City reallocates 14 million to boost small business support

In a recent city council meeting, officials discussed the reallocation of $14 million in American Rescue Plan Act (ARPA) funding aimed at supporting small businesses in El Paso. The funds, initially designated for a new building, will now be directed towards enhancing existing programs with the Better Business Bureau, Project Vida, and Lift Fund. This shift is intended to bolster access to capital, address workforce needs, and strengthen the entrepreneurial ecosystem in the region.

City representatives highlighted the importance of these organizations in providing essential services to local businesses. Clarissa, an economic development official, explained that the selection process for these programs was based on previous CARES funding success and the pressing needs identified through a recent study on small business challenges in the community.

The council approved two amendments: one for Project Vida, increasing funding by $200,000, and another to establish a new agreement with Lift Fund to administer an interest buy-down program for small businesses affected by the COVID-19 pandemic. This program aims to alleviate financial burdens and support job creation, with previous iterations reportedly helping to create over 50 jobs.

Public comments during the meeting underscored the ongoing demand for financial assistance among local businesses, with over 100 applications received this year alone. Speakers emphasized the critical role of small businesses in the local economy and the necessity of continued support.

Additionally, the council addressed amendments to a Chapter 380 economic development agreement with Tenet Hospitals, which included a proposal to adjust the definition of full-time employment to align with industry standards. This change aims to facilitate compliance with employment metrics while acknowledging the evolving nature of the healthcare workforce.

The council's decisions reflect a commitment to fostering economic growth and resilience in El Paso, particularly in the wake of challenges posed by the pandemic. The unanimous approval of funding reallocations and amendments signals a proactive approach to supporting local businesses and enhancing community resources.