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Bill Summary · SF 5157

Summary: SF 5157 (2025-2026) – Rondo Community Land Trust Grant Appropriation

Purpose and Intent

This bill seeks to stimulate economic development and stability for small, locally owned businesses along specific commercial corridors in St. Paul (University Avenue and Selby Avenue). It does so by appropriating state funds to the Rondo Community Land Trust (RCLT) to establish a small business assistance program, providing grants and forgivable loans to eligible businesses, and requiring reporting on program results and impact.

Key Provisions

  • Appropriation Amount and Source

    • Authorizes a $3,000,000 general fund appropriation in fiscal year 2026 to the Department of Employment and Economic Development (DEED) for a grant to the Rondo Community Land Trust.
    • The RCLT administers the program and awards grants/forgivable loans to eligible local small businesses.

  • Eligible Activities and Uses of Funds

    • Grants may be used for:
    • Commercial rent or mortgage payments
    • Utility expenses
    • Payroll and employee retention costs
    • Equipment purchases or repairs necessary for operations
    • Inventory replacement or working capital
    • Other operating expenses necessary to stabilize and support small-business activity

  • Eligibility Criteria and Priority

    • RCLT must prioritize grants to:
    • Locally owned and operated businesses
    • Businesses owned by entrepreneurs from historically underserved communities
    • Businesses that have faced financial hardship or revenue loss due to disruptions (e.g., Operation Metro Surge or other corridor disruptions along University/Selby)

  • Ineligibility

    • Capitol Area Architectural and Planning Board (CAAPB) is not eligible to receive a grant under this section.

  • Administrative Costs

    • RCLT may retain up to 10% of the appropriation to cover administrative costs related to implementation, outreach, and management.

  • Reporting and Evaluation

    • By February 1, 2027, RCLT must submit a report to the chairs and ranking minority members of the legislative committees with jurisdiction over economic development. The report must include:
    • Number of businesses assisted
    • Amount and type of assistance provided
    • Geographic distribution of funds
    • Summary of outcomes related to business stabilization and corridor economic development

  • Funding Availability and Duration

    • The appropriation is available until June 30, 2027.
    • Effective date: The act becomes effective the day after final enactment.

Who Would Be Affected

  • Primary Beneficiaries

    • Small, locally owned businesses located along the University Avenue or Selby Avenue corridors in St. Paul.
    • Specifically benefits entrepreneurs from historically underserved communities that have faced hardship or disruption.

  • Administering Entity

    • Rondo Community Land Trust (as the grant recipient and program administrator).

  • State Agency Involvement

    • Minnesota Department of Employment and Economic Development (DEED) provides the grant funds to RCLT.

Procedural and Timeline Highlights

  • Introduced and Referred

    • Referred to the Senate Jobs and Economic Development Committee (April 16, 2026).

  • Reporting Deadline

    • Comprehensive program report due by February 1, 2027.

  • Funding Window

    • Funds available for obligation in fiscal year 2026; program utilization must occur before June 30, 2027.

  • Effective Date

    • Provisions take effect the day after final enactment.

Potential Impacts and Considerations

  • Expected impact includes stabilization and potential growth of small businesses along targeted corridors, with emphasis on equity by prioritizing underserved communities.
  • The 10% administrative cap helps ensure most funds reach frontline businesses but provides a dedicated mechanism for program administration.
  • The reporting requirement will help assess geographic spread, use of funds, and outcomes, informing potential future expansions or reforms.
  • Exclusion of CAAPB as an eligible recipient narrows the pool of organizations that can directly receive the grant.

This bill concentrates a targeted, one-year appropriation to support small business resilience in a specific neighborhood corridor, with accountability measures to evaluate effectiveness.

Compiled from official sources — confirm details with the bill’s official record.

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