Main Street Monday — States Double Down on Downtown Revitalization to Spark Small Business Growth

May 19, 2025

Bob Coleman
Founder & Publisher

$25 Million for Main Street Matters Graphics - PA Downtown

Main Street Monday — States Double Down on Downtown Revitalization to Spark Small Business Growth

Two major state-level initiatives are shining a spotlight on Main Street as the heartbeat of local economic recovery.

New York Invests in Central Downtowns

Governor Kathy Hochul recently announced 20 transformational projects in Central New York through the state’s Downtown Revitalization Initiative (DRI) and NY Forward programs. These efforts are designed to breathe new life into historic commercial corridors, improve walkability, and support small business expansion in communities like Auburn, Cortland, and Oneida. For example, in Brewerton, a $400,000 investment will renovate the local library to include a café and public meeting space, while $1 million is allocated to construct new apartment buildings near Oneida Lake.

In New York City, the Bronx neighborhood of Greater Morris Park has been awarded a combined $20 million from the DRI and NY Forward programs. This funding aims to transform the area into a premier transit-oriented development hub, leveraging expanded Metro-North commuter rail service and rezoning to allow additional commercial and residential growth.

Pennsylvania Launches 81 Main Street Projects

Meanwhile, Governor Josh Shapiro unveiled 81 new investments under Pennsylvania’s Main Street Matters program. This initiative is distributing $20 million in targeted funding to help localities upgrade storefronts, enhance pedestrian safety, improve public spaces, and provide technical assistance to entrepreneurs.

“By revitalizing our main streets, we’re not just investing in infrastructure—we’re investing in the people and small businesses that make our communities thrive,” said Governor Shapiro.

What Is Main Street Matters?

Main Street Matters is a $20 million initiative launched by the Shapiro Administration to revitalize Pennsylvania’s downtown areas, support small businesses, and improve community infrastructure. The program builds upon the success of the Keystone Communities Program and is administered by the Pennsylvania Department of Community and Economic Development (DCED). It aims to create healthy, vibrant, and welcoming communities by providing funding for planning, business support, aesthetic improvements, and increased safety and security.

Examples of Funded Projects:

  1. Lancaster County: Over $1.2 million invested in projects including a $100,000 façade improvement grant for the Place Marie Mall, transforming vacant upper floors into short-term rentals and office space.
  2. Pittston: A $3 million investment supporting several revitalization projects such as the Kevin Powers Accessible Playground, the Slope Amphitheater, the Art Loop Trail, and mixed-use developments like the Market & Main/New American Theater project and the Waterfront Warehouse retail and residential space.
  3. Reading: A $500,000 grant awarded to refurbish the historic Trexler Mansion, which will be used for Alvernia University’s CollegeTowne initiative, creating new meeting space for downtown job fairs and literacy outreach programs.
  4. Bedford County: Over $80,000 allocated for community improvement projects, including $50,000 to Downtown Bedford, Inc. for a street audio/emergency notification system, and $25,000 to the Bedford County Development Association for a Workforce Housing Impact Study.
  5. Honesdale: A $100,000 Keystone Partnership grant awarded to continue work on storefront improvements and fund loans for local business owners for new equipment, renovation projects, and business marketing.

What This Means for Lenders

For SBA and Main Street lenders, these state programs offer real opportunities. Revitalized commercial corridors typically translate into higher property values, increased loan demand, and stronger borrower performance.