Minnesota companies fund $3.5M in grants to help small businesses during ICE surge

Several of Minnesota’s largest companies are funding $3.5 million in grants for small businesses that are financially struggling during the federal immigration operation in the state.

The Minneapolis Foundation announced the grants Jan. 27 and will start distributing money in the coming weeks. The nonprofit will allocate dollars to “established community organizations with deep experience in small business support,” according to a news release.

Businesses can use the funds to make payroll, pay rent and maintain inventory, staff and hours.

“Small businesses and their employees are facing enormous disruptions right now, and these Minnesotans make essential contributions to our regional economy,” R.T. Rybak, president and CEO of the Minneapolis Foundation, said in a statement. “This fund is a great start for the business community to help mobilize resources to support the lives and livelihoods of our neighbors.”

Grants will focus on “areas facing the most pressing needs,” including the metro area’s commercial corridors and possibly other parts of the state, such as St. Cloud, Duluth and Rochester, Rybak said.

The announcement of the Economic Response Fund comes two days after more than 60 of Minnesota’s top CEOs signed a letter calling for an “immediate de-escalation” of violence in the state after a federal agent shot and killed Alex Pretti.

The move marked a shift in messaging from Minnesota’s largest employers, many of which had said little publicly about the surge of immigration officials in the state and the killing of Renee Good.

In an interview, Rybak said the two efforts were “completely separate,” though many of the 28 companies that provided seed funding for the grant program were signatories to the letter.

The announcement of the grant initiative did not mention the immigration crackdown, Rybak added, to enable the foundation to act quickly and attract a broad group of donors. The nonprofit is continuing to solicit contributions for the effort online.

“This is definitely a response to the restaurants suffering in this moment,” he said. “Our hope is that first these dollars can go immediately out into the community, and it can also inspire others to step up and take even bolder actions.”

Rybak compared the initiative to the Minneapolis Foundation’s Restore-Rebuild-Reimagine Fund, which collected and distributed $50 million for local communities and businesses in the wake of the pandemic and the murder of George Floyd in 2020.

In the two months since the federal government intensified its immigration enforcement efforts, many small businesses — especially those immigrants own and frequent — have dealt with staffing struggles and plummeting sales as workers and customers stay home in fear of Immigration and Customs Enforcement (ICE) agents detaining them.

Logan, who said two-thirds of the chamber’s members are small businesses, said the organization is banding together with other local groups to offer support and promote resources.

Among them is Meet Minneapolis, the city’s convention and visitors bureau, which launched a new marketing campaign urging people to shop at small businesses.

“If you want your favorite spots to be here tomorrow, continuing to choose them today matters,” said Courtney Ries, Meet Minneapolis’ senior vice president of destination branding and strategy, in a statement.

Several small business owners described hardships before last week’s one-day closing, a protest faith and union leaders conceived to support immigrant communities and demand ICE agents leave the state.

Many considered the act a way to stand in solidarity with immigrant-owned businesses. Some said the decision to shut down meant thousands of dollars in lost revenue.

The Minneapolis Foundation said initial funding for grants came from: Allianz, Allina Health, Andersen Corp., APi Group, Best Buy, Blue Cross and Blue Shield, C.H. Robinson, CHS, Delta Dental, Donaldson, Ecolab, General Mills, HealthPartners, Kraus-Anderson, Land O’Lakes, Medica, Medtronic, Mortenson, Prime Therapeutics, Securian Financial, Sleep Number, SPS Commerce, Target, Tennant Co., Thrivent, the Toro Co., U.S. Bank and Xcel Energy.