New Grant Program in San Antonio for Small Businesses Facing Construction Challenges
The city of San Antonio has allocated a new $1.4 million funding initiative aimed at supporting small businesses adversely impacted by ongoing construction and the aftereffects of the pandemic. Following nearly $60 million in economic aid distributed in recent years, this new program seeks to continue that momentum.
Addressing Ongoing Challenges
City officials, including Mayor Ron Nirenberg, emphasize the need for more significant measures to assist locally-owned businesses. “That amount is meager in terms of the number of businesses in need,” Nirenberg noted while stressing the importance of expediting construction timelines to further minimize disruptions for business owners.
Proposed Grant Programs
During a recent city council meeting, Brenda Hicks-Sorensen, director of the Economic Development Department, introduced a construction mitigation strategy comprising three distinct grants designed to address various business needs:
- Stabilization Construction Grant: This program, funded with $1 million, will provide support for small businesses along specific construction corridors. Eligible businesses will be able to receive grants up to $35,000 based on documented revenue losses.
- Mitigation Construction Grant: With a budget of $80,000, this program aims to assist businesses in marketing their services during construction. Grants up to $2,000 will be available for up to 40 businesses preparing for the upcoming Marbach Road Area Streets and Drainage Project.
- Accelerate Recovery Grant: Set at $120,000, this initiative is intended for businesses affected by roadwork, providing up to $5,000 in funding for aesthetic and operational improvements.
The applications for the Stabilization and Accelerate Recovery Grants are scheduled to open on May 1, with disbursement planned through August, while the Mitigation Grant application period will start on June 2.
Performance of Previous Grant Programs
According to analyses by the Economic Development Department, past grant programs significantly improved the survival rate of businesses in impacted areas. Data indicates that recipients exhibited a 13% higher survivability rate compared to those who did not receive funds. In the accommodation and food service sectors, businesses that obtained grants had a 25.5% enhanced survival rate.
Concerns from Council Members
District 1’s Councilwoman Sukh Kaur highlighted the emotional toll ongoing construction has taken on local business owners, some of whom have expressed despair during official meetings. Kaur also pointed out that communication between the city and businesses needs significant improvement prior to project initiation.
Council members, including Phyllis Viagran and Jalen McKee-Rodriguez, voiced concerns regarding the limited eligibility of certain districts for the new programs, questioning why many areas were left out, particularly in the South Side of the city.
City Strategies for Improvement
Mayor Nirenberg and City Manager Erik Walsh noted various strategies, including temporary street improvements and enhanced marketing efforts to support affected businesses, especially with major events like the upcoming NCAA Men’s Final Four contributing to visitor influx.
Continued Support for Small Businesses
In recent years, San Antonio has grappled with the dual crises of the pandemic and construction-induced disruptions. The city has taken proactive steps, previously distributing significant amounts in aid, such as:
- $29.5 million to micro-businesses with fewer than 20 employees in 2020
- $13 million in hospitality grants in early 2021
- $15 million in COVID-19 impact grants in 2022
- Previous construction mitigation grants totaling $2.45 million
In a bid to sustain this support, the city plans to collaborate with LiftFund, a nonprofit microlender, to administer the new programs, ensuring that local businesses continue to receive the necessary assistance to thrive amidst ongoing challenges.
