Economic Rebuilding

Arts and Culture Workforce Support

Along with the tourism sector, the creative sector is among the most affected by the current crisis. Nationally, financial losses by nonprofit arts organizations are estimated to be $16.5 billion with 99% of producing and presenting organizations reporting cancelled events. Additionally, local businesses such as restaurants, lodging, retail and parking have been impacted by cancelled events and have seen a decline in audience ancillary spending. The U.S Census Bureau reports that arts, entertainment and recreation will take longer than 6 months to recover. Within the creative sector the workforce is by far the hardest hit with artists/creative workers in the gig economy and women showing the biggest job and income losses. National data sources indicate that 94% of creative workers report lost income, 62% are fully unemployed and 66% are unable to access the resources they need for their work. Prior to the pandemic, data on creative jobs in the Minneapolis Metro showed significant employment disparities between BIPOC and white workers.

This proposal provides funding for small for and nonprofit arts and cultural enterprises so they can hire, contract and train artists/creatives to assist with their pivots and re openings. This initiative enables creative enterprises to message their plans for present and future programming and re-engage audiences and donors. The proposal creates jobs for creatives with a focus on those that are the most impacted by COVID closures. Research shows that creative sector catalyzes and accelerates economic recovery, a growth in arts employment has a positive and casual effect on overall employment.

Career & Skill Building - Green Industry Pathways

Economic impacts from COVID-19 caused mass layoffs. In Minneapolis more than 140,000 people filed for unemployment insurance in 2020 and the overall unemployment rate exceeded that of the State. Further the economic shocks impacted BIPOC residents at a higher rate than their white counterparts. There is a disparity between white and non-white people in educational attainment rates, wages earned, and unemployment or underemployment in Minneapolis. Addressing these disparities stabilize families and provide for opportunities to grow generational wealth.

This program provides focus on creating new career pathways within emerging and/or expanding green industries, such as solar, energy efficiency, and emerging technologies. It provides grants to community-based workforce training partners and industry partners to develop and deliver programing for people to gain skills in identified green sectors.

Cultural District Activation

The City established Cultural Districts to further racial equity, prevent displacement, preserve cultural identity, and fuel economic growth through the creation and prioritized implementation of new investment tools, policies, and practices historically disadvantaged neighborhoods of Minneapolis. COVID-19 prevention measures devastated small businesses in these areas, especially with BIPOC-owned businesses.

The Cultural District Activation provisions will increase capacity for community business organizations with funding to provide small-business navigation support and outreach, provide funding for community events and festivals to attract residents and visitors to the district, provide grants or funding to make capital or service improvements, advocate B-TAP services and subcontracted professional services as needed, provide matching funds for external building improvements, provide forgivable loans for internal building improvements and provide low- or no-interest loans for capital improvements for businesses and commercial property owners.

Small Business Acceleration - 2% Loan Program

Pandemic prevention measures devastated small businesses due to mandatory closures, capacity restrictions, and other measures to slow the spread of the virus creating financial holes and increasing the time for full recovery to a pre-pandemic state. Historically during recovery periods, BIPOC entrepreneurs, especially Black-owned businesses, lag white entrepreneurs having more difficulty obtaining capital to rebound.

This program provides low- or no-interest loans for capital improvements for businesses and commercial property owners throughout the city.

Proposed Action Detail: CPED would administer this program as component of its small business lending program. These funds will provide additional loan capital for the 2% loan program with additional funds to buy-down the interest rate of the private-lender match to make the total loan more affordable for borrower.

Small Business Acceleration - CDFI Support

Pandemic prevention measures devastated small businesses due to mandatory closures, capacity restrictions, and other measures to slow the spread of the virus creating financial holes and increasing the time for full recovery to a pre-pandemic state. Historically during recovery periods, BIPOC entrepreneurs, especially Black-owned businesses, lag white entrepreneurs having more difficulty obtaining capital to rebound.

This program provides seed or supplemental funds for Community Development Financial Institution (CDFIs) that lend money on a more flexible basis than traditional lenders to expand capacity to increase small business loan activity.

Small Business Acceleration - Co-operative Creation and Support Fund

Pandemic prevention measures devastated small businesses due to mandatory closures, capacity restrictions, and other measures to slow the spread of the virus creating financial holes and increasing the time for full recovery to a pre-pandemic state. Historically during recovery periods, BIPOC entrepreneurs, especially Black-owned businesses, lag white entrepreneurs having more difficulty obtaining capital to rebound.

This program provides funds to finance working capital and cover start-up costs for Co-operative businesses development.