Minneapolis and St. Paul receive $2.7M for small business grants and support programs

On April 10, 2025, the Minnesota State Legislature introduced Senate Bill 1832, a significant legislative proposal aimed at bolstering small businesses across various neighborhoods in Minneapolis and St. Paul, as well as surrounding counties. The bill allocates a total of $3.6 million in funding for the first year, with specific provisions designed to support businesses with limited revenue and enhance local economic development.

The bill outlines targeted financial support for several key areas: North Minneapolis, South Minneapolis, and St. Paul. Each of these regions will receive $905,000, with $72,000 earmarked for grants specifically for businesses that reported less than $100,000 in revenue in the previous year. Additionally, $904,000 is designated for grants to businesses in the surrounding counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington, excluding the cities of Minneapolis and St. Paul.

A notable component of Senate Bill 1832 is the $500,000 annual grant to the Neighborhood Development Center (NDC). This funding will support small business programs, including training, lending, and business services, as well as initiatives aimed at enhancing real estate opportunities. The NDC will also provide technical assistance to organizations outside the metropolitan area, helping to implement its small business support model.

The introduction of this bill has sparked discussions among lawmakers and community leaders about its potential impact on local economies, particularly in historically underserved neighborhoods. Proponents argue that the funding will provide much-needed resources to help small businesses recover and thrive, especially in the wake of economic challenges exacerbated by the pandemic. Critics, however, have raised concerns about the effectiveness of such grants and whether they will reach the intended recipients.

As the bill moves through the legislative process, its implications could be far-reaching, potentially reshaping the landscape for small businesses in Minnesota. Stakeholders are closely monitoring the discussions, anticipating amendments and debates that may arise as lawmakers consider the best ways to support local economies. The outcome of Senate Bill 1832 could set a precedent for future economic development initiatives in the state.