Business owners told the Senate committee they are just trying to survive and need help.
ST PAUL, Minn. — People from across Minnesota testified in front of the Senate Jobs and Economic Development Committee, asking for a relief bill for small businesses.
Businesses across the state have been impacted by Operation Metro Surge. Bobby Joe Champion (D), chair of the jobs and economic development committee working on drafting a bill, but wanted to hear from people impacted first.
Daniel Del Prado founded DDP Restaurant Group and employs 900 people. He told the what they’re experiencing now is worse than COVID, because it’s only applicable to Minnesota.
“Our sales went down 50%. Some community-based restaurants, their sales went down to 90%,” he said. “I asked my vendors for 3-4 weeks time to pay my bills that, was four weeks ago. I took four loans, four high-interest loans because banks would not give loans to restaurants right now to make payroll and stuff like that.”
Ricardo Hernandez Espinoza owns 11 ice cream shops called La Michoacana Purépecha. He said his business is growing, but the operation has put an end to that. He told the committee he had to stop a $400,000 project in St. Paul.
“I’m here to ask you guys to help us introduce a bill, help us pass it, and help our businesses survive,” he said. “We’re not looking at growing anymore, we’re looking at surviving.”
It’s not only metro area businesses who feeling the impacts of the surge.
Scott Marquardt, president of Southwest Initiative Foundation, said immigrant-owned businesses have redefined main streets across rural Minnesota. He’s worried about what will happen to those businesses if they don’t get relief.
“There is significant loss of working capital, loss of revenue, and that’s impacting the families up and down the commercial corridors, the main streets in these rural areas. The Ag businesses that support them and everywhere else. Please consider emergency relief funding for the businesses,” Marquardt said.
Stephanie Shimp, who owns Blue Plate Restaurant Company, said within the last six weeks her six restaurants have lost $400,000 and is behind on rent by 60 days. She said she’s been driving employees to work, too scared to travel on their own, and is helping to cover legal fees for staff.
Charles Spies opened his dream shop, Crumbs & Coffee, in Brooklyn Park, but now he isn’t sure that dream will survive. He said his sales were down 70% in January, and he is estimating losing $7,000-$8,000 a week.
A few mayors also testified at the hearing.
“I’ve visited numerous of our businesses and they all tell me business is down double digits, for most, they are down 60-70%. May tell me that they can’t even make rent,” said St. Paul Mayor Kaohly Her.
Minneapolis Mayor Jacob Frey said at a Meet Minneapolis conference that they’re noticing people cancelling events.
“There are conventions in real-time that are concerned about safety in Minneapolis due to the operation Metro Surge; to be clear, it’s not due to crime,” he said.
Mary Supple, mayor of Richfield, said the economic impact of Operation Metro Surge is also far worse than COVID. She said 2-3 businesses have said they will not survive, and other businesses have maxed out their credit cards.
“There is significant loss of working capital, loss of revenue, and that’s impacting the families up and down the commercial corridors, the main streets in these rural areas. The Ag businesses that support them and everywhere else. Please consider emergency relief funding for the businesses,” she said.
Sen. Champion said he hopes to have a draft of the bill by next week. He said it will either be a standalone bill or part of an omnibus bill.
