Purpose of the Bill

This bill aims to provide financial assistance to small businesses impacted by construction projects along Arcade Street and East 7th Street in St. Paul, Minnesota. The goal is to help these businesses cope with disruptions caused by construction activities and preserve their operations during the project duration.

Main Provisions

• Establishment of Grants: The bill instructs the Commissioner of Employment and Economic Development, in collaboration with the Commissioner of Transportation, to offer grants to nonprofit and community development financial institutions in St. Paul. These organizations will, in turn, distribute financial aid to eligible businesses adversely affected by construction on the specified streets.
• Criteria for Businesses: To qualify for financial assistance, a business must employ no more than 25 full-time or part-time workers and experience significant disruptions, such as impaired access, parking, or visibility for at least one month due to the construction project.
• Criteria for Grant Awards: The grant distribution will prioritize businesses based on specific factors like revenue decline, length and proximity of construction, and traffic disruption. Funds can be used for operational costs such as employee payroll and facilities expenses but not for bonuses or capital improvements.

Significant Changes

• This bill introduces a new grant system specifically targeting small businesses affected by municipal construction projects. It does not amend existing laws but sets up a framework for financial support during infrastructure improvement projects.

Reporting Requirement

The Commissioner of Employment and Economic Development must compile an annual report, starting January 15, 2027, detailing the grants distributed in the previous year, including business names and grant amounts. This report will assist in evaluating the impact and transparency of the funding process.

Appropriation

The bill allocates $2,200,000 from the general fund for fiscal year 2026 to finance these grants. This is a one-time appropriation, active until June 30, 2029, with a provision allowing up to 2% of the funds to be used for administrative purposes.

Relevant Terms

• Financial assistance
• Small businesses
• Construction mitigation
• Nonprofit corporations
• Community development financial institutions
• Economic development
• Road access
• Traffic disruption
• Employee payroll
• Operating expenses