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Loan pool of $1.5 million to aid Central Corridor small businesses could grow

Saint Paul mayor Chris Coleman hit the key notes: preparing businesses for the coming Central Corridor so they can survive the construction period and thrive once trains begin running down University Avenue.

To do that, he said, Ready for Rail has "an overall strategy" of mitigation steps, technical assistance, and financial aid to offer businesses in need.

Drawing most attention was a planned loan program to provide direct assistance to impacted businesses. Eligible borrowers would pay no interest on the loans and make no payments until after the light-rail line is complete.

Some loans or portions of loans may be forgiven; that is one of the details, along with precise eligibility criteria and which consulting organization will administer the fund, that remain to be decided. "I'd rather do it right than quick," Bell said.

The $1.5 million loan-fund pool consists of $1 million from the Met Council and $500,000 from the Central Corridor Funders Collaborative. Coleman termed it "a small safety net," emphasizing that its effectiveness would come from being part of an overall strategy.

"I'll readily concede that it's not an adequate fund, but it's a start," said Bell. He suggested--but was careful not to promise--that the size of the loan fund could grow.

How might that happen? A Met Council spokesman told The Line it's not likely that that agency would contribute more to the pool. Nancy Homans, Coleman's policy director, says some prospective local funders have already contributed via the Funders Collaborative. But she says that a higher national profile for the project could attract other funders from further afield. And if parts of the project come in under budget that could free up funds that might increase the pool.

Here is a video of the Ready for Rail news conference, prepared by Coleman's office:


Source: Nancy Homans, St. Paul Mayor's Office
Writer: Chris Steller
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