The funding would replenish the city’s Business Impact Opportunity (BIO) fund, which has awarded more than 4,000 grants since it began in 2019. The program has supported businesses during construction projects and, for a time, provided assistance during the COVID-19 pandemic.

About half of the proposed $2 million would come from Denver’s general fund, contingent on City Council establishing a long-term design for the program. The city expects revenue to rise just over 1% in 2027 compared with this year.

Councilwoman Flor Alvidrez said the grants can help businesses absorb unexpected disruption, citing construction for the Broadway bike lane and the ongoing East Colfax bus rapid transit project. Denver has allocated more than $2 million to businesses along Colfax, and the BIO fund was accepting a final round of applications through the end of October.

According to Denver Economic Development and Opportunity, 95% of grant recipients affected by the Colfax project remain open. Alvidrez said the long-term effects on the business corridor are still unclear and described the assistance as limited support to help companies get through construction.

Alvidrez and other councilmembers plan to bring forward an ordinance next month. She said the proposal would cover projects costing at least $10 million and would give the city’s economic development office more options for supporting businesses.

The proposed fund would not cover businesses affected by the Federal Boulevard bus rapid transit project, which is a state project and is expected to begin construction next year. Alvidrez said she is discussing possible support for those businesses with the Colorado Department of Transportation and state lawmakers.