SF 4527
Introduction - 94th Legislature (2025 - 2026)
Posted on 04/17/2026 08:40 a.m.
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A bill for an act
relating to economic development; establishing a relief program for small businesses
negatively impacted by federal enforcement activity; requiring a report;
appropriating money.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1. new text begin SMALL BUSINESS RELIEF GRANTS.
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new text begin Subdivision 1. new text end
new text begin Establishment. new text end
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The commissioner of employment and economic
development must establish a relief program for small businesses negatively impacted by
federal enforcement activity between July 1, 2025, and February 28, 2026.
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new text begin Subd. 2. new text end
new text begin Grants to operators. new text end
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(a) Grantees under section 2 are allowed to make subgrants
to operators of privately owned permanent indoor spaces that:
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(1) host retail spaces or food markets;
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(2) have at least 25 tenant businesses that are primarily businesses with fewer than 20
employees; and
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(3) have a cultural emphasis.
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(b) Grants under this subdivision may be made for up to $250,000 per operator. Of that
amount, all but $10,000 of each grant must be used for subgrants from the operator to
businesses that are existing tenants of that operator. These subgrants to tenants:
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(1) must be used primarily for maintaining the operator's existing tenants;
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(2) require that at least 50 percent of the grant be used to forgive the existing tenant's
rent; and
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(3) are subject to the requirements under subdivisions 3 and 4.
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new text begin Subd. 3. new text end
new text begin Eligible businesses. new text end
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To be eligible for a grant under this section, a business
must:
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(1) have primary business operations located in the state of Minnesota;
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(2) be at least 50 percent owned by a resident of the state of Minnesota;
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(3) do business out of a permanent physical location;
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(4) be in good standing with the secretary of state and the Department of Revenue as of
the date the grant agreement is signed;
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(5) be able to demonstrate at least a 20 percent decline in either revenue or sales when
comparing the period of July 1, 2024, through February 28, 2025, and the period of July 1,
2025, through February 28, 2026; and
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(6) employ the equivalent of 50 full-time workers or less.
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new text begin Subd. 4. new text end
new text begin Eligible uses. new text end
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(a) Businesses may use grant funds for the following purposes:
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(1) payroll and contractor payments;
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(2) commercial rent and mortgages;
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(3) utilities payments;
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(4) inventory replacement;
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(5) security upgrades; and
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(6) working capital.
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(b) Grant funds may not be used to refinance debt that existed before December 1, 2025.
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new text begin Subd. 5. new text end
new text begin Grant process. new text end
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(a) The commissioner of employment and economic
development must develop criteria, forms, applications, and reporting requirements for use
by grantees.
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(b) Grants funded under section 2, paragraph (a), clause (1), must be awarded by lottery
after applications are collected over a period of no more than ten calendar days. Grants must
be awarded by October 31, 2026.
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(c) Grants funded under section 2, paragraph (a), clause (2), must be awarded by lottery
after applications are collected over a period of no more than ten calendar days. Grants must
be awarded by July 31, 2026.
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(d) Grants funded under section 2, paragraph (a), clause (3), must be awarded by lottery
after applications are (1) collected over a period of no more than ten calendar days, and (2)
verified to not be from businesses that already received a grant under paragraph (c). Grants
must be awarded by October 31, 2026.
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(e) The minimum grant amount for a business is $5,000 and the maximum grant amount
for a business per location is $25,000. Each entity conducting a lottery may determine the
amount that will be granted to successful applicants, within those limits.
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new text begin Subd. 6. new text end
new text begin Report. new text end
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By December 31, 2026, the commissioner of employment and economic
development must submit a report that details the use of grant funds to the chairs and ranking
minority members of the legislative committees having jurisdiction over economic
development. This report must include data on the number of businesses served and any
evidence of a positive impact on economic development from the grants.
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new text begin EFFECTIVE DATE. new text end
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This section is effective the day following final enactment.
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Sec. 2. new text begin SMALL BUSINESS RELIEF GRANTS; APPROPRIATION.
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(a) $100,000,000 in fiscal year 2026 is appropriated from the general fund to the
commissioner of employment and economic development for small business relief grants
under section 1. Of this amount:
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(1) $....... is for grants to the Minnesota Initiative Foundations to make grants under
section 1 in greater Minnesota. The commissioner must issue a request for proposals to
select these grantees;
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(2) $....... is for grants to nonprofit corporations that meet the criteria under section
116M.18, subdivision 2, and are current certified nonprofit partners, to make grants under
section 1 in the seven-county metropolitan area, as defined under Minnesota Statutes, section
473.121, subdivision 2. The commissioner must select from the approved lenders a list of
those lenders that have the capacity to operate the small business relief grants program; and
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(3) $....... is for grants to nonprofit corporations that have a history of providing technical
assistance, grants, or loans to small businesses, but are not a certified nonprofit partner
under Minnesota Statutes, section 116M.18, subdivision 2, to make grants under section 1
in the seven-county metropolitan area, as defined under Minnesota Statutes, section 473.121,
subdivision 2. The commissioner must issue a request for proposals to select these nonprofit
partners.
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This appropriation is available until June 30, 2028.
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(b) Of the amounts appropriated under paragraph (a), no more than $....... may be used
for the cost of administering grants under this section.
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(c) Of each of the amounts appropriated under paragraph (a):
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(1) at least 30 percent must fund grants under section 1, subdivision 2; and
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(2) at least 30 percent must fund grants under section 1 to businesses that employ the
equivalent of six full-time workers or less.
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new text begin EFFECTIVE DATE. new text end
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This section is effective the day following final enactment.
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