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 When lifelong friends Xiong Xiong and Xiong Thao started X2 Pastries in 2017, they had no plans to open a bakery; they were only looking for supplemental income.
For years, Xiong and Xiong spent their weekdays working full-time jobs and their weekends selling baked goods at farmer’s markets across the Twin Cities metro, where their banana bread, sourdough loaves, and macarons quickly became hits among market goers.
With their quickly growing popularity came the need for a larger workspace. In 2021, Xiong and Xiong moved their baking operations from a home kitchen to a shared commercial kitchen. But even this was not enough to meet soaring demand.
By 2023, the business partners had left their full-time jobs to focus on growing X2, and they decided that it was time to find a permanent home to open their own bakery.
After securing a 504 loan from the Small Business Administration (SBA), Xiong and Xiong found the perfect commercial building for sale on St. Clair Avenue in Saint Paul. They eventually contacted Minnesota Consortium of Community Developers (MCCD) in search of the final gap funding needed to make the purchase.
“The real challenge at this time,” according to Xiong Xiong, “was the interest rates.” Xiong and Xiong had spoken with several lenders before approaching MCCD, but they were often facing interest as high as 9%. Working closely with Trish DeAnda, MCCD’s Chief Financial Officer, X2 Pastries applied for a $230,000 gap loan from MCCD, with a rate which Xiong Xiong recalls was “even lower than what we were originally looking for.” The loan was approved in November 2024, and by that December the business partners closed on the purchase of their first commercial property.
Xiong and Xiong are moving quickly to renovate the property, which was previously a yoga studio, into their dream bakery. The space will include a retail section for customers to browse through and purchase baked goods that were challenging or impossible to sell at farmer’s markets, especially full cakes. “Now,” Xiong Thao says, “we get to be more creative with what we make and sell.”
The official brick and mortar X2 Pastries is set to open in July 2025, and they are excited to be a community-serving bakery in the Macalester-Groveland neighborhood. Stay tuned for details on their official opening date on X2's Facebook and Instagram.
Does your Saint Paul small business have a great story to tell? Let us know by emailing ped-pio@stpaul.gov and you could be featured in a future newsletter or on social media!
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Saint Paul and Ramsey County are Open to Business
Xiong and Xiong worked with MCCD to get their small business to the next level. Did you know that MCCD also partners with Ramsey County to offer the Open to Business program to all Saint Paul entrepreneurs?
This program provides direct technical assistance and other forms of support to small business owners and entrepreneurs at no cost. All current and aspiring business owners intending to establish, purchase, or improve a business within Ramsey County are eligible to participate.
Through this program, experienced advisors offer FREE, confidential business consulting on a variety of topics including:
- Business plan development
- Feasibility analysis
- Cash flow and financing projections
- Marketing planning and material preparation
- City and state licensing and regulatory assistance
- Loan packaging and other assistance in obtaining financing
Drop-in sessions are offered every month at three Saint Paul Public Library locations:
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Stay up-to-date on construction and road closure information
City of Saint Paul Public Works, MnDOT, Ramsey County, Metro Transit, Saint Paul Regional Water Services, and utility companies are all working in various areas throughout Saint Paul this construction season. Some of the larger Saint Paul Public Works projects in the downtown include: Minnesota Street, Robert Street, Kellogg/3rd Street Bridge, and the Capital City Bikeway on Kellogg Boulevard.
The first Common Cent Sales Tax project on Grand Avenue is already underway between Fairview Avenue and Snelling Avenue. All businesses are open during construction and there is parking on the side streets. For more information, visit stpaul.gov/GrandAvenue.
To get in, out, and around Saint Paul this construction season, plan ahead. and use the city’s Road Closure Map (and list) at www.stpaul.gov/roadclosures.
Stay up to date with Public Works construction by signing up for project specific alerts at www.stpaul.gov/construction (the email sign-up is at the bottom of each project page).
Required workplace poster: Employee Rights Notification
The Earned Sick and Safe Time (ESST), Minimum Wage, and Wage Theft ordinances require that employers give employees notice about their rights. Employers must display this notice in English and any other languages as needed. HREEO has created this poster to help employers to meet this requirement. View the poster in English, Hmong, Spanish, Somali, and Karen.
Adult-use cannabis updates
Cannabis license lottery to open June 5
The Office of Cannabis Management announced in early May that the lotteries for social equity and general applicants for cannabis cultivator, cannabis manufacturer, cannabis mezzobusinesses, and social equity applicant retailer license will open on Thursday, June 5. The lottery for general retailer license will open later this summer. Selection of the lotteries will be available for viewing on OCM’s YouTube page on June 5.
For cannabis businesses that receive licenses via the lottery, the next step will be for the city to provide a zoning review. The State will notify the City of Saint Paul through their portal that a license has been approved, which will trigger the city review process. If you have a retail license, you must also register your business with the City. The registration of a retail business happens outside of the State portal. If you have questions on the process, please contact cannabis@stpaul.gov.
Adult-use cannabis rules finalized
The rules governing Minnesota’s adult-use cannabis market were officially approved on April 14 and published on the State Register. This is the final step to make these rules official and also allows the state to begin issuing business licenses to applicants who have completed all necessary steps to the application process. If you have already applied for a cannabis business license, the Office of Cannabis Management will be following up with applicants directly.
The rules governing Minnesota’s adult-use cannabis market were officially approved on April 14 and published on the State Register. This is the final step to make these rules official and also allows the state to begin issuing business licenses to applicants who have completed all necessary steps to the application process. If you have already applied for a cannabis business license, the Office of Cannabis Management will be following up with applicants directly.
If you are interested in exploring a cannabis license, the chart below provides a step by step guide to applying for a cannabis license with the State of Minnesota.
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Get ready for Round 2 of the MN PROMISE Act
The MN PROMISE Act is a state-funded small business revitalization program that provides loans and grants to help small businesses grow and thrive. The second round of the grant program is coming soon! Check out the Round 2 website to stay updated on important changes, eligibility details, and documents you can start preparing now and be sure to sign up for the newsletter to receive timely updates on future funding rounds.
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Applications are open for Plan It! fall cohort
ThePlan It! training class from the Neighborhood Development Center (NDC) is for entrepreneurs
interested in opening a for-profit business venture. Whether you’re just starting your business or you’re looking to grow, Plan It! is here to support you. Both in-person and virtual options are available. Applications close on Friday, June 27. Space is limited, so apply now!
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Build your credit with the Neighborhood Development Center
Credit UP! (CUP!) from the Neighborhood Development Center (NDC) and Model Cities is a credit building program offering financial education and coaching so entrepreneurs can build or rebuild their credit history. The upcoming two-part CUP! workshop can help you learn credit basics and money management, and may help you become eligible for NDC's CUP! loan program. Classes will be held on May 13 and 20 from 5:30 - 7 p.m. at NDC's offices (625 University Avenue). Space is limited — register today.
Free QuickBooks Online training from WomenVenture
This free WomenVenture training program is designed to empower small business owners with the key fundamental skills to get set-up in QuickBooks online. Through each of the three sessions, learn how to create an account, navigate the platform, learn the basics of expense categorization, reconciliation, and gain confidence to manage your finances. Sessions will be held online from 6 - 8 p.m. on June 4, 11, and 18. Sign up today.
LEDC launches lending promotion to support small businesses
For a limited time, the Latino Economic Development Center (LEDC) is offering loans of up to $25,000 at a low 3.5% interest rate to support small businesses needing working capital. To be eligible, businesses must have three or more years of stable operations, a minimum annual revenue of $200,000 and a minimum credit score of 640. Loans are subject to credit approval, underwriting guidelines, and availability of funds. Learn more.
Strengthen your cybersecurity with Metro State’s free Cyber Clinic
Metro State University’s Cyber Clinic partners with small businesses to enhance their cybersecurity posture through hands-on, community-centered support. The trained cybersecurity students, supervised by experienced faculty, provide services such as risk assessments, policy reviews, and awareness training — all at no cost. To sign up for your free consultation, submit the client intake form or email CyberClinic@metrostate.edu.
Prep your AC for summer with free smart thermostats
Xcel Energy commercial customers in Saint Paul may be eligible for free ecobee Enhanced smart thermostats and free installation from Center for Energy and Environment (CEE). Smart thermostats allow you to monitor your business’s AC remotely and adjust multiple thermostats from your smartphone. Plus, you’ll earn annual bill credits for each thermostat installed through the Xcel Energy AC Rewards program. Request your free installation at mncee.org/thermostats.
Request a workplace safety consultation visit
The Minnesota Department of Labor and Industry offers no-cost on-site safety and health consultations. Employers can find out about potential hazards, improve their safety management systems, and even apply for a safety grant of up to $10,000 to abate safety hazards. Request a workplace safety consultation now.
Access financial and technical support from the City of Saint Paul
The City of Saint Paul partners with business support organizations and groups throughout the Twin Cities. If you would like direct business support from our team, the first step is to submit an intake form. Get connected today to learn more about what programs and resources can help you reach your business goals!
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Upcoming events
Friday, May 9
8 a.m. - 3 p.m.
Saint Paul RiverCentre
Join 300 fellow entrepreneurs, small business owners, and staff from Planning and Economic Development (PED) and Human Rights and Equal Economic Opportunity (HREEO) at the St. Paul Area Chamber Small Business Summit and Expo! The event aims to celebrate, educate, connect and showcase small businesses in our region. Stop by to meet City staff and learn about resources for small businesses! Register today.
Tuesday, May 13
9 a.m. - 11 a.m.
WomenVenture
This course from WomenVenture is designed for pre-launch entrepreneurs who want to start smart and stay compliant. This two-hour session is your roadmap through the complex world of startup logistics and business banking. In this class, you’ll gain critical knowledge needed to register your business, navigate permits and licenses, and set your business finances up for success. Cost is $50. Register now.
Tuesday, May 13
2 p.m. - 3 p.m.
Virtual event
The Minnesota Department of Employment and Economic Development (DEED) hosts a monthly meeting for small business owners to have a conversation with business experts and their peers. In May, learn how to use artificial intelligence (AI) safely, avoid common pitfalls, and build custom "10 chats for 10 hats" to simplify business tasks. This session offers clear, real-world strategies small businesses can use right now to save time, think smarter, and stay competitive. Click this link to join the meeting on May 13.
Tuesday, May 13 and Wednesday, May 14
6:30 p.m. - 8:30 p.m.
Virtual event
The City of Saint Paul is preparing amendments to the Traditional Neighborhood (T) Zoning Districts. The T Districts support mixed-use, pedestrian- and transit-oriented development along many of Saint Paul's corridors and neighborhood nodes. Join an info session to get an overview of the zoning study, discuss proposed text amendments, and get your questions answered. Both workshops will provide the same information.
Wednesday, May 14
11:30 a.m. - 1 p.m.
Osborn370
Strengthen the Strong is a networking group with the mission to strengthen changemakers in the Twin Cities by creating a space where new connections, new ideas, and new partnerships can be developed. While the community and connection are endless, the food supply isn't, so RSVP today if you want to enjoy the lunch.
Strengthen the Strong is also partnering with the St. Paul Area Chamber to co-host a happy hour on Wednesday, May 21 from 4 - 6 p.m. Get all the details here.
Wednesday, May 14
11:30 a.m. - 1 p.m.
DoubleTree Saint Paul Downtown
Be part of an insightful conversation with Ryan Nunn, Federal Reserve Bank of Minneapolis, an expert in the labor market and a host of relevant issues facing all businesses and organizations at this moment in time. He’ll share his perspective on the current economic landscape, engage in a dynamic discussion with B Kyle, President and CEO of St. Paul Area Chamber, and take questions from the audience. Register now.
Thursday, May 15
11 a.m. - 12 p.m.
Virtual event
This event, hosted by the East Side Area Business Association (ESABA) will look at the campaign to Keep it Open on Arcade and help small businesses survive the construction. Attendees will also hear from one of the services available more broadly on the East Side through the Saint Paul Regional Water Services working with businesses on lead pipe replacement.
Tuesday, May 20
9 a.m. - 10:30 a.m.
Virtual event
Join the Minnesota Dual-Training Pipeline team for a hands-on workshop that will equip you with essential skillsets and mindsets to leverage everyday AI responsibly. Participants will discover practical AI applications to enhance their daily workflow; identify and avoid common mistakes when working with AI; and apply resources to be able to better communicate effectively and responsibly with AI tools. Register for this free webinar now.
Tuesday, May 20
11 a.m. - 12 p.m.
Virtual event
Don't miss this free training opportunity for all Saint Paul business owners brought to you by Visit Saint Paul. This educational webinar will provide you with everything you need to know about how to “Claim Your Spaces” on the world's largest user-review sites including Google, TripAdvisor. Reserve your spot.
Set up your Destination Uplift account to find more free small business marketing resources and webinars (use code PARTNER2025).
Tuesday, May 20
12 p.m. - 1 p.m.
Virtual event
In this SCORE webinar, learn about the effects tariffs could have on your business and how to prepare for them. Explore various strategies you can adopt, such as diversifying your supply chains, considering domestic sourcing, improving operational efficiency, or adjusting your pricing. Live attendees will receive the slide deck and a link to this webinar recording. Sign up today.
Wednesday, May 21
1 p.m. - 2 p.m.
Neighborhood Development Center
Discover how the Neighborhood Development Center (NDC) Lending Team can help turn your ambitions into achievements and support the growth of your small businesses. Learn about NDC's lending processes and offerings, eligibility requirements, and more. Sessions are held every month and are open to anyone interested in learning more — no RSVP is needed.
Thursday, May 22
3 p.m. - 4:30 p.m.
Virtual event
The Shared Ownership Center @ Nexus is hosting a free business planning webinar series for cooperatives. The May 22 session will dive into the feasibility of converting existing businesses into cooperatives and go over the transition process. By the end of the series, you'll know if the LOCAL Fund is a fit for your team and be ready to start the application process.
Friday, May 30
5 p.m. - 7 p.m.
NewStudio Gallery
Come connect with creative community leaders and get a sneak peak of what's springing up in the Creative Enterprise Zone (CEZ). Meet CEZ board members, hear the results of a recently commissioned CEZ Economic Study, get CEZ program updates on real estate investment and the 100 Trees Initiative, and learn the artist and event line-up for the 2025 Chroma Zone Mural & Art Festival.
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