African Development Center grant funding provided for forgivable loans to small businesses impacted by Operation Metro Surge, report required, and money appropriated.

A bill for an act

relating to economic development; appropriating money for a grant to the African

Development Center to provide forgivable loans to small businesses impacted by

Operation Metro Surge; requiring a report.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.
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APPROPRIATION; AFRICAN DEVELOPMENT CENTER; SMALL

BUSINESS RELIEF.
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(a) $3,000,000 in fiscal year 2026 is appropriated from the general fund to the

commissioner of employment and economic development for a grant to the African

Development Center to provide forgivable loans to eligible small businesses that experienced

financial hardship due to business disruption, closure, or loss of revenue resulting from the

federal immigration enforcement activities known as Operation Metro Surge.

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(b) The African Development Center shall establish and administer a forgivable loan

program to assist eligible small businesses located in communities directly impacted by

Operation Metro Surge. Loans issued under this section may be forgiven if recipients comply

with program requirements established by the African Development Center.

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(c) Forgivable loans awarded under this section may be used for:

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(1) payment of commercial rent or lease obligations;

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(2) utility expenses;

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(3) payroll and employee retention costs;

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(4) replacement of inventory or coverage of revenue losses resulting from temporary

business closures or disruptions; and

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(5) other working capital expenses necessary to stabilize and sustain business operations.

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(d) To be eligible for assistance under this section, a business must:

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(1) be a small business operating in Minnesota with 50 or fewer full-time equivalent

employees;

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(2) be located in an area impacted by Operation Metro Surge immigration enforcement

activities; and

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(3) demonstrate financial losses attributable to the disruption caused by Operation Metro

Surge.

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A business seeking assistance under this section that is located outside the seven-county

metropolitan area must work with CAIRO and the Immigrant Development Center to

determine eligibility.

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(e) The African Development Center may retain up to five percent of the appropriation

for administrative expenses associated with implementing and administering the program.

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(f) By February 1, 2027, the African Development Center must submit a report to the

chairs and ranking minority members of the legislative committees with jurisdiction over

economic development finance and policy. The report must include:

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(1) the number of businesses receiving assistance;

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(2) the geographic distribution of grants or loans;

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(3) the amount of assistance awarded; and

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(4) a description of program outcomes and impacts on business stabilization and retention.

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(g) This appropriation is onetime and available until June 30, 2027.

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EFFECTIVE DATE.

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This section is effective the day following final enactment.

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