San Antonio entrepreneurs in historically underserved neighborhoods can expect a boost as $1.5 million in federal pandemic aid is funneled to support small businesses via local nonprofits. The funds, coursed through the American Rescue Plan Act, are earmarked for six organizations that have been operating on slender resources while awaiting these much-needed monies.
After long delays, three San Antonio economic development nonprofits that worked under the strain of the pandemic will finally see operational funds. Prosper West, Southside First, and SAGE—focused on the West, South, and East sides of the city, respectively—were allocated these funds in the city’s fiscal year 2024 budget but have yet to receive them from the city's general fund, as reported by San Antonio Report. The delay in funding has forced organizations to make cuts, with Prosper West experiencing a shake-up that led to their CEO's resignation in May.
Fueling the nonprofits' efforts is LISC San Antonio, a local arm of a national nonprofit focused on bolstering community development groups. LISC took initiative to form the BDO Alliance in 2022 which aims to solidify the city's disjointed small business support network. "The funding and the support are “part of a coordinated strategy” to build or rebuild the capacity of these organization," LISC San Antonio Executive Director Leilah Powell told San Antonio Report. LISC's role extends beyond immediate funding, as it promises ongoing support through the BDO Alliance even after the current funding runs out at the end of next year.
Joining the ranks of beneficiaries are three nonprofits receiving city funding operations for the first time. Among them is the Maestro Entrepreneur Center, which provides financial literacy workshops and technical support to businesses across Bexar County. Geremy Landín, executive director for the past year, has plans to hire additional staff to further outreach endeavors. Meanwhile, Culturingua and American Indians of Texas at the Spanish Colonial Missions (AIT-SCM) seek to leverage the new funds to grow their small business support, with AIT-SCM spotlighting the growing population of Native American entrepreneurs in the region. "We’re hoping this opportunity will help draw American Indians out, make them more visible," AIT-SCM Executive Director Ramon J. Vasquez expressed in an interview with San Antonio Report.
As the city reconciles with its audit findings of inadequate monitoring of contracts, local nonprofits anticipate a positive turn with the arrival of the federal funds. SAGE, for example, faced with the actuality of over-reliance on sparse funding sources, is actively diversifying its financial groundwork. “But we need to be looking at having 30 funders, not just two or three.” SAGE leader James Nortey stated, suggesting a proactive pivot away from dependency on narrow funding channels.
