Committee reviews ARPA small‑business implementation progress and approves RFP for $100,000 impact study

Economic Development Department staff on Feb. 25 reviewed the city’s ARPA‑funded small business implementation plan, reported performance metrics and announced a competitive solicitation to commission an impact study of the small business ecosystem.

Caitlin Cowart, manager in the Economic Development Department, summarized five priority areas of the ARPA implementation plan with a $33.9 million allocation across access to capital, capacity building, ecosystem enhancement, localism and geographic placemaking. Cowart said nearly 2,000 participants have benefited from city programs to date and highlighted several named initiatives, including a 0% interest loan buy‑down program, LaunchSA enhancements, facade and outdoor space matching grants and corridor leadership work through the Revitalized SA program.

Staff described several program outcomes and partners: the 0% interest loan buy‑down program offers loans between $500 and $100,000 and has a FY25 buy‑down budget of $1,000,000; partnerships with the Maestro Entrepreneur Center, Ed Lowe Foundation, Prosper West, LISC and LiftFund were noted; more than 400 surveys were completed as part of a digital presence program; and facade/outdoor spaces grants have dozens of awardees expected to be paid in full this spring.

Cowart and staff proposed a competitive solicitation (RFP) to update the 2020 small business ecosystem study and to measure the impact of investments since 2020. The project budget is $100,000 (to be paid from EDD general fund budget); the contract would be no longer than one year. The RFP will include both quantitative and qualitative research; staff said they expect an approximately six‑month study period, contract approval in May and a final report by December. The study will assess current gaps in access to capital, measure outcomes of public and private investments made since 2020, and recommend next steps.

Committee members and staff discussed evaluation and metrics at length. Council members asked for outcome‑focused measures (revenue change, jobs created/retained) beyond output metrics (number served). Councilmembers asked that the study and ongoing reporting capture whether applicants who did not receive grants subsequently survived, to better understand program targeting. Several speakers emphasized the value of local delivery organizations (BDOs) and asked that stakeholders beyond a small set of consultants be included in qualitative research and vendor teams.

Councilmembers also raised questions about future funding for programs after ARPA: staff said they are tracking program performance and will present data to inform 2026 budget decisions. On partnerships, staff said Prosper West continues to receive ARPA and LISC support after general fund allocations were repurposed; LiftFund and other partners are pursuing matching funding for the 0% interest loan program. Marketing staff said future buy‑local campaigns will include device targeting and measurable impressions and downloads for the Buy Local savings pass.

The committee did not take a vote on program funding at the meeting; staff will release the RFP for the impact study and return with contract recommendations.