PHOENIX — Tempe-based micro-manufacturing companies may qualify for grants as part of a new city fund to grow local business.

The manufacturers may qualify for up to $25,000 of grant funds. The $800,000 total available was put together by the federal Congressional Community Project Funding ($500,000) and the city of Tempe budget ($300,000), the city said in a release.

Micro-manufacturing is when a company makes a limited quantity of one product, leading to smaller manufacturing facilities.

The purpose of the grant is to lift local businesses with an emphasis on minority entrepreneurs and help them tackle their biggest obstacles. Currently, only 11% of small businesses are minority-owned.

“Investing in small businesses is one way to grow our economy. A grant of $25,000 can be all that is needed to see someone’s dream come to life and bring prosperity to them, their family and our whole community,” Tempe Mayor Corey Woods said in the release.

Grants may be used to cover the cost of space, materials and equipment needed for micro-manufacturing.

The grant recipients will be chosen by five nonprofit organizations: FABRIC TempeHustle PHXPacific Southwest Minority Supplier Development CouncilRAIL CDC and Tempe Chamber of Commerce.

“I’m proud that in partnership with Mayor Woods and the city of Tempe, we’ve brought back half a million dollars in federal funds to Tempe to support micro-manufacturers,” Rep. Greg Stanton said in the press release.