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Proposed Florida Legislation Seeks to Shield Small Businesses from Construction Woes

With yet another major road project disrupting the heart of Orlando, Florida lawmakers are stepping up to ensure small businesses don’t get left behind. House Bill 215 and Senate Bill 324 aim to provide crucial financial relief to business owners directly impacted by prolonged construction projects, preventing closures and economic distress in affected areas. The proposal will be considered during the 2025 legislative session that begins March 4.

A Lifeline for Small Businesses

As the Summerlin Avenue Improvement Project kicks off, business owners in downtown Orlando are bracing for the worst. The ambitious three-year endeavor, stretching from South Street to Marks Street, is a joint effort by the City of Orlando and the Orlando Utilities Commission to modernize utilities, stormwater systems, and sanitary sewers. While these upgrades promise long-term benefits, the immediate reality for local businesses is one of uncertainty and financial hardship.

It’s been a hard year for small businesses in Orlando that have had to weather the impact of months-long construction projects in areas like the Milk District, east of downtown, and the Ivanhoe Village district. They also reportedly suffered losses from a sewer project along Orange Ave that reduced available parking for visitors and made a stretch of local businesses more difficult for people to frequent.

Recognizing this challenge, state lawmakers have introduced the Construction Disruption Assistance Program. If approved, this initiative would provide direct financial aid to businesses suffering tangible losses due to ongoing roadwork. State Rep. Anna Eskamani and Sen. Carlos Guillermo Smith, both Democrats representing parts of Orlando, filed legislation (HB 215/SB 324) for consideration by the Florida Legislature that would create a state grant program for small businesses negatively affected by local or state government construction projects, if approved.

Under the proposal, businesses eligible for assistance would include small businesses of up to 50 employees “whose primary access points are obstructed by state or local government construction activities directly adjacent to or in front of the business.”

Financial Assistance and Loan Options

The proposed program, to be overseen by the Florida Department of Commerce, would offer forms of financial assistance that include financial grants of up to $25,000 per construction phase for demonstrable loss, defined as “a verifiable reduction in revenue, property damage, or increased operational costs directly attributed to state or local government construction activities.”

Another form of assistance the program would offer: low-interest loans of up to $100,000 for the operational costs of eligible applicants during construction disruptions. Interest rates would not exceed 3 percent per year, under the proposal. The program would be funded through an existing Florida Job Growth Grant Fund.

Political Support Gaining Momentum

The proposal was filed for consideration by state lawmakers during the regular 60-day state legislative session that begins March 4. Although Eskamani and Guillermo-Smith — both progressives — face a tough crowd in a GOP-controlled state Legislature, the legislation itself is business-friendly, which should ostensibly appeal to their similarly business-friendly colleagues.

Under Eskamani and Guillermo-Smith’s proposal, the state Department of Commerce would be required to set up a hotline for the proposed Construction Disruption Assistance program, to offer information about available financial assistance for small businesses impacted by construction. The department would also be required to come up with a public awareness and marketing campaign, in collaboration with chambers of commerce and other business groups, to help ensure that business owners are aware the program exists.

A Step in the Right Direction?

Critics argue that while the proposed program is a step forward, more safeguards are needed to prevent businesses from facing financial devastation in the first place. They call for additional measures such as tax breaks, expedited construction timelines, and increased transparency in planning future projects.

To pass, the bill would need to be approved by legislative committees, as well as a majority of legislators in both the Florida House and Senate. If the bill is passed by both chambers and signed into law by Florida Gov. Ron DeSantis, the law would take effect July 1, 2025.

For now, the fate of many Orlando businesses hinges on whether lawmakers can come together to pass this much-needed legislation. One thing is certain: without intervention, small businesses along Summerlin Avenue could face an uphill battle just to keep their doors open.

Written by Melissa Donovan

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