San Antonio City Council was briefed Jan. 11 on a planned launch of a $2.25 million federally funded grant designed to provide some cash relief to eligible small businesses hit hard financially by major road construction in their neighborhood.

City staff said from mid-January to mid-February, they will reach out to small businesses located in 15 targeted corridors where road lengthy construction projects and closures have contributed to decreased revenue and customer traffic for those merchants.

Eligible businesses will have from Feb. 13-28 to apply for aid from the city’s new COVID-19/Construction Recovery Grant Program, with which the city is reallocating $2.25 million within their American Rescue Plan Act Small Business Implementation Plan.

City economic development director Brenda Hicks-Sorensen said approved grants will range between $10,000-$35,000 based on a merchant’s net revenue losses between 2021 and 2022. Interested business owners may receive updates and register at this link.

Grant disbursements will begin March 20 with support from local organization LiftFund, Hicks-Sorensen said. She added the cash grant can be issued for working capital; equipment; payroll; health care benefits; contract labor; supplier payments; rent, lease, mortgage or utility payments; and critical business operations.

“We know there’s a sense of urgency about this,” Hicks-Sorensen said.

Such direct financial aid will be available for ventures on corridors, including Bulverde Road between Butterleigh Drive and Quiet Meadow Street, Broadway Street between I-35 and East Houston Street, and North St. Mary’s Street between East Mistletoe Avenue and West Josephine Street.

In December 2022, city staff briefed the council’s Economic and Workforce Development Committee about the recent introduction of a separate but related pilot program in which a total of $400,000 is being offered for eligible small businesses in the same 15 corridors.

The city at the start of new year started implementing the Construction Mitigation Pilot Program, which, like the COVID-19/Construction Recovery Grant Program, seeks to extend some support to eligible ventures severely affected by city-initiated projects lasting longer than 12 months in those targeted areas.

City staff and several council members at the Jan. 11 council session agreed that owners/operators of such disrupted businesses as those in the North St. Mary’s entertainment district need plenty of aid to survive.

Hicks-Sorensen said businesses that applied for support in the construction mitigation program may also seek a construction recovery grant.

Mayor Ron Nirenberg said many local small businesses suffered a one-two punch in the last three years with pandemic-induced closures or restrictions, and then disruptions caused by major road construction.

“The most important thing we can do is get those projects done on time and do them well,” Nirenberg said, adding it is critical to provide as much financial aid as possible to those severely affected ventures.

District 2 Council Member Jalen McKee-Rodriguez said he is happy to see direct financial aid being offered to construction-affected ventures even though many business owners said the proposed grant amounts may not help them much in the long run.

However, McKee-Rodriguez said the city should be more proactive about communicating with residents and merchants in an area eyed for a major road project, and ensuring long-term construction mitigation that will help a wider number of affected small businesses.

“My end goal has always been a grant program, so I am glad to see it finally being proposed,” he added about the city’s new initiative.

District 1 Council Member Mario Bravo, who represents the targeted corridors, such as Broadway and North St Mary’s, said the recovery grant program could aid small area bars and restaurants that “fell through the cracks” when emergency COVID-19 relief became available early in the pandemic.

Bravo agreed with some council members who felt the recovery grant program is not providing enough money, but that this initiative is a beginning for a potential long-term strategy.

“We just want to make sure nobody goes out of business,” Bravo added.

Other council members said it is important for the city to be in constant communication with affected residents and business owners in a construction zone and to keep project contractors accountable when unexpected problems exacerbate and lengthen roadwork in a specific area.

Walsh said he understands affected business owners’ frustration with the city, adding that road projects, such as Broadway and North St. Mary’s Street, are happening in neighborhoods that have lacked major, vital infrastructure upgrades for years or even decades.

“From my perspective, we cannot communicate enough. We need to be in a position to over-communicate,” City Manager Erik Walsh said.

Razi Hosseini, city public works director and engineer, said the city can exact penalties, such as withholding payments for a certain timeframe, to incentivize contractors to do what they can to finish their road project in a quick, effective way.

District 9 Council Member John Courage said the city should also push to aid small business owners in an area adversely affected by major private development.

“How do we develop a better partnership and talk about cost of doing business with developers if they’re going to impact the businesses around them as they do a project going forward?” Courage said.