San Luis council authorizes application for USDA grant to support businesses impacted by construction

The San Luis City Council voted Feb. 12 to authorize submission of an application to the U.S. Department of Agriculture's Rural Business Development Grant program to establish a small-business assistance fund intended to help businesses affected by nearby construction.

Armando Esparza, director of economic development, said the fund could take the form of a revolving loan program or a grant program; staff kept details intentionally broad in the grant application because award conditions and program structure will depend on the grant terms. The city previously participated in a similar program for 'Salocal' and staff said they would use that experience to shape program parameters if the grant is awarded.

Esparza said if awarded, the city would have about a two-month window to finalize program criteria and would return to council for approval of detailed parameters. He said the city may administer the program directly or partner with a local financial institution to manage applications and repayments.

Mayor declared a conflict of interest on the record for the mayor and a few subsequent items; Vice Mayor presided over the item. After discussion and assurances about fairness in program administration, a councilmember moved to approve and adopt Resolution No. 2354 and authorize submission of the USDA grant application. The motion passed with council recorded as 'Aye' and a single abstention noted in the roll-call summary.

Sources: Remarks by Armando Esparza and council motion for Resolution No. 2354.