The bill would create a new grant program for small businesses that can prove at least a 20% drop in revenue.
SAINT PAUL, Minn. — The Minnesota Senate advanced a measure through committee on Monday that would offer financial relief to small businesses impacted by Operation Metro Surge by establishing a new grant program totaling $100 million.
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The DFL-led Jobs and Economic Development Committee voted to move the bill forward for possible inclusion in a larger bill later this session. Sponsored by DFL Sen. Susan Pha of Brooklyn Park, the measure would determine grant recipients through a lottery system along with competitive bidding for businesses that aren’t selected initially.
To be considered for the grant program, a business would need to prove that it lost at least 20% of its revenue between July 1, 2025 and February 28, 2026. Businesses could collect up to $20,000 in grants as well as up to $250,000 in forgivable loans.
“These are extremely trying times,” Pha said. “I am asking for your support today in making sure we help small businesses.”
Juan Lopez, who owns a coffee shop, restaurant and grocery store in St. Paul’s North End, testified in favor of the bill. Supporters also include major business groups such as the Minneapolis Regional Chamber and the Minneapolis Downtown Council.
“At one point, our grocery store dropped about 30% of its normal sales, foot traffic slowed significantly and we lost inventory as perishable items expired,” Lopez said. “We stayed open, we adapted, we paid overtime to those employees who showed up.”
The bill passed the Senate committee despite opposition from Republicans, who raised a number of concerns about the eligibility and structure of the program. Sen. Carla Nelson said the measure had “too many holes” for her to support.
“This is much too broad,” Nelson said, “and it does not ensure the funds will be used, I think, in the way that you are seeking.”
Republicans on the committee also asked about safeguards for fraud, given the publicity around that issue in the Minnesota state government right now. Senator Pha said she agreed in negotiations to add language around fraud protections, including a requirement that DEED alert the BCA about any suspicious behavior.
“Things that we already do,” DEED’s government relations representative Deven Bowdry testified. “This looks a bit like comfort language to me.”
The Senate Jobs Committee discussed a separate loan program on Monday as well. That program would also be worth $100 million, although it would not come out of the state’s general fund. Discussion on that bill will be continued later this week.
Even if they pass the Senate, both proposals may face a difficult path in the tied House. Republican leaders in that chamber said earlier this month that they would not be supportive of specific relief because of Operation Metro Surge.
