The federal money for Colfax business grants is gone. Council members want to write the program into city law
At Tuesday's briefing on the BIO Fund, city staff said the program has no money set aside for Federal Boulevard's bus project. Amanda Sawyer previewed a proposal due in committee Nov. 10.
Denver's grant program for small businesses hurt by city construction has relied on federal relief money for years. That money has run out, city economic development staff told the Council's Finance and Business Committee on Tuesday, Oct. 27 (watch the briefing).
The program is the Business Impact Opportunity Fund, or BIO Fund, Council record 26-1615. It has paid grants to businesses along East and West Colfax during bus rapid transit construction. Council members are now working on a proposal to make it a permanent part of city law, with its own fund.
Why it matters: several big street projects are next in line, including Federal Boulevard's rapid bus line, Santa Fe Drive and Morrison Road. Business owners along those corridors will want to know whether help exists before construction starts.
What staff said
According to the briefing and the committee slides:
- Who got grants: 100 Colfax businesses received grants over three rounds in 2025, and 88 more over three rounds in 2026. Staff said every eligible business that applied got funding (video at 1:05:48).
- Results: About 95% of grant recipients are still open, and new openings have nearly offset closures. In a city survey, 76% of participants said the grant helped them keep their staff, and two-thirds said it was helpful or very helpful in staying open (video at 1:08:18).
- The money: Staff said the fund has enough left to finish the Colfax project. But the federal money, including pandemic relief funds, is used up. The remaining dollars are slated for Santa Fe, Morrison Road and other projects already planned (video at 1:24:35).
- Federal Boulevard: Staff said there is currently no BIO money set aside for the Federal Boulevard bus project. Neighborhood revitalization funds in that area come from federal community development grants, which can't be used for these kinds of grants, staff said.
- Grant size: Staff said grants are typically $15,000 for larger businesses and $7,500 for smaller ones (video at 1:31:25).
Mayor Mike Johnston's revised 2027 budget includes up to $2 million for businesses hurt by city construction, the Denver Gazette reported. The slides say the economic development office has been working with Sawyer on a "realigned" BIO Fund for 2027 and beyond. Our earlier story has the program's full history.
What our records add: what Council members said
- A bill is coming Nov. 10. Council Member Amanda Sawyer thanked Council Members Chris Hinds and Flor Alvidrez for working with her on changes. She said the proposal would create a special revenue fund just for the BIO Fund, because multi-year projects keep running into year-end deadlines that force unspent money back. It would offer three tools: grants, technical help and possibly tax relief, which she said raises legal questions under the state's TABOR amendment (video at 1:15:18).
- It has to come from the General Fund. Sawyer said the city's finance staff have told members bond money and federal grants can't pay for the fund, so it must come from general city dollars (video at 1:17:50).
- When contractors cause damage. Alvidrez asked how the city holds contractors accountable when they directly harm a business. She described a case where a broken water line flooded a basement and the owner got a $10,000 grant that didn't come close to covering the damage (video at 1:21:35).
- Asking the state to help. Hinds said he and Council Member Darrell Watson have been meeting with Denver's state legislators, arguing that the state should help businesses along Federal Boulevard because the state is running that project (video at 1:26:16).
- Is $15,000 enough? Council Member Paul Kashmann asked about the average grant and said $15,000 is small next to what affected businesses go through (video at 1:32:02).
Our earlier story on the Federal Boulevard bus line covers that project's funding.
What's next
- Nov. 2: Budget amendments are due. The $2 million in the revised budget is subject to the Council's final vote on Nov. 9.
- Nov. 10: Sawyer said the BIO Fund proposal will come to committee. It would appear on our legislation page once it is filed.