The city of St. Paul will provide $2,000 grants to poor families and $7,500 to small businesses struggling during the coronavirus pandemic, Mayor Melvin Carter announced Wednesday.
In a presentation to the City Council conducted by video conference, Carter outlined a plan for a $3.25 million "bridge fund" to get cash assistance to the city's neediest residents and small businesses within the coming weeks.
"We have no way of knowing how long this will last, nor predicting the full scope of impacts on our local community," Carter said. "But one thing is obvious: We must take every action we can right now to mitigate its harmful effects."
Families who have experienced a loss of income because of COVID-19, have at least one child in St. Paul Public Schools and earn 40% or less of the area median income — $40,000 a year for a family of four — will be eligible for $2,000 to help pay their rent or mortgage.
Businesses that have 20 or fewer employees, gross revenue of $2 million or less and have been operating in St. Paul for the past six months will be eligible for $7,500 to cover costs including rent, payroll, employee health benefits and payments to suppliers.
The program, which council members are scheduled to vote on April 1, would be funded through the city's Housing and Redevelopment Authority budget and private philanthropy, including from the St. Paul and Minnesota Foundation and Ecolab Foundation.
Council members, speaking through headsets from their homes, expressed support for Carter's plan and noted the growing need among their constituents.
"Until we find the magical pause button that pauses everyone's mortgage and everything, there's going to have to be a conversation about straight cash supporting people," said Council Member Mitra Jalali. "And that's politically difficult, but I think it's necessary, and so I appreciate us being willing to go there."
