The Resiliency Fund: Supporting East Side Businesses Through Disruption

To help East Side Saint Paul businesses weathering road construction and shifts in governmental supports, we are investing $810,000 in a mix of business loans and technical support over the next 12-18 months.

What’s Happening?

  • The Minnesota Department of Transportation is reconstructing Arcade Street in 2025 and East 7th Street in 2026, causing prolonged disruptions to key commercial corridors.
  • Construction has significantly reduced foot traffic, leading many small businesses to experience substantial declines in sales.
  • Concurrent federal cuts to Small Business Administration and CDFI funding are further weakening the support systems that local businesses rely on for low-cost working capital—particularly women-owned, veteran-owned, and entrepreneurs of color.

“Because of the unexpected road closure, we have been closing earlier than normal store hours. At this rate, I am afraid I will fall behind due to the loss of revenue.”
 — Family Foods Market, 950 Arcade St, Grocery Store

Our Response:

Early in 2025, the Rooted Philanthropic Board of Directors discussed these East Side realities. They determined that we should be doing something to support the small business owners being impacted by construction as well as the reduced access to low-cost capital.

Through that engagement, the Rooted Philanthropic Board and staff decided to invest $650,000 in strategic support to East Side businesses along with $160,000 in operating funds to our partners who will lead the work.

To help East Side Saint Paul businesses weathering these overlapping disruptions directly, we are investing $810,000 in a mix of business loans and technical support over the next 12-18 months.

Through a Program Related Investment of $500,000 to Latino Economic Development Center (LEDC), we’re enabling access to low-cost working capital for established businesses that are affected by construction, have been historically underserved, or are currently experiencing business distress. We know this working capital loan fund is not the right solution for every distressed business, but for those who need working capital and can take on low cost debt, it may be a life saver.  An additional $100,000 in operating support over 3 years will support LEDC’s administrative oversight of this Program Related Investment.

“We’re thrilled to have the support of Rooted Philanthropic, and their $500,000 loan fund dedicated to the Eastside of Saint Paul. This investment is a powerful boost for small businesses navigating the challenges of construction disruption, and it reflects a deep commitment to economic resilience and community empowerment.” — Alma Flores, Executive Director of Latino Economic Development Center

In addition, we’ve partnered with African Economic Development Solution (AEDS), Asian Economic Development Association (AEDA), East Side Neighborhood Development Corporation (ESNDC), Hmong American Partnership (HAP), Latino Economic Development Center (LEDC), Neighborhood Development Center (NDC) and Women Venture in providing technical assistance (TA) to East Side small businesses through a $150,000 fund. These partners will provide TA to East Side businesses and get reimbursed for these services.  This process will allow small businesses to access support services to strengthen their businesses, and for the foundation to capture data on the businesses served and the types and impact of the TA provided.

The East Side Area Business Association (ESABA) will lead outreach to East Side small businesses, assess Business Technical Assistance needs, and refer the business to the appropriate TA provider. This will ensure each business is matched with the right business technical assistance provider that has the expertise needed to support that business. A grant of $60,000 to ESABA Charitable Foundation will provide the support necessary to conduct business assessments and referrals over the next 12-18 months.

“ESABA is hopeful that resiliency will be the result. These are uncertain times, and though the construction impacts are viewed as temporary, they are one among many shocks small businesses have registered since COVID. At this time more than any other, we need a coordinated and sustained approach to outreach, support, and connection for our BIPOC and family-owned small businesses.” – Paris Dunning, Executive Director of East Side Area Business Association

This Resiliency Fund initiative is a strategic investment in long-term resilience and viability for one of Saint Paul’s most diverse and culturally rich business communities. The learning that will take place over the next year about what works to resource and support our small businesses will inform future efforts to create a Technical Assistance Hub and other support services to strengthen the East Side business community.