Fewer than half of the more than 200 business owners who applied for a grant from the City of San Antonio were approved to receive money to cover losses they incurred due to ongoing road construction.
Small business loan maker LiftFund, which is processing the COVID-19/Construction Recovery Grants program on behalf of the city, said 91 of the 219 applicants were approved for grants averaging $28,000.
The program, which was established in January with $2.25 million in federal funds from the American Rescue Plan Act and later additional money, has closed.
So far, $2.4 million has been handed out and the city has produced a list of all recipients up to June 7. The grants range from the maximum of $35,000 to just under $4,500.
Several restaurants and bars along the St. Mary’s Strip, where owners have complained of prolonged construction, were awarded the maximum amount, including Hi-Tones, The Mix, Tycoon Flats, Demo’s and Curry Boys BBQ.
The list includes several grant recipients who operate storefronts in Market Square, where business owners experienced construction on San Saba and Commerce streets that limited foot traffic and hurt sales.
Roberto Delgado, the owner of Mexico Lindo Imports, was awarded just under $14,000 for what he said was a 30% reduction in revenue at the shop that he has operated for 13 years.
“Sometimes it’s difficult for tourists to notice the place” amid all the roadwork, he said.
Delgado plans to use the funds to help retain employees in the shop that sells imported clothing, jewelry, pottery and handmade crafts.
LiftFund held meetings at Market Square to offer business owners there help with completing grant applications, said Ana Bradshaw, assistant director for economic development.
Application assistance days also were hosted by LiftFund at Launch SA, and groups like Centro San Antonio, Prosper West and San Antonians for Growth on the Eastside also provided technical assistance, she said.
LiftFund denied 69 requests for construction recovery grants, or about a third of all applications.
City officials said nearly all of the denials were due to an applicant not showing proof of the $10,000 net revenue reduction from 2021 to 2022, as required by the program.
A few others were denied because they didn’t meet other program parameters like the minimum revenue requirement or the business establishment date, according to a statement from the city’s economic development department.
“We were looking at trying to capture those businesses that were coming out of the pandemic and then were impacted by the construction as well,” Bradshaw said. “We were also a little bit constrained because of the fact that we were using ARPA dollars. So we needed to demonstrate a connection to the pandemic.”
Some unsuccessful applicants were not located within the 19 designated construction zones eligible for the program and others did not provide the required documents. One applicant withdrew.
LiftFund gave another 58 applicants whose requests remain “suspended due to documented inconsistencies” until June 23 to submit clarifying documents in order to be reconsidered for a grant. Following a second round of notifications, none did so, Bradshaw said.
“We consider the program closed at this point,” she said. About $900,000 remains in the fund but how it will be used hasn’t been determined yet. The city already has implemented a signage program to reimburse businesses that install signs directing customers around construction.
“The City of San Antonio understands the challenges to local businesses recovering from the COVID-19 pandemic and now faced with construction projects in their neighborhood,” stated City Manager Erik Walsh. “We heard feedback from the community, and moved quickly to get this program launched.”
In late May, the Center City Development & Operations Department announced it would hold regular meetings to give downtown business owners and others an update from the Public Works Department and the city’s contractors on road projects that might affect them. The first one was held June 2.
The next meeting is Aug. 4.
