Minneapolis Foundation opens $4 million small-business grant program aimed at recent disruption-related revenue losses
Grant fund targets short-term stabilization for small employers across Minnesota
The Minneapolis Foundation has opened applications for a $4 million small-business grant program designed to help employers facing operational disruptions in recent weeks, including reduced revenue, workforce challenges, temporary closures, and heightened safety and security concerns. Grants are expected to be awarded on a rolling basis and distributed quickly as funds allow.
The program, called the Economic Response Fund, is structured as a pooled community fund supported by contributions from more than 35 Minnesota companies and individual donors. The foundation said the $4 million will be distributed in the coming weeks, with funding directed through a network of nonprofit partners that have experience providing small-business support.
Grant size, eligibility and allowable uses
Individual grants are slated to range from $2,500 to $10,000, with award levels tied to demonstrated need and the availability of remaining funds. Eligible applicants are small businesses with up to 40 employees. The program is open to businesses that are currently operating, as well as those that are temporarily or permanently closed due to recent disruptions.
The foundation’s published guidelines describe the grants as flexible and oriented toward short-term stabilization. Allowable uses include a wide range of business expenses, including payroll, occupancy costs, and immediate steps needed to address safety concerns.
- Payroll or contractor payments
- Rent or mortgage for business space
- Utilities and insurance-related costs
- Inventory replacement and repairs
- Security, safety-related costs, or temporary relocation
- Legal assistance or translation help
- Short-term revenue-loss coverage tied to recent disruptions
How grant decisions will be made
Rather than issuing awards directly, the Minneapolis Foundation is allocating the resources to seven nonprofit organizations that will review applications and make funding decisions. The foundation said these partner groups have “deep experience” supporting small businesses and are positioned to move money quickly to the communities experiencing the most significant disruptions.
The partner organizations listed to administer grants are:
- African Development Center
- Lake Street Council
- Latino Economic Development Center
- LISC MN
- Neighborhood Development Center
- PFund Foundation
- West Bank Business Association
Context: emergency relief amid broader community stabilization efforts
The opening of the Economic Response Fund follows other recent local relief efforts tied to the region’s disruptions from intensified federal immigration enforcement activity. In early February, the Minneapolis Foundation announced $830,000 in grants to seven organizations focused on basic needs such as food and housing assistance during the same period. Those awards included support for food shelves, rental and utility assistance, transportation, staffing, and security enhancements.
The Economic Response Fund is intended to function as a short-term stabilization tool for small businesses, while parallel emergency grants have focused on household needs such as food access and housing stability.
Applications for the small-business grants will be accepted until all available funding has been distributed, the foundation said.