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Committee hears bill to maintain funding for DEED small-business assistance program
Summary
Representative Wayne Johnson asked the House Workforce, Labor, Economic Development and Finance Committee on March 27 to preserve 2023 funding levels for the Department of Employment and Economic Development’s Small Business Assistance Partnerships program.
Representative Wayne Johnson moved House File 19‑65 forward for later consideration on March 27, 2025, asking the committee to preserve funding for the Department of Employment and Economic Development’s Small Business Assistance Partnerships program.
The bill would maintain the funding level for the program that contracts with nonprofit economic development organizations and community development financial institutions to provide free technical assistance to entrepreneurs across Minnesota.
The program “is a cornerstone of DEED’s small business programs,” Johnson said, and he called attention to local partnerships that deliver services in Greater Minnesota and the Twin Cities metro. He told the committee that the program helped create or preserve more than 20,000 jobs in 2023 and leveraged about $158,000,000 in public and private financing, according to a handout submitted to the committee.
Michelle Morozki, interim executive director and business development manager for Kandiyohi County Economic Development, urged support for House File 19‑65 and asked the panel to preserve the 2023 funding level. “Since 2021 Elevate CBA has helped over 100 Kandiyohi County entrepreneurs graduate from a 12‑week business development course leading to more than 35 new small businesses in Kandiyohi County,” Morozki said. She requested a one‑time investment of $7,400,000 to maintain the program’s work.
Janet Grama, founder of Patient and Bubbles Childcare in Mankato, described the local need for childcare and how technical assistance helped open her business. Lee Hall, founder and CEO of Nextage, and a speaker for the Economic Development Association of Minnesota’s government relations committee, described the importance of steady funding so service providers can remain viable and continue serving entrepreneurs in underserved communities.
Committee members asked no formal questions after testimony. Chair Baker said the committee would hold House File 19‑65 for further consideration at a future meeting.
Votes at the hearing were procedural: Representative Wayne Johnson moved the bill forward; the motion was accepted and the bill was laid over for further consideration by the committee.
