Several Washington businesses will benefit from a $200,000 grant recently awarded to the city.

The funding comes from the Division of Community Investment and Assistance’s Small Business and Entrepreneurial Assistance program. The primary purpose of the SBEA program is to provide funding to local governments to help jumpstart the growth of existing small businesses by expanding their businesses and creating new jobs. The local businesses participating in the program are Park Boat Company, Hospital Pharmacy, East Carolina Imports, FRE Plumbing and Pamlico Fencing.

The original grant terms were changed earlier this year.

Under the modified grant agreement’s terms, Tayloe Drug Co. (Hospital Pharmacy) would contribute $97,125 instead of the original $111,000 toward job training, with the goal of creating two new jobs. Eastern Carolina Import Services would contribute $7,875 instead of $9,000 toward the purchase of car lifts and equipment rehabilitation, with the goal of creating one new job. Pamlico Fence would contribute $21,875 instead of $25,000 toward buying a skid steer machine, with the goal of creating one new job.

FRE Plumbing would contribute $1,750 instead of $2,000 toward buying equipment, with the goal of creating one new job. Park Boat Co. would contribute $21,875 instead of $25,000 toward buying a truck and tractor, with the goal of retaining one existing job and creating two new jobs.

Their contributions total $150,500. Combined, the companies plan to retain one job and create seven new jobs, according to grant documents.

“The grant project is authorized to provide CDBG funds to these local businesses for construction/rehab, machinery and equipment, and working capital. By providing capital resources to the existing business the City of Washington will help increase employment opportunities by creating 8 new jobs,” wrote John Rodman, the city’s chief planner, in a memorandum to the mayor and council. “Funding eligibility is contingent upon the creation or retention of permanent fulltime jobs. Each new job created or retained is eligible to receive up to $25,000 in grant funds. The City of Washington was therefore awarded $200,000 in Small Business and Entrepreneurial Assistance funds. Before these funds can be released the conditions must be met.”

The city has protection in place to prevent it from facing a “clawback” should the businesses fail to meet certain conditions.

During its Oct. 7 meeting, the council approved promissory notes and legally binding agreements between the city and five businesses. The promissory notes and agreements keep the city from any financial liabilities related to the project if any or all of the businesses default in regard to the grant agreement.

The businesses have until Jan. 16, 2015, to fulfill their job-creation requirements. They must retain the job(s) for six months at 35 hours per job per week.

The grant and businesses’ contributions total $350,500.