As construction for Denver’s Bus Rapid Transit (BRT) system continues along East Colfax Avenue, small business owners like Walter McDonald are struggling to stay afloat amid the disruption.

“We're doing okay, we're getting by,” McDonald, owner of Lifetime Tattoo, told CBS News Colorado. “But other businesses, you can really see that it can shut them down.”

McDonald has operated his tattoo parlor just past Lafayette Street for 24 years, but says the BRT project has severely affected both customer traffic and neighborhood morale.

“[The disruption is] definitely on par with COVID in terms of the impact it's had on our business,” he said.

Microgrants Provide a Lifeline

While the City of Denver earlier this year unveiled a grant program offering up to $15,000 per business to those who could prove a 20% or greater loss tied to the BRT construction, many business owners voiced skepticism. CBS Colorado reported concerns that the city’s process felt more like a way to disprove eligibility than provide meaningful support.

In response, the Colfax Avenue Business Improvement District (BID) stepped in with its own privately funded microgrant program, offering smaller—but more accessible—amounts of support ranging from $500 to $1,500.

“We think of it as a tool,” said Denon Moore, business support director for the BID and a Colfax Avenue business owner herself. “They can put $1,500 towards a project to stimulate sales for some type of promotion. I’m on the street every day speaking with operators. I don’t think it’s hard for many of them to see a 10% loss has occurred.”

Unlike the city’s grant process, the microgrant program requires businesses to show just a 10% loss, making it more attainable for the many shops suffering from decreased foot traffic and limited access caused by the ongoing street work.

Moore said businesses can use the microgrants for a wide range of purposes — from marketing and promotions to covering surprise expenses or overdue bills.

“It could be seed money for projects or a stopgap for a bill or unexpected expense that an owner already on the margins due to construction could absorb,” Moore explained.

Frustration Mounts as Work Continues

Despite the new funding options, McDonald remains wary that the help might be arriving too late for some.

“It is a nice gesture, but it's not gonna help us,” he said. “But the lack of foresight, the lack of planning on the impact to small businesses is unbelievable.”

Several local businesses have already announced closures directly tied to the BRT construction, citing revenue losses and limited access as reasons they can no longer operate.

The multi-year BRT project, which aims to improve transit options across Denver, includes dedicated bus lanes, pedestrian enhancements, and upgraded stations, but its construction phase has turned Colfax Avenue into a congested construction zone.

The city plans to continue construction through at least the end of 2025, leaving Moore, McDonald, and other Colfax business advocates working tirelessly to preserve the street’s character and economic vitality during the disruption.

Originally reported by Andrew Haubner in CBS News.