HF2427

Purpose of the Bill

The purpose of this bill is to support small businesses in St. Paul, Minnesota, specifically those affected by construction and redesign projects along Arcade Street and East 7th Street. The bill aims to provide financial assistance to help these businesses maintain operations during the construction period.

Main Provisions

• Grant Program Establishment: The bill establishes a grant program to be managed by the commissioner of employment and economic development in consultation with the commissioner of transportation. These grants are intended for nonprofit organizations and community development financial institutions, which will then distribute financial aid to impacted businesses.

• Eligible Businesses: The grant is aimed at businesses that have 25 or fewer employees and are experiencing significant impacts, such as reduced road access, parking, or visibility due to construction.

• Criteria for Grant Awards: Grants will be prioritized based on factors like the rate of revenue decline, duration and proximity of construction, traffic disruption severity, and pedestrian/bicycle access.

• Use of Grant Money: Funds can be used for employee payroll, operating expenses, and facilities expenses. However, they cannot be used for bonuses, new equipment, furniture, or capital improvements.

• Reporting Requirements: Annual reports are required to be submitted to legislative committees detailing the grants awarded, including specifics about the businesses receiving aid.

Significant Changes to Existing Law

The bill does not introduce significant changes to existing law but establishes a new grant program specifically targeting businesses affected by a specific construction project. It provides clarity on fund allocation, usage, and establishment of partnerships with community organizations for effective distribution.

Appropriation

The bill allocates $2,200,000 from the general fund for the fiscal year 2026 to support this grant program. This is a one-time appropriation, available until June 30, 2029, with a small percentage allowed for administrative costs.

Relevant Terms

• Construction mitigation grants
• Small businesses
• Economic development
• Transportation impact
• Fund allocation
• Nonprofit organizations
• Community development financial institutions