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The Minneapolis City Council will vote Thursday on whether to create a $7 million relief fund for small businesses that are losing money during the federal immigration operation. 

Council member Jason Chavez said it’s intended as a boost for the many shops and restaurants that are struggling.

“We are seeing businesses in Minneapolis impacted drastically,” Chavez said. “We know that we need to pass this relief.”

The proposal was initially for $5 million, but it was amended upward to $7 million during Tuesday’s meeting of the council’s Committee of the Whole. The committee voted 11-2 to send the measure on to Thursday’s full council meeting.

Last week, the city of Minneapolis released a report on the financial effects of the federal operation. It estimated that restaurant and small business revenue losses total about $81 million in January. 

The council’s resolution proposes taking the $7 million for small business relief from a city fund intended to support downtown infrastructure and maintenance costs. 

Rodrigo Cardoso is a business owner at Mercado Central, a primarily Latino business cooperative on Lake Street. Speaking ahead of Tuesday’s meeting, he said businesses in the building have seen their sales drop about 90 percent. Some have closed, while workers and customers stay home out of fear. 

He said he’s worried about the immediate stressors, like paying rent and making payroll. And beyond that, he said, many of the family-owned businesses are worried about losing wealth for the next generation.

“We’re getting ready, in many cases, to give the opportunity to the second and third generations,” he said. “Our future as a cultural hub, as a community hub, as a gathering place and as cultural ambassadors for the Lake [Street] community is completely at risk.” 

Business advocates compared the financial strain to the early days of the COVID-19 pandemic. Some say this is worse. At that time, the federal government stepped in with aid for businesses. Gov. Tim Walz and Minneapolis Mayor Jacob Frey have 

, but the federal government has not indicated it’ll offer funding. 

 for small businesses. City council member Aurin Chowdhury said that’s welcome — but won’t be enough. 

“That $10 million was missing a zero,” Chowdhury said. 

State money would take months to hit businesses’ bank accounts, too. Council members pushing for the city funding said it would be faster, and it would help business owners stay afloat while waiting for other funding to come through. 

If the council approves the $7 million aid proposal on Thursday, it’ll go to Frey for a signature or veto. 

Frey has warned the council to limit extra spending in response to the federal operation. Last week, he approved a move to put $1 million in city funds into an emergency rent assistance program. But he paired that with a letter to council members cautioning them against overspending. 

“Continuing to draw down limited city resources at this pace will force difficult tradeoffs — higher property taxes, deeper cuts to core services or both,” Frey said. “That is not a sustainable path forward.” 

If the funding passes, the city’s office of Community Planning and Economic Development would oversee that fund and take applications from businesses. 

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Estelle Timar-Wilcox

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The Minneapolis City Council will vote Thursday on a $7 million relief fund for small businesses that are losing money during the federal immigration operation. 

Minneapolis City Council to vote on $7M for small business support

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