Philadelphia is a city of builders, dreamers, and doers. Its heartbeat comes from the small businesses along neighborhood commercial corridors across the city.

The Philadelphia Small Business Catalyst Fund is a valuable resource to fuel the growth of local businesses and entrepreneurs.

By offering grants of up to $50,000 and advisory services, the Catalyst Fund supports businesses that show need, growth potential, and economic impact. The goal is to help them grow their operations. This includes boosting production or service capacity and meeting market demand.

This comprehensive support ensures they have the tools to achieve long-term stability.

In Fiscal Year 2026, the Catalyst Fund invested $10.7 million into 304 businesses. This shows that when Philadelphia backs its entrepreneurs, the whole city benefits.

The Philadelphia Small Business Catalyst Fund is a program by the Department of Commerce. It promotes collaboration and helps businesses grow throughout the city.

Business testimonial  

The Department of Commerce is highlighting Catalyst Fund recipients across Philadelphia to show the program’s impact. One of the featured businesses is Dave’s Automotive Center, which has been a Tacony neighborhood staple since 1985. Here’s their story.

While Richard Sanchez has degrees in business administration, business management, and hospitality, which come in handy as a business owner, he is a self-taught mechanic who grew up fixing cars with his father and is now keeping the legacy alive by working with his own son.

“I remember since I was a little kid, my dad will bring the car into the garage and take it all apart and pull the engine out,” said Sanchez. “I was always there with him watching what he did and learning from him.”

This led to him turning his hobby into a career.

The pandemic back during its previous shutdown gave him time to think. He wondered how to combine his business skills with his love for cars, so, he began looking into buying an auto repair shop. In 2019, he bought Dave’s Automotive Center, a business that has been in the Tacony neighborhood since 1985.

“Everybody knows Dave’s Auto on the corner, so it was very important to me to retain the clientele and to retain the legacy of the business that’s been here for so many years,” said Sanchez. He simply revamped Dave’s Automotive Center website, upgraded the storefront, and kept some of the mechanics.

He has built a collaborative network with local businesses by exchanging referrals with neighboring mechanics who view him as a trusted colleague. “They do work for me; I do work for them. “I’m the only one in the area that has an alignment rack, so they bring cars to me on a daily basis to do alignments. In return, I send a lot of business back to them, so it’s a good working relationship,” said Sanchez.

Regarding community support, the relationship is a reciprocal cycle for Dave’s Automotive Center and its Northeast Philadelphia customers: “What is wonderful about this area is that I’m surrounded by a nice neighborhood. It’s a good mix of people,” said Sanchez. I have families that have been coming here – grandmother, father, children, grandchildren – for many years. They play a big impact and a big role in our businesses because we cater to the local neighborhood.”

That sense of trust with local mechanics and the broader community has sustained and expanded the business over the past seven years. Today, his team includes three full-time auto mechanics, a customer service representative, and family members, including his wife and his son, who work alongside him in the business.

How Catalyst Fund supported the business

The business relied on old equipment and software for years. This outdated technology needed replacing as it was essential for managing the auto repair shop and customer service effectively. He heard about the Catalyst Fund last year from Amarynth Ruch, a business corridor manager for Tacony Together (formerly known as Tacony Community Development Corporation). “That’s the reason why I applied,” Sanchez said. “[Amarynth] was the one that kind of brought it to my attention, so it was a big help.”

Ruch knew about the funding opportunity through the Department of Commerce and decided to share it with businesses along the corridor.

“I talked to him about it, and I’m really excited that he got it,” said Ruch. “He deserves it; he did a really good job with it, too.”

Once Sanchez received the Catalyst Fund, he upgraded his storefront, shop equipment, and more. “We upgraded the storefront, new signs, new lighting, refresh the lobby, the waiting area, so make it more comfortable for customers and for our neighborhood,” said Sanchez.  “The rest of the money was utilized to buy equipment that we needed to do better work to retain more business to increase the revenue.”

He noted that securing the Catalyst Fund required time and patience but emphasized that the outcome makes it well worth the effort. He urges future applicants to get their documents ready early. This will help make the application process smoother.

“If you have everything in line as a business should be, it’s a pretty straightforward process, and I will definitely recommend small businesses to do it because it was a big help for us,” said Sanchez.

Apply for the Catalyst Fund

To get started, view the grant FAQs for eligibility requirements. Then, apply for the Catalyst Fund today. If you need assistance with applying, the Mayor’s Business Action Team (MBAT) provides personalized assistance in multiple languages to entrepreneurs for all aspects of doing business in Philadelphia. Contact MBAT by emailing business@phila.gov or calling 215-683-2100.