SAINT PAUL, Minn. – Today, the House Workforce and Business Development Committee discussed legislation authored by Rep. Julie Sandstede (DFL – Hibbing) to invest $100 million in grants to help small businesses that experienced hardship due to the COVID-19 pandemic. The new Pandemic Relief Grant Program would offer grants up to $25,000 to Minnesota businesses with 50 or fewer employees in sectors hurt the worst during the pandemic.
“As major global conglomerates like did better than ever, our smallest businesses in Minnesota faced a squeeze unlike anything they’ve ever had to experience. Many hung on by a thread, while many more simply couldn’t survive the impossible environment,” Rep. Sandstede said. “Now, businesses are struggling with increased costs and tight labor markets. Despite their ability to be fully open without any COVID-related restrictions, it isn’t an easy path forward for many of our smallest businesses that operate on small margins. This is one solution I’m hopeful we can explore this session as work to ensure our small businesses – the lifeblood of our Main Street economies – can once again succeed and thrive.”
The bill will ensure grant recipients are split equally between the metro area and greater Minnesota. Eligible businesses include food and beverages, personal services, indoor entertainment, fitness and sports centers, and wellness and recreation establishments. Grants would be determined through a lottery process.
Shelly Hanson, President of the Hibbing Chamber of Commerce, testified in support of the legislation.
The bill was laid over for future consideration in a broader piece of workforce and business development legislation. Documents from today’s hearing are available on the committee webpage, and video of the hearing will be available on House Public Information Services’ YouTube channel.