This bill (S.F. No. 2520) proposes allocating funds for construction mitigation grants to support businesses affected by street construction in St. Paul, Minnesota.

Key Provisions:

1. Grant Establishment:

   • The Minnesota Department of Employment and Economic Development (DEED), in collaboration with the Department of Transportation (MnDOT), will provide grants to nonprofit organizations and community development financial institutions.
     
   • These organizations will then distribute financial assistance to small businesses impacted by the Arcade Street and East 7th Street construction projects.

2. Eligibility:

   • Qualifying businesses must have 25 or fewer full-time or part-time employees.
     
   • Businesses must experience "substantial business impacts," which include impaired road access, parking issues, or visibility limitations for at least one month.

3. Award Criteria:

   • Grants will be prioritized based on factors such as:
     
     • Revenue decline, duration of construction, proximity to construction, severity of traffic disruption, and accessibility issues for pedestrians and cyclists.
       
   • The grant funds may be used for employee payroll, operating expenses, or facility expenses but cannot be used for bonuses, new equipment, furniture, capital improvements, or business expansion.

4. Annual Reporting:

   • Starting January 15, 2027, and annually until project completion, DEED must submit reports to Minnesota legislative committees detailing grant allocations, including the names, addresses, types of businesses, and funding amounts received.

5. Funding & Administration:

   • $2.2 million is appropriated from the general fund for fiscal year 2026 to fund the grants.
     
   • The DEED commissioner may retain up to 2% (or $44,000) of the allocated funds for administrative expenses.
     
   • The funds remain available until June 30, 2029.

This bill is designed to provide financial relief to small businesses struggling due to prolonged road construction disruptions.