola Olatoye, CEO of the DDC, said the fund is meant to show there is "no wrong door for businesses that want to be downtown". Priority will be given to businesses that enhance street life and attract visitors, which is crucial for an area still recovering from the pandemic's impact.
The support offered is comprehensive, breaking down into three main categories. Businesses can apply for grants of up to $500,000 to assist with tenant improvements, equipment purchases, and other startup costs. The fund will also offer loans ranging from $100,000 to over $1 million, featuring below-market interest rates and flexible repayment terms. Finally, it provides technical assistance, offering expert guidance on leasing negotiations, storefront design, navigating the city’s permitting process, and technology integration.
Building on recent momentum
The announcement comes at a pivotal moment for downtown San Francisco. After significant losses in 2023 and 2024, which saw major retailers like Nordstrom and The Gap depart, the area is showing signs of a turnaround. Over the past year, the retail market has absorbed approximately 180,000 square feet of space, a welcome reversal of the previous trend.
This renewed leasing activity, coupled with the return of retailers like Uniqlo to new locations, suggests that confidence in downtown's future is growing. City leaders and business partners are keen to nurture this nascent recovery.
The fund represents a significant public-private partnership. Citizens Bank and JPMorgan Chase have each committed $10 million, with Google also joining as an early backer. This financial firepower is amplified by pro-bono contributions from architecture firm Gensler Architects and law firm Cleary Gottlieb Steen & Hamilton LLP.
A new vision for downtown
The revitalisation of downtown is not just a matter of civic pride; it is an economic necessity. The area is responsible for a staggering 40 per cent of San Francisco's general fund, making its health vital for funding city services from parks to public safety. "We have to figure out how to not only sustain, but grow that," Olatoye said.
Olatoye noted that the anaylsis of consumer behaviour shows a fundamental shift in how people experience retail. The focus is increasingly on unique experiences, particularly around food and beverage. This fund aims to directly address that trend. "It’s no surprise that the corridor that we call the ‘hospitality zone’ is severely under-resourced for food and beverage," she added, highlighting a key area for potential growth. This strategy mirrors a global trend where independent and experience-focused businesses are becoming major draws, a theme explored in Equinox SoHo blends luxury fitness with neighborhood aesthetic.
Mark Valentino, who oversees business banking at Citizens Bank, framed the investment as a long-term commitment. “Small businesses are the backbone of a healthy downtown, and expanding access to capital is central to Citizens’ work in San Francisco,” he said. Similarly, Ben Walter, CEO of Chase for Business, said the collaboration aims to "help create more resilient neighborhoods and a more prosperous city.”
Lessons from Vacant to Vibrant
The new fund is not starting from scratch. It builds directly on the lessons learned from the city’s pandemic-era Vacant to Vibrant program. That initiative, guided by the nonprofit SF New Deal, successfully matched entrepreneurs with empty storefronts, offering free rent and a small amount of capital to activate otherwise dormant spaces.
SF New Deal will play a similar coordinating role for the Downtown Business Fund. Executive Director Simon Bertrang explained that the previous program proved that small businesses could succeed with modest support. The new, more robust fund is designed to take that concept to the next level.
With the fund, we’ll be able to attract small businesses to really make a long term commitment downtown, rather than just popping up in a vacant storefront. What we have found is that small businesses really have the flexibility, and they are risk takers, and we’re able to tap into that entrepreneurial spirit to really drive a new version of what downtown could be.
Since its formation last year, the DDC has become a powerful engine for downtown revitalisation, raising over $60 million from a roster of tech and business giants including OpenAI, Amazon, Anthropic, Ripple, and Salesforce. These funds have already been deployed for street cleaning, public art installations, and safety ambassador programs, all aimed at improving the downtown experience for locals and tourists alike. Similar municipal funding strategies are being debated in other regions, as seen in the recent decision where the Hamilton Council confirms a lower rates rise.
By providing substantial, long-term financial and logistical support, the Downtown Business Fund hopes to transform the area from a landscape of pop-ups to a thriving ecosystem of permanent, unique businesses that will define the next chapter of downtown San Francisco.
