The San Antonio City Council agreed Wednesday that it wants to give another $1.4 million to small businesses that have lost money from disruptive construction projects.
But they couldn’t agree on the finer points of the program, sending it back to the drawing board for tweaks that could more narrowly focus which businesses might be eligible.
With grant amounts likely ranging from $10,000 to $35,000, the money will help only a fraction of those businesses hurt by the city’s myriad and ongoing construction projects.
So some council members were keen to make sure businesses that have, say, wealthy owners or access to other forms of capital assistance, were not prioritized by the program’s scoring criteria.
Several suggested adding a personal wealth limit, while others suggested targeting “microbusinesses” rather than simply small businesses as defined by the U.S. Small Business Administration, whose definition includes those with 500 employees or fewer.
This would be the third time the city has given cash to businesses affected by drawn-out construction projects. The latest program was designed in part based on feedback from businesses that had received previous grants.
It also was more narrowly focused than past efforts, prioritizing corridors with the longest construction durations — such as Alamo Street and Broadway area projects, both of which have been under construction since 2020 — and companies that had sustained the highest percentage of net revenue losses.
The scoring criteria also included “equity atlas” points for businesses in historically disadvantaged areas, pitting the two council members who jointly requested the program against one another.
Marc Whyte (D10) came out of the gate opposing the inclusion of those points, while Jalen McKee-Rodriguez (D2) pointed out that the goal of the federal pandemic relief money that will be used to pay for the grants “was to address those communities that were disproportionately impacted” — something he believes has not happened in previous grant funding rounds.
For example, of the 91 businesses that received roughly $2.45 million in construction mitigation grants in fiscal year 2023, just two were in District 2, McKee-Rodriguez pointed out.
“It is distressing to be able to say that I am in one of the 11 most powerful seats in the city and my constituency is still struggling and they’re not receiving relief,” he said.
It’s unclear which changes suggested by council members would be incorporated into a new proposed program, said Ana Bradshaw, assistant director of the city’s Economic Development Department, as some suggestions may end up not being feasible.
The original goal, had council agreed to the proposed program on Wednesday, was to open applications to affected businesses by May 1, and distribute grants by August. It’s unclear whether that timeline will shift.
With the era of spending federal pandemic relief money coming to a close, council will discuss funding for a permanent construction mitigation fund during its budget goal-setting process later this year.
In fiscal year 2022, council allocated $17 million of those federal dollars to its program to assist business impacted by COVID-related closures. As part of that program, small businesses in 19 construction zones across the city were eligible for a $10,000 construction impact supplement.
Just over $15.6 million was awarded to 524 businesses, according to the city, with 135 of those receiving the supplemental funding. The average grant size was just under $30,000. The average grant size for last year’s program averaged almost $27,000, according to city documents.
The city also spent $400,000 in 2023 on related construction mitigation programs. That included the development and distribution of a “construction toolkit” for businesses as well as a program that helps businesses create custom signs to let customers know they’re still open for business.
This year’s budget includes another $500,000 to continue and expand those services, including a larger dedicated team of business outreach specialists who are tasked with working one-on-one with local businesses to get the support they need.
