Minneapolis Considers $7M for Small Businesses

- The proposed funding is a direct response to significant revenue losses for small businesses, estimated to be between $10 million and $20 million per week citywide, due to a federal immigration operation. - City officials estimate that immigrant-owned businesses in the city's cultural districts have been the most severely impacted, with some experiencing revenue losses of 80% to 100%. - The $7 million for this small business relief fund would be reallocated from a city fund originally intended for downtown infrastructure and maintenance costs. - The proposal, initially for $5 million, was increased to $7 million and was advanced to a full council vote by the Committee of the Whole on February 17, 2026, with a final vote expected on Thursday of that week. - This city-level financial support is being considered because federal aid has not been offered, and a proposed $10 million state aid package from Governor Tim Walz is not considered sufficient by some council members. - Business owners have reported a severe drop in customers and employees being afraid to come to work, with some businesses seeing sales drop by as much as 90%. - This is not the first time Minneapolis has allocated such an amount; in September 2020, the city announced a $7 million allocation to aid small businesses in their economic recovery following the unrest after George Floyd's killing. - Mayor Jacob Frey has previously cautioned the council about overspending in response to the federal operation and has expressed that the federal government should be responsible for the recovery from damages it has caused.