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Committee tables $400,000 ARPA reallocation for small-business grants after Hispanic Federation testimony
Summary
A proposed reallocation of $400,000 in ARPA-derived funds to a small-business 'Prospering Lawrence' grant was tabled after the Hispanic Federation's president said the city had not provided the funds and committee members expressed concern about program design and administration outreach.
The Lawrence City Budget and Finance Committee on Jan. 29 tabled consideration of a $400,000 transfer of ARPA-derived funds to a small-business grant program after hearing testimony from Sarah Perez, president of the Hispanic Federation, and extended discussion about program rules and administration readiness.
The item had been posted to reallocate $400,000 from ARPA/free cash to a Prospering Lawrence small-business grant. At the start of the discussion the committee un-tabled the item so the mayoral administration could present a plan. Committee members said the administration had not yet finalized distribution rules and urged staff to return with a clear, equitable process.
Why it matters: The funds were originally allocated to the Hispanic Federation; committee members and the federation's president said local small-business owners need timely, well-targeted assistance. Perez told the committee, "We have not decided not to accept. That city is not giving it to us," and added that many business owners need operating support, bookkeeping assistance and equipment rather than facade grants alone.
Administration, committee concerns and tabled motion: Senior adviser Stephanie Infante and other administration representatives told the committee they had met with local partners, including the Lawrence Partnership, and were planning additional consultations with groups such as MCCI. The administration said it wanted to ensure a balanced set of awards across start-ups and growth-phase firms and to avoid the earlier controversies that followed a $500,000 distribution.
Councilors expressed frustration that the mayor had publicly urged residents to contact councilors in support of the measure before a distribution plan was finalized. One councilor said the mayor had mentioned the item on radio and in public appearances while staff were still preparing logistics.
Sarah Perez, president of the Hispanic Federation, said the federation had not received the $400,000 and that it would prefer the city to design a program that addressed immediate operating needs for small businesses (for example equipment or refrigeration) rather than fronting only facade improvements.
After extended discussion about eligibility, reimbursement rules and required administration capacity, the committee voted to table the matter pending a firm plan from the administration. Members asked staff to provide distribution criteria, whether grants will be reimbursable or upfront, and proposals for outreach to business owners who did not participate in prior rounds.
Next steps: The committee requested that the administration return with a written distribution plan, including proposed eligibility criteria, payment method (reimbursement vs. direct grants), and outreach strategy; staff also were asked to consult with local business groups before the item returns to the committee.
