San Antonio proposes $18.6 million economic development budget, drops construction-mitigation fund for FY2026

City of San Antonio staff presented a proposed fiscal year 2026 Economic Development budget on Aug. 26 that they said totals $18.6 million, including $9.7 million in restricted funds, and would reduce department staffing from 42 to 40 positions.

The proposal keeps several small-business support programs, including a 0% interest loan product the presentation said would make up to $500,000 available for qualifying businesses, and continues a pilot corridor leadership and revitalization program. Staff also told the council the proposed budget eliminates a previously funded construction mitigation line (a $1.4 million funding level used in FY2025) and replaces one older financing model with a $70,000 restructuring agreement, citing a change in how construction-support projects will be financed.

Why it matters: Council members repeatedly said the construction mitigation funding and other temporary supports are important to small businesses that face access, traffic and revenue disruptions during nearby public works and private construction. Several members asked for more detailed eligibility rules and for evidence showing how past programs affected business outcomes.

Details from the presentation and council discussion

- Staff said the FY2026 economic development budget proposal is $18.6 million in total resources with $9.7 million in restricted funds. Capital administration continues to support two positions, and overall staff count would fall from 42 to 40 as the department implements the updated strategic framework (source: department presentation).

- The presentation described a 0% interest loan program, capped at $500,000 per borrower, intended to support small-business owners and entrepreneurs; staff said prior rounds used a $500,000 contribution from Wells Fargo that reached 164 recipients in earlier implementation (source: department presentation).

- A corridor leadership and revitalization pilot was highlighted: staff said one recent pilot invested $250,000 in corridor revitalization, provided training and connected neighborhood business leaders; 32 participants from corridors including Rosebelt (districts 3 and 5), North Main (district 1) and East Commerce (district 2) completed the program (source: department presentation).

- Councilmembers asked for follow-up information on outcomes and metrics. Councilmember Munguía, among others, asked city staff to revisit the decision to remove the construction mitigation eligibility. Councilmembers also requested written detail on how programs measure success and which businesses benefited from prior investments.

Council requests and staff commitments

Councilmembers repeatedly asked staff to provide: (1) a written breakdown of who received incentive dollars and what the private investment outcomes were; (2) eligibility criteria and timeline details for loan and mitigation programs; and (3) evidence linking training and corridor programs to business-level results. Staff said they can provide the requested metrics, case examples and timelines in writing and follow-up briefings.

What the council did not vote on

No formal motions or votes on the Economic Development budget or specific program changes were recorded during the presentation; council members requested additional information and asked staff to return with clarifications.

Ending

Council members signaled support for small-business tools but pressed staff for more granular performance data and clearer eligibility rules, especially for any program changes that would reduce direct financial mitigation for businesses affected by construction.