Rio Nuevo District gets economic boost from new small business grant program

TUCSON, Ariz. (KGUN) — Entrepreneurs in Tucson’s Rio Nuevo District are getting a boost thanks to a new grant initiative aimed at revitalizing local small businesses.

Rio Nuevo, a tax increment finance district focused on revitalizing downtown Tucson, and Groundswell Capital, a local nonprofit that provides capital and resources to underrepresented entrepreneurs, teamed up to award 33 grants—ranging from $1,500 to $25,000—through the Rio Nuevo Impact Grants pilot program.

The program delivered $250,000 in direct funding to small business owners. Rio Nuevo funds are generated from a portion of state sales tax from businesses in the Tax Increment Finance District.

The program launched in January and wrapped its first round of funding in May, with nearly 300 applicants vying for support. The selected recipients span a range of industries—from food trucks and family-run retailers to artists, tech innovators, and service providers—highlighting the cultural richness and entrepreneurial spirit of Tucson.

One of those businesses is White File Salon, located in Midtown. Owner Nguyen Le said the $18,500 grant came just in time for his salon.

“I think it’s inspiring that there is help,” Le said.

The salon currently operates with a three-person nail staff, including Le. Le said the grant allows him to fully focus on expanding — something that’s been difficult over the past few years.

Two years ago, a car crashed into the business, costing him both revenue and regular customers.

RELATED STORY | Tucson salon temporarily closes after a car crashes into their entrance

“At the end of that, we were kind of just kind of afloat, kinda trying to get it back together,” Le said.

That incident followed a series of major disruptions. The salon opened just as the COVID-19 pandemic hit.

“When you’re starting a business you want to take off and then we were just shut down,” Le said.

Then came the Broadway construction project.

“It closed off a lot of the roads, so that was a bit of a setback,” he said.

Now, with the grant money, Le plans to upgrade furniture and hire additional staff.

“To kind of see out the final vision of it to get it where it needs to be,” he said.

He said the grant does more than offer financial support — it sends a message.

“It makes us feel like we’re not alone in the process of being an entrepreneur and creating a business,” Le said.

To ensure accessibility, Groundswell Capital says the grant program included biweekly information sessions and office hours in both Spanish and English, postcard mailers to every registered business in the district, and hand-delivered flyers.
Then, applications were reviewed by a diverse community committee.

Le mentioned he rarely sees grant programs specifically for small businesses. “I spoke from the heart about the business, and I was so happy I got the grant, and it comes to show that the community cares about small businesses,” Le added.

Groundswell Capital says it hopes to build on the success of this pilot and turn the program into a permanent, sustainable effort to support local entrepreneurs in the Rio Nuevo district.