Sponsor: Community & Economic Development
Title
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U.S. Small Business Administration Funds for the Small Business Reimagination Center
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Recommendation
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1. Ratify the submittal of the grant application to the U.S. Small Business Administration in the amount of $1,500,000 for the Small Business Reimagination Center.
2. Accept $1,500,000 grant from the U.S. Small Business Administration to invest in the Ramsey County small business ecosystem by creating the Small Business Reimagination Center.
3. Authorize the County Manager to enter into agreements and execute amendments to agreements in accordance with the county’s procurement policies and procedures, provided the amounts are within the limits of the grant funding.
4. Authorize the County Manager to enter into expenditure grant agreements and execute amendments to agreement in a form approved by Finance and the County Attorney’s Office provided the amounts of funding are within the limits of the approved expenditure grant agreement program budget.
5. Approve an increase in the personal complement of the Community & Economic Development department by 1.0 Full Time Equivalent.
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Background and Rationale
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The Ramsey County Economic Competitiveness and Inclusion Plan (ECI Plan) has identified a set of strategies to foster economic competitiveness, innovation, and transformation. These strategies include: Develop pathways to entrepreneurship and businesses owned by people who are racially ethnically diverse, and strengthen business retention and expansion infrastructure to support communities.
The Community and Economic Development department partnered with the Business Resource Collective (BRC) in deploying $15 million in grants through the Small Business Relief Fund in response to the Covid-19 pandemic. The partnership with the BRC was instrumental in getting those relief dollars equitably distributed and into the hands of underrepresented small business owners. The SBRC will prioritize relationships with community-based organizations and utilize existing community assets.
As a result of the ECI Plan and the Small Business Relief Fund, in June 2023, Community & Economic Development applied for a $1,500,000 grant from the Small Business Administration to create a Small Business Reimagination Center (SBRC) that implements these strategies. The SBRC will focus on entrepreneurship and business growth.
The virtual SBRC will strengthen small business and the small business ecosystem that served as a critical lifeline over the course of the pandemic. The SBRC will accelerate business growth particularly for racially and ethnically diverse businesses, develop entrepreneurship pathways, and strengthen the capacity for more culturally specific business advisory services and counseling. It will also support business planning and site selection, navigate business lending to grow local investment particularly for racially and ethnically diverse business owners, and develop incubation spaces for small business ideation and innovation.
Because of this funding, the Community and Economic Development department will be adding 1.0 Full Time Equivalent Economic Development Specialist position dedicated to business programming.
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County Goals (Check those advanced by Action)
☒ Well-being ☒ Prosperity ☒ Opportunity ☐ Accountability
Racial Equity Impact
These funds will be used to implement eligible strategies from the Economic Competitiveness and Inclusion Plan by investing in a program specifically designed to address a funding gap in minority owned enterprises. The funds will strengthen the small business ecosystem by accelerating business growth for racially and ethnically diverse businesses and strengthen the capacity for more culturally specific business advising. The addition of 500 more minority business enterprises would result in a rate consistent with the overall U.S. ownership rate and create 6,690 new jobs in Ramsey County.
Community Participation Level and Impact
Community and Economic Development implemented a robust community engagement process in the creation of the Economic Competitiveness and Inclusion Plan including engagement with residents, businesses, community organizations, other governmental agencies, elected officials, and local municipalities. The application for these funds was enabled by the support of the Business Resource Collective, the Saint Paul Chamber of Commerce, and the Center for Economic Inclusion. Conversations with these partners are ongoing as the program is developed.
☒ Inform ☒ Consult ☒ Involve ☐ Collaborate ☐ Empower
Fiscal Impact
The $1,500,000 grant awarded by the U.S. Small Business Administration will pay for costs associated with this program and placed in a project account, as requested in this request for board action. A total local match of $500,000 will support the work of this grant. The local match will come from CED’s general operating budget in 2024 and 2025. The department will use general levy funds to support the new, business-oriented FTE.
Last Previous Action
On January 23, 2024, the Ramsey County Board of Commissioners held a workshop on the Small Business Reimagination Center.
Attachments
None.