City releases plans for $7 million aid to support businesses after Operation Metro Surge

The Minneapolis City Council voted to move forward with a plan to help small businesses impacted by Operation Metro Surge. The $7 million Small Business Resiliency Fund was approved by Mayor Jacob Frey and the City Council last month and outlined by the Community Planning and Economic Development (CPED) department on Tuesday. It will provide license fee relief, support for events and activations in commercial areas, cultural market grants and more, all in an effort to recover from the $81 million in restaurant and small business losses as a result of the federal immigration enforcement earlier this year.

"Operation Metro Surge hit our small businesses hard, and we recognize the very real impact it has had on workers, their families and their futures," said Mayor Frey. "This $7 million is getting out the door so our businesses can restabilize, rebuild and come back stronger."

CPED staff designed the fund to get money out to businesses quickly and without too many hurdles. By City estimates, the Surge cost Minneapolis businesses $81 million in lost revenue as many temporarily closed to avoid further impact.

"ICE's invasion of our city where they murdered, kidnapped, and traumatized our residents will have devastating impacts on our communities for years to come," said City Council President Elliott Payne, Ward 1. "We know businesses have been struggling, and I'm proud the City Council took this step to try and provide some relief. We recognize this isn't nearly enough to meet the current need, but the cost of inaction outweighs the financial restraint in this moment."

Fund is in two categories

The resiliency fund is divided into two categories: direct financial relief, and activation and marketing support, both aimed at stabilizing small businesses and driving customers back to commercial corridors.

Direct financial relief - $4.5 million

1. License fee relief - $4 million

The money will cover the full or partial costs of business license fees for the food and hospitality industries that were among the businesses hit hardest by the Surge. As part of this, businesses who have already paid their renewal fees will be reimbursed, and fees will be covered for those yet to pay. The $4 million will benefit more than 2,000 businesses across Minneapolis.

1. Cultural market grants - $500,000

Money will be awarded to cultural markets up to $50,000 each to support overall market operations, security, marketing or other needed improvements.

Activation and marketing - $2.5 million

1. Great Streets Business District Support - $350,000

This is an enhancement of the already successful Great Streets program that provides funding to non-profit business support organizations for marketing and other activations in commercial districts.

1. Business Technical Assistance Program - $500,000

The program offers no-cost consulting services to small businesses and entrepreneurs through community-based support organizations. Related to the surge's impact, this funding will be applied to lease and contract negotiations, marketing and overall business strategy. This brings the total allocation to $1 million for the program.

1. Cultural business weeks - $200,000

Funding enhances the celebrated annual Latino Business Week and Black Business Week with a focus on impacts from the surge.

1. Fee-free events - $600,000

This money is intended to encourage events in commercial areas. Funds can help pay for event permits such as food, amplified sound, or block events.

1. Venue and music activation - $500,000

Funding boosts independent music venues and musicians for hosting events in commercial corridors focused on family, neighborhoods and bold projects.

1. Creative marketing activation - $350,000

Funds will go toward incentivizing content creators around the City to spread the word about artists, businesses and untold stories around the City.

More to come this spring

Additional information and application processes for the venue and music activation, as well as the creative marketing activation, will be available this spring as the City's Arts and Cultural Affairs department solidifies details with partners.

"Immense harm was done to our community, and this is our opportunity to support its recovery," said CPED Director Erik Hansen. "Not one person, not one business was immune from the impact of the operation. It is our duty to help and protect our Minneapolis community, and we believe this plan will help support the people and places that keep our city vibrant."

Read about other impacts to the City due to Operation Metro Surge in the Preliminary Impact Assessment and Relief Needs Overview.