Commerce Department

The Department of Commerce is the City of Philadelphia's economic development agency. Its motto is "making Philadelphia a business-friendly city where companies choose to start, stay, and grow."^[1] The department attracts companies to the region, supports small-business access to funding, revitalizes commercial districts, builds workforce talent pipelines and expands economic opportunities for underserved entrepreneurs. Its Director is appointed by the Mayor. Alba Martinez, a former Vanguard executive and the first Latina and LGBTQ+ person to lead the department, left effective May 1, 2025 to produce a musical, and Mayor Cherelle Parker named Karen Fegely, a Commerce employee for almost 18 years who had been deputy director for policy and strategic initiatives, as Acting Director.^[2][3] News coverage in May 2026 noted that a permanent director had not yet been named.^[3]

1 Services for businesses

Commerce staff manage business services by geographic area, provide financial support and lending programs, offer location-based incentives, support key industries and promote international business development.^[1] The Martinez tenure oversaw the Small Business Catalyst Fund, the Philly Biz Hub, an expansion of "PHL Taking Care of Business" cleaning corridors and a new Business Navigator team to help entrepreneurs through permitting and licensing, according to the City's announcement of her departure.^[2] The department released an inaugural annual report for 2025 in May 2026.^[4] Navigators coordinate with the Department of Licenses and Inspections and the Revenue Department through the PHL Open for Business effort.

2 Programs

Programs listed by the City include the Catalyst Fund, Storefront Improvement Program, Business Security Camera Program, Quality Jobs Program and PHL PRIME, which supports high-impact economic development projects.^[1] Commerce also works closely with the quasi-public Philadelphia Industrial Development Corporation (PIDC), which provides loans and land, and with the Convention Center, which the City subsidizes ($15 million in the FY27 appropriation). The Tax Abatement and Development Incentives article describes the tax side of these policies, and the wage and business tax cuts that are a core part of the Parker administration's competitiveness strategy are described in Philadelphia Taxes.

3 Office of Economic Opportunity and equity

The Office of Economic Opportunity is listed on the City's website as part of the Office of Business Impact and Economic Advancement, which works alongside Commerce, and registers minority-, woman- and disabled-owned businesses, monitors their participation in City contracts and supports capacity building. The City's goal is 35 percent participation each year.^[5] Procurement itself is handled by the Procurement Department, while Commerce and OEO focus on opening doors for businesses; see Understanding City Contracts and Bids. Related initiatives on workforce are in the Office of Workforce Development.

4 Budget and partners

Council's FY27 appropriation to the Director of Commerce was about $16.8 million, with $15 million for the Convention Center subsidy and about $80 million under an "Economic Stimulus" line.^[6] The department partners with business groups such as the Chamber of Commerce for Greater Philadelphia and business improvement districts (see Center City District and Business Improvement Districts) and with community development corporations on commercial corridors. The Department of Planning and Development handles land use and housing development.

5 Criticism and debates

Economic development policy is contested. Supporters of tax cuts and incentives, including the Parker administration, argue they keep the city competitive; whether benefits reach small businesses and neighborhoods as much as large projects is a recurring question in Council debates (see Developers and the Real Estate Lobby). Leadership has been in acting status for over a year, which news reports noted. Small-business owners can start with the Commerce phone or email above and the Business Navigator service; for complaints see How to Get Help From the City.

See also: Office of Economic Opportunity, Philadelphia Industrial Development Corporation, Mayor's Cabinet and Offices, Philadelphia International Airport.

References

1. City of Philadelphia, "Department of Commerce" department page (phila.gov).
2. City of Philadelphia, "Mayor Parker announces departure of Director of Commerce Alba Martinez as of May 1," March 27, 2025 (phila.gov).
3. City of Philadelphia, "Mayor Parker appoints Karen Fegely as Acting Commerce Director," May 2, 2025 (phila.gov); Philadelphia Inquirer, May 1, 2026.
4. City of Philadelphia Department of Commerce, Inaugural Report 2025, May 2026 (phila.gov).
5. City of Philadelphia, "Office of Economic Opportunity" and M/W/DSBE registration pages (phila.gov).
6. City of Philadelphia, Fiscal Year 2027 Appropriation Ordinance, items 2.48 to 2.50 (phila.gov).