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Many Minnesota businesses are facing drops in traffic and sales, workforce disruptions, and other pressures. DEED is actively supporting businesses during this time by listening closely to owners, connecting them to resources, and coordinating with local governments, associations, nonprofits and philanthropies to help businesses now and into the future.
Surveys Show Surge Impact on Small Businesses
DEED’s Economic Analysis Team reviewed seven surveys from four organizations that gathered data from approximately 769 respondents. While not statistically valid, the results give a sense of the magnitude of impacts over the past months:
- Affected businesses typically had substantial reductions in traffic and sales
- Businesses experienced temporary closures and reduction in business hours
- Many respondents had workforce concerns as well, including both lack of workers or need to cut hours
- Conditions are resulting in concerns about paying debt, rent, utilities and other costs
- There is a reduction in events and other tourism activity as well.
Governor Launches Campaign to Shop Local
Governor Walz has proclaimed February as Shop Local Month in Minnesota. Through this campaign, DEED and the State of Minnesota are partnering with local governments, economic development organizations, and business associations to promote community-based support for small businesses and connect owners with available resources.
DEED Commissioner Matt Varilek is also working with the private sector to urge a temporary waiver or reduction of fees for services provided to Minnesota businesses impacted by the surge. He has asked private sector partners to consider measures that could help businesses stay open and recover more quickly, emphasizing that fast relief from these fees could be a lifeline for struggling businesses.
This campaign will continue and more details will be forthcoming.
Star Tribune has more
Proposed Small Business Relief Fund
Governor Walz has also proposed a $10 million one-time emergency relief fund aimed at Minnesota businesses that have been impacted by the federal surge.
Under the proposal, one-time funding would be distributed in forgivable loans ranging from $2,500 to $25,000. Eligible businesses must be able to demonstrate substantial revenue loss during specified dates tied to the surge. The funding will be part of the Governor’s 2026 legislative session package and would be administered by DEED. This legislation has not passed, and no funding is currently available.
Learn more
New Small Business Digital Toolbox
DEED’s Office of Small Business and Innovation helps entrepreneurs start, grow and thrive in Minnesota. Our new digital toolbox brings together practical resources to support every stage of your business journey.
DEED also compiled a starting list of resources offering immediate financial relief, business consulting and technical assistance, legal rights and hotline support for Minnesota businesses affected by the federal law enforcement presence in our state.
Learn more
MPLS Foundation Economic Response Fund
Small businesses in Minnesota that have experienced operational disruptions in recent weeks may now apply for financial support through the Economic Relief Fund from the Minneapolis Foundation.
Grants are intended to support businesses over a 30 to 60 day period and will provide funds to address urgent needs such as reduced revenue, workforce disruptions, temporary closures or safety and security concerns.
Small businesses with a maximum of 40 employees and a gross annual revenue of $3 million or less are eligible to apply.
Learn more
Child Care Economic Development Grants Now Open
DEED is accepting Request for Proposals (RFPs) for Child Care Economic Development Grants, awards aimed at expanding access to quality, affordable child care across the state.
A total of $1.425 million in grant funding is available for local governments and nonprofit organizations to support child care businesses through facility improvements, training, employee incentives, licensing assistance and other incentives. Interested parties may request up to $600,000 in state funds for multi-location projects. Single location projects can request up to $300,000.
All applications must be received no later than 4:00 p.m. on March 17.
Learn more
 March Small Business Call - Federal Child Care Credits
Permanent changes to the U.S. federal tax code offer expanded support for child care. These changes provide new opportunities for employers to invest in child care solutions, making quality care more accessible and affordable for working families.
Stephanie Ferguson from the U.S. Chamber of Commerce will join us to breakdown some of these changes and discuss how small business owners may benefit.
Sign up for reminders and access the call
DEED-Supported Child Care Initiative Wins Award
The City of Luverne & Kids Rock! Child Care, a DEED-supported initiative aimed at increasing child care availability in Greater Minnesota, has recently received an innovation award from the Economic Development Association of Minnesota.
Kids Rock! is the first licensed child care facility in Rock County and may one day serve up to 186 children. The center created 27 new jobs when it opened in June 2025. DEED awarded $250,000 to Kids Rock! the City of Luverne to support startup expenses for supplies and equipment needed for licensing.
Learn more
Birthing of Giants Cohort
Birthing of Giants is producing a Minnesota cohort under the leadership of Scott Litman and Dan Mallin, founders of MN Cup. The program will take on 10 to 20 founders whose businesses earn between $5 million to $250 million annually. Participants commit to a two-year regional program with quarterly meetings.
TCB Mag has more
Upcoming Events in 2026
March 2: MN Cup Applications Open
March 4: Paid Leave Compliance Workshop for Employers
March 4: Owatonna Angel Network
March 12: Trailblazer Challenge
March 14: Minnesota Meetup @ SXSW
Startup and Small Business Calendar
Resources for Entrepreneurs
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