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Rio Nuevo Grant Program 2025 Report


Pictured: Arianna Luna, owner of La Bella Luna Boutique and founder of Chinaco Vibez Festival

“Small Business, Big Ideas”


Fueling Local Dreams, One Business at a Time


Overview

The Rio Nuevo Small Business, Big Ideas Grant Fund Program aims to support entrepreneurs and small businesses at all stages, including mobile ventures. We welcomed all ideas and needs. To maximize funding opportunities, we accepted applications continuously and allocated funds in three tranches. Additionally, we offered bilingual grant applications, staffed open hours for application assistance with bilingual employees, had 1:1 in person meetings with over 20 business owners, and conducted 10 bilingual virtual Zoom Q&A sessions with 17 business owners in attendance.


The 2025 Rio Nuevo Grant Program drew a significant response, receiving 324 applications from a wide array of Tucson's small businesses. Representing sectors such as wellness, retail, food, and media, these businesses aimed to expand and thrive within the Rio Nuevo Corridor.


A multifaceted outreach strategy contributed to the program's success. This included distributing bilingual flyers, mailing 500 targeted postcards, sending over 6,000 emails, and securing cross-promotion in the Downtown Tucson Partnership and Rio Nuevo Newsletters. These efforts were crucial in engaging directly with the community and achieving a strong turnout.


After a competitive review process, 33 businesses were selected to receive grants, disbursed in three funding tranches. Award amounts ranged from $1,500 to $25,000, helping business owners expand, hire, renovate, and reimagine what’s possible.


By the Numbers

  • Total Applicants: 324

  • Awardees: 33

  • Grant Range: $1,500 – $25,000

  • Total Funds Awarded: $250,000

  • Industries Represented: Food & Beverage, Beauty & Wellness, Retail, Arts, Fitness, Publishing, Media, and more


Spotlight: Top Grant Recipients

  • Scented Leaf Tea House – $25,000 A downtown staple, this tea house continues to grow as a cultural hub for connection and conversation.

  • Dolce Pastello Cakes – $20,000 Home of artisan desserts and specialty cakes—supporting women-led culinary dreams.

  • White File LLC – $18,500 A premium salon transforming the self-care experience with clean aesthetics and elevated style.


Meet the Awardees

We served a variety of businesses under this program: 30% food and beverage, 36% service-based, and 33% retail. A thriving business district depends on this kind of diversity. Food and beverage businesses draw consistent foot traffic and encourage longer visits; retail shops create opportunities for spontaneous spending and destination shopping; and service businesses provide essential, recurring support that anchors daily activity. Together, they form a balanced ecosystem that attracts a wider range of customers, sustains activity throughout the day and week, and supports long-term economic resilience. This mix is key to creating a vibrant, sustainable urban core.


Business Name

Owner

Type

Scented Leaf Tea House

Shane Barela

Food/Bev

Dolce Pastello Cakes

Ahidee Almazan

Food/Bev

White File LLC

Nguyen Le

Service

Danny’s Downtown Barber

Danny Gamez

Service

Urban Pita

Jeffery Baker

Food/Bev

Sora’s Head Spa

Yoko McCall

Service

Everything is Awesome

Rebecca Burnett

Retail

Berry Greens Juice Bar

Andres Marmion

Food/Bev

Mestizo Studio

Niko Garms

Service

Sumaj Bolivian Street Food

Angela Calderon

Food/Bev

Fit Cultr

Daniel Manana

Service

Apricot Lane Boutique

Edna Mendoza

Retail

Old Paint Records

Lana Spilsbury

Retail

Laughlin Mercantile

Alec Laughlin

Retail

Desierto Books

Cheron Taylor

Retail

Sunny Days Gifts

Cricket DeNunzio

Retail

Bella Curl Salon

Reyna Salazar

Service

1972 Barber and Shave Parlor

Gabriel Romero

Service

Take Flight Yoga

Emily Guindon

Service

Watch This Media Group

Rachel Castillo

Service

Minimal Mae

Eric Fletcher

Retail

StretchMed

Doug Klemann

Service

Hello Beautiful Lounge

Vanessa Parada

Service

La Raiz Mexican Kitchen

Luis Garcia

Food/Bev

Decibel Coffee

Dana Fehr Jr

Food/Bev

El Be Goods

Laura Bode

Retail

Desert Biscuit Company

Jacob Glinski

Food/Bev

CP’s Wings

Cornelius Poston

Food/Bev

La Bella Luna / Chicanos Vibez Festival

Arianna Luna

Retail

MAST Tucson

Mellow Dawn Lund

Retail

Why I Love Where I Live

Kristin Tovar

Retail

Café Sin Fronteras

Jose Rodriguez

Food/Bev

Andales / Lance Thorn

Lance Thorn

Service


Voices of Impact


Receiving this grant has been a significant blessing, not only for my business but also enabling me to undertake renovations and upgrades”.  

Danny Gamez / Danny’s Downtown Barber


"We are so grateful for the Rio Nuevo Impact Grant. It has allowed us to enhance our tea house and create a more inviting space for the community to enjoy. This grant has truly made a difference in our ability to grow and thrive." Shane / Scented Leaf Tea House


“The Rio Nuevo grant has been instrumental in the growth of our small business. It has allowed us to acquire essential tools and equipment, improve our client services, and renovate our salon to create a more welcoming atmosphere. These improvements have not only benefited our existing clientele but have also enabled us to attract new employees. Thanks to this incredible opportunity, the future of our salon is very promising”.

Nguyen Le / White File Nail Salon


“The grant funds were enough to cover a major piece of equipment that we needed to increase efficiency while silkscreening our house products. We took on an employee, (using our own capital) so Kevin and I could have a scheduled "production day." These two things combined have enabled us to increase production, and in turn, increase revenue.”

Lana / Old Paint Records 


Selection Process

The business selection process involved several key stages. First, applications were reviewed for completeness, ensuring application, the project description and grant budget were included, for advancement to the next stage. Next, verification of the business's active status with the Arizona Corporation Commission was conducted, for advancement to the next stage. Following this, confirmation that the business operates within the Rio Nuevo corridor was established using the Rio Nuevo map and the Arizona Department of Revenue tax rate lookup page, for advancement to the next stage.


Applications meeting all specified criteria were evaluated through rubric scoring.  The highest-scoring applications were then presented to the Grant Committee for the final selection decision. The rubric emphasized a combination of the impact and quality of the application and demonstrated need for support. 


The Committee consisted of a group of diverse community members:


  • Sharayah Jimenez, Rio Nuevo

  • Crystal Moore, Downtown Tucson Alliance

  • Sue Oliver, Pima Community College

  • Franky Villegas, City of Tucson

  • Magdalena Verdugo, YWCA

  • Ben Standifer, San Xavier Allottee Association


Local Impact

These businesses are not just names on a spreadsheet—they’re community anchors, culture carriers, and economic catalysts. Centered within Tucson, the Rio Nuevo Corridor's impact from this funding is evident. New employment opportunities, flourishing businesses, and a resurgence of local spirit are already materializing. This program is estimated to impact Tucson’s economy in the following ways: 


Total Estimated Economic Output Generated

  • $450,000 in additional local economic activity

  • ~12–13 FTE jobs Jobs Retained or Created

  • $825,000 of Projected Revenue Growth for Grantees


What We Learned & What’s Next?

We plan to modify future funding guidelines. Specifically, in response to feedback we will add additional clarity that grant amounts can range, based on the request and impact. We suggest establishing a minimum grant amount of $5,000 and a maximum of $25,000. Additionally, to ensure equitable distribution, we will allocate a fixed dollar amount per tranche.


As we look toward the future, Rio Nuevo remains committed to:

  • Increasing access to capital for underrepresented entrepreneurs

  • Fostering inclusive economic growth

  • Supporting placemaking and sustainable development in Tucson’s urban core


Digital Storytelling

Throughout the process, we created interactive digital media stories highlighting awardees, generating high engagement and digital awareness. This storytelling was an encouragement for small businesses, as one awardee shared The grant has actually generated a strong sense of community. Seeing other small businesses receive the grant has allowed us to not feel alone in this journey as an entrepreneur. Knowing that we are all in this together and having the support of the Rio Nuevo and Groundswell Capital is everything.”  We will continue to promote the “Faces of Rio Nuevo” campaign, highlighting awardee stories in film, photo, and events.

Awardee Map


Media Hits: 


Thank You

To every applicant, reviewer, and partner: thank you for believing in the power of small businesses to shape Tucson’s future. This is only the beginning.


About Groundswell Capital

Groundswell Capital is a mission-driven lending nonprofit dedicated to sustainable economic growth, focusing on clean energy, small business financing, and community development. By aligning financial returns with environmental and social responsibility, Groundswell Capital is helping to shape a resilient and equitable future for Arizona.


For media inquiries, contact:

Dre Thompson

President,

Groundswell Capital


 
 
 

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