HF5024

Purpose

Provide funding to help small Minnesota businesses that were financially harmed by federal immigration enforcement activities known as Operation Metro Surge. The goal is to stabilize and keep these businesses operating.

Main Provisions

• Funding and administration
  • A one-time appropriation of $3,000,000 from Minnesota’s general fund in fiscal year 2026.
  • Money goes to the Commissioner of Employment and Economic Development to grant to the African Development Center.
  • The African Development Center will create and run a forgivable loan program for eligible small businesses affected by Operation Metro Surge.
• How forgivable loans work
  • Loans may be forgiven if recipients meet program requirements set by the African Development Center.
  • Eligible uses include: paying commercial rent or leases, utility bills, payroll and employee retention costs, replacing inventory, covering revenue losses from temporary closures or disruptions, and other working capital needs to stabilize operations.
• Eligibility requirements
  • Businesses must be small (50 or fewer full-time equivalent employees).
  • Must be located in an area directly impacted by Operation Metro Surge.
  • Must show financial losses attributable to the disruption caused by Operation Metro Surge.
  • If located outside the seven-county metropolitan area, eligibility must be determined in partnership with CAIRO (Center for An Inclusive Regional Organization) and the Immigrant Development Center.
• Administrative and reporting details
  • The African Development Center may use up to 5% of the appropriation for administrative expenses.
  • By February 1, 2027, the Center must report to the chairs and ranking minority members of the relevant legislative committees. The report should include: the number of businesses helped, geographic distribution of grants/loans, total amount awarded, and descriptions of outcomes and impacts on business stabilization and retention.
• Time frame
  • The appropriation is one-time and available until June 30, 2027.

How the Program Works (Overview)

• The state provides funds to the African Development Center.
• The Center runs a forgivable loan program for qualifying small businesses damaged by Operation Metro Surge.
• Loans cover key costs to keep businesses open (rent, utilities, payroll, inventory, etc.).
• Businesses that meet requirements can have their loans forgiven.
• If outside the main metro area, eligibility is coordinated with CAIRO and the Immigrant Development Center.
• The Center reports back to legislators with results by early 2027.

Impact and Significance

• Targets economic disruption caused by federal immigration enforcement activities.
• Aims to help small Minnesota businesses stay afloat and retain employees during and after disruptions.
• Provides a mechanism for recovery funding that does not require repayment if conditions are met.

Significant Changes to Law

• Introduces a new, one-time funding program administered by the African Development Center to provide forgivable loans to impacted small businesses.
• Establishes eligibility criteria tied to Operation Metro Surge disruptions.
• Creates a coordination requirement with CAIRO and the Immigrant Development Center for outside-the-area applicants.
• Adds a formal reporting requirement to legislative oversight bodies and permits a small administrative cost cap for the Center.

Relevant Terms - forgivable loans - small business - Operation Metro Surge - CAIRO - Immigrant Development Center - general fund - Minnesota - seven-county metropolitan area - administrative expenses - report - stabilization - revenue losses - working capital - payroll - rent - utilities - inventory