SF5157

Purpose

• Create and fund a targeted program to support small, locally owned businesses along specific corridors in St. Paul (University Avenue and Selby Avenue).

Main Provisions

• Funding: In fiscal year 2026, $3,000,000 from Minnesota’s general fund is appropriated to the Department of Employment and Economic Development (DEED) to provide a grant to the Rondo Community Land Trust (RCLT).
• Program creation: Rondo Community Land Trust must establish and run a small business assistance program to stabilize, recover, and grow locally owned businesses along the University Avenue or Selby Avenue corridor.
• Use of grants: Grants may be used for:
  • rent or mortgage payments
  • utility expenses
  • payroll and employee retention
  • equipment purchases or repairs
  • inventory replacement or working capital
  • other operational expenses necessary for business stability and activity
• Priority for funding: Grants must prioritize businesses that are:
  • locally owned and operated
  • owned by entrepreneurs from historically underserved communities
  • experiencing financial hardship or disruptions (e.g., revenue loss) due to Operation Metro Surge or other corridor disruptions
• Ineligibility: The Capitol Area Architectural and Planning Board is not eligible to receive a grant under this section.
• Administrative costs: RCLT may use up to 10% of the appropriation for administrative costs related to implementing, outreach, and managing the program.
• Reporting: By February 1, 2027, RCLT must report to the chairs and ranking minority members of the legislative committees with jurisdiction over economic development. The report must include:
  • the number of businesses assisted
  • the amount and type of assistance provided
  • the geographic distribution of funds
  • a summary of outcomes related to business stabilization and corridor economic development
• Time limits: The appropriation is available through June 30, 2027.

Significant Changes / Impact

• Establishes a new targeted grant program administered by a nonprofit entity (Rondo Community Land Trust) rather than a state agency for a specific area and set of businesses.
• Introduces forgiveness loans as a possible form of assistance, expanding beyond simple grants.
• Creates explicit prioritization criteria to favor locally owned businesses and those from historically underserved communities affected by corridor disruptions.
• Sets a mandatory reporting requirement to inform legislators about program reach and outcomes.
• Allocates a defined administrative cap (10%) and creates a defined funding window (availability through 6/30/2027).

Relevant Terms - Rondo Community Land Trust - small business assistance program - grants and forgivable loans - University Avenue corridor - Selby Avenue corridor - St. Paul - Operation Metro Surge - board not eligible: Capitol Area Architectural and Planning Board - general fund - Department of Employment and Economic Development (DEED) - geographic distribution - administrative costs - reporting requirement - February 1, 2027 deadline - June 30, 2027 deadline