History: Beyond the repercussions to the health and safety of county residents, the unprecedented economic environment created by the COVID-19 pandemic has resulted in necessary business closings, income loss, and unemployment.

While state and federal emergency funding programs for small businesses are now available, the most vulnerable businesses, those with 20 or fewer employees, have the least capacity to access these first-come, first-served funds. Existing barriers faced by businesses owned by people of color, women, or in lower-income areas are only exacerbated by the current crisis.

Alliance for Metropolitan Stability is uniquely positioned to partner with culturally specific community-based organizations to perform outreach and assist small businesses in navigating the array of emergency funding programs. Targeted, culturally competent outreach will increase access to capital and help ensure more equitable outcomes for small businesses in Hennepin County.

Time is of the essence for small businesses to apply for federal and state emergency funding programs before funding is exhausted. Staff recommends direct selection of Alliance for Metropolitan Stability due to its broad connections with community-based implementers. The Alliance is a coalition of community-based organizations with a regional focus that spans urban and suburban communities. More specifically, it has experience working with Hennepin County in partnership with smaller, culturally specific organizations along the Bottineau and Southwest LRT lines. In this emergency situation, the Alliance is able to draw upon existing relationships within its coalition to reach diverse communities in Hennepin County.

The outreach and guidance the Alliance and its subcontractors will provide will help businesses understand the various federal, state, and local funds available to them and how to connect with lenders and government agencies that are administering these funds. The agencies include the Small Business Administration, designated SBA lenders, the State of Minnesota Department of Employment and Economic Development, certain municipalities, and community-based lenders.

Preservation of existing small businesses with a physical location in Hennepin County prevents potential future blight scenarios. Funding for Agreement PR00002173 will come from the 2020 Hennepin County Housing and Redevelopment Authority Fund 32 operating budget (Economic Development).

Current Request: This request is for authorization to negotiate Agreement PR00002173 with Alliance for Metropolitan Stability to provide small business outreach in partnership with culturally specific community-based organizations during the period April 15, 2020 through October 15, 2020, with a not to exceed amount of $100,000.

Impact/Outcomes: Approval of this agreement will assist Hennepin County’s small businesses in navigating federal, state, and local emergency funding programs and prevent future blight.