NewBo City Market receives $1.3 million federal award

CEDAR RAPIDS — NewBo City Market has received a large federal grant to help it expand.

Republican U.S. Sen. Chuck Grassley announced Tuesday the $1.3 million award from the U.S. Economic Development Administration. The grant, part of a $5.5 million fundraising goal, will help bolster the small business incubator as it moves into its next phase of expansion in 2025.

The $1.3 million grant, which will be administered by the U.S. Department of Commerce, is the single largest source of funding among the $3.5 million raised so far, according to Executive Director Julie Parisi.

“I think this grant funding from the federal (Economic Development Administration) is really indicative of the kind of growth the market contributes to the local economy. It’s giving that (validation) that the work we’re doing to support startups in the community is significant,” Parisi said.

Parisi also appreciated the federal source of the award, which will help reduce the stress of fundraising locally.

The grant will support NewBo City Market’s multimillion dollar expansion project, expected to be let to contractors within the next week. The expansion, which will include a neighborhood grocery store, new business spaces, an indoor stage on the mezzanine level and expanded business hours, is expected to create 40 jobs among small businesses inside.

The expansion is expected to open by June or July 2025.

“Cedar Rapids leaders, along with Iowans who’ve attended my own town meetings, have shared with me the challenges small businesses are up against, including aging infrastructure and a dwindling workforce,” Grassley said in a statement. “This award will allow local entrepreneurs to continue to pursue their dreams and share their talents with the Cedar Rapids community.”

Comments: Features reporter Elijah Decious can be reached at (319) 398-8340 or elijah.decious@thegazette.com.