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Request for Committee Action

A briefing memo explaining the purpose, background, and impact of the requested action.
Business Technical Assistance Program (BTAP) 2022 Cultural Districts funding recommendations (RCA-2022-00982)

ORIGINATING DEPARTMENT
Community Planning & Economic Development
To Committee(s)
# Committee Name Meeting Date
1 Business, Inspections, Housing & Zoning Committee Nov 7, 2022
Lead Staff:
Zoe Thiel
Presented By:
Zoe Thiel
Action Item(s)
# File Type Subcategory Item Description
1 Action Contract/Agreement

Authorizing grant agreements for the Business Technical Assistance Program (BTAP), subject to modifications as approved by the Director of the Department of Community Planning & Economic Development, as follows: African Development Center, $30,000; Black Women's Wealth Alliance, $50,000; Castelli Business Services, $20,000; Davis Law Office, $60,000; Just Law, $30,000; Latino Economic Development Center, $70,000; Lake Street Council, $70,000; Metropolitan Economic Development Association, $50,000; New American Development Center, $20,000; Neighborhood Development Center, $50,000, Northside Economic Opportunity Network, $50,000; Seward Redesign, $40,000; Think Small Institute, $40,000; West Bank Business Association, $70,000; West Broadway Business and Area Coalition, $50,000.

Ward / Neighborhood / Address
# Ward Neighborhood Address
1. All Wards
Background Analysis

The City of Minneapolis’ Business Technical Assistance Program (BTAP) provides funding for business-consulting services that support new business development, retention, and growth, focusing on minority and women-owned businesses.  BTAP aligns with the City’s adopted goal of “Economic Development: The City prioritizes economic inclusion so that all workers and families are supported and People of Color, Indigenous and Immigrant (POCII)-owned businesses in all sectors can thrive” and the 2019 priority “Increase the number of Minneapolis-based businesses owned by Black, Indigenous, and People of Color; and increase businesses with BIPOC ownership that are still in business after 5 years.” 

BTAP allows the City to expand its capacity by funding local, non-profit business development organizations that already have community organizing expertise, cultural competency, and technical skills to provide the assistance.

Current Funding Round

In May of 2022, the City approved $700,000 in American Rescue Plan Act (ARPA) funding for additional technical assistance and outreach to small businesses.  These funds prioritized service to the four Cultural Districts and the neighboring businesses which have been disproportionately impacted by the COVID-19 pandemic and represent historically marginalized communities that have faced outsized economic hardship in that last two years (Cedar Riverside, East Lake, West Broadway, and 38th & Chicago). 

A Notice of Funding Availability (NOFA) soliciting proposals for this supplemental round of funding was released to neighborhood organizations, community development corporations, business associations, and other community partners; and posted on the City’s website on September 8, 2022. CPED received 18 proposals by the September 30 deadline requesting a total of $1.9 million.  

 Recommendation Process

The evaluation team reviewed each proposal based on the following criteria articulated in the RFP:

  1. Applicant's mission, background, and performance
  2. Applicant's services, expertise, and systems
  3. Priority Populations
  4. Marketing, outreach, and screening

Recommendations for funding were determined by a combination of:

  1. Average score of each proposal to meet the criteria listed above
  2. Level of available and requested funds
  3. Dollars remaining on an organization’s current BTAP contracts  

The selected service providers will enter into funding agreements with the City to deliver specified services to Minneapolis businesses and entrepreneurs. Service providers will be required to track and report to the City, at minimum, the following: demographic information, types of businesses assisted, number of hours assisted and nature of the assistance. Staff provides all the report templates online.  Organizations are paid on a reimbursement basis after the assistance has been provided and the deliverables have been received and reviewed by staff. 

Recommendation

Staff recommends partial or full funding for 15 proposals to include funding for both one on one technical assistance, business outreach, and additional supportive programming, e.g. workshops. 

Of the four Cultural Districts identified as a focus for this funding, the West Broadway, East Lake Street, and Cedar-Riverside Cultural Districts each have multiple service providers with a dedicated geographically specific focus.  On the 38th Street Cultural District, there are multiple providers that offer services inclusive of this area, but none that are specific to that area.

Funding requested/ Recommended

Organization

Requested

Recommended

Rationale

African Development Center

$65,000

$30,000

Longstanding BTAP provider serving African immigrants located in Cedar Riverside Cultural District

Accelerator Training and Consulting, LLC

$86,125

Proposal does not sufficiently address prioritization of Cultural Districts

Black Women's Wealth Alliance

$250,000

$50,000

Business development center and incubator located in the West Broadway Cultural District, focused on serving Black women

Castelli Business Services

$93,840

$20,000

New service provider with targeted focus on East African businesses in Cultural Districts

Davis Law Office

$100,000

$60,000

Current BTAP provider offering high-demand legal services, serving multiple Cultural Districts

Just Law

$41,000

$30,000

Current BTAP provider offering high-demand legal services, serving multiple Cultural Districts

Kharis Consultants

$45,000

Proposal does not sufficiently address prioritization of Cultural Districts

Latino Economic Development Center

$140,000

$70,000

Longstanding BTAP provider serving Latino entrepreneurs, with programming focused on East Lake Street Cultural District

Lake Street Council

$70,000

$70,000

Longstanding BTAP provider serving Lake Street, including the East Lake Street Cultural District

Metropolitan Economic Development Association

$99,950

$50,000

Previous BTAP provider located in north Minneapolis serving multiple Cultural Districts

New American Development Center

$50,000

$20,000

Previous BTAP provider with targeted focus on East African businesses in Cultural Districts

NCXT

$50,000

Proposal does not sufficiently address prioritization of Cultural Districts

Neighborhood Development Center

$124,000

$50,000

Longstanding BTAP provider serving multiple Cultural Districts

Northside Economic Opportunity Network

$260,250

$50,000

Longstanding BTAP provider serving north Minneapolis, located in West Broadway Cultural District

Seward Redesign

$100,000

$40,000

Longstanding BTAP provider serving the recovery area adjacent to the East Lake Street Cultural District and including a portion of the Franklin Avenue Cultural District

Think Small Institute

$50,000

$40,000

New service provider with targeted focus on supporting childcare businesses in Cultural Districts and surrounding neighborhoods.

West Bank Business Association

$102,000

$70,000

Longstanding BTAP provider serving Cedar Riverside Cultural District

West Broadway Business and Area Coalition

$180,000

 $50,000

Business association serving West Broadway Cultural District

$1,907,165

$700,000