Announcing the Hennepin County Small Business Recovery Fund

Announcing the Hennepin County Small Business Recovery Fund

Many small businesses in Hennepin County have experienced significant financial and operational hardship because of the recent federal immigration enforcement surge.

To help mitigate these impacts, the Hennepin County Housing and Redevelopment Authority (HCHRA) is making approximately $2 million available under the Hennepin County Small Business Recovery Fund. These funds are designed to help businesses impacted by the surge overcome short-term financial hurdles, enabling them to remain in business in their communities and to prevent widespread blight in Hennepin County.

Eligible small businesses may receive one-time grants between $3,000 and $10,000 to help cover two months’ business rent or commercial mortgage payments as they navigate reduced foot traffic, temporary closures due to safety concerns, workforce disruptions, and other impacts due to immigration enforcement actions.

The HCHRA has engaged NextStage, a nonprofit community-based lender that provides business advising and small business financing, to provide grant administration services.

All information is subject to change without notice.

Key dates

• Application opens: 4 p.m. Wednesday, March 18, 2026
• Application closes: 4 p.m. Wednesday, March 25, 2026

Who is eligible?

• Locally owned, for-profit businesses with a physical establishment in Hennepin County that experienced significant loss in revenue during the period from December 1, 2025, to February 28, 2026, due to recent immigration enforcement actions (significant loss shall be defined as a 30% drop in gross revenue versus a comparable period).
• Active and good standing with the Minnesota Secretary of State.
• Licensed (if required), in good standing, and not delinquent on property taxes or other obligations (besides rent or mortgage payments).
• Engaged in direct sales and/or services to the public on a transactional basis that relies on customer traffic (examples include restaurants, retail stores, salons, personal care businesses) at the impacted brick and mortar location. Online only businesses and home-based businesses are not eligible.
• An employer of fewer than 50 full-time equivalent (FTE) employees as of 12/31/2025. Grants to businesses with no employees other than an owner as of 12/31/2025 are capped at a maximum of $3,000.
• In revenue operations for at least three (3) months prior to 12/1/2025 with an annual revenue of at least $25,000 and not more than $4 million.

Not eligible

• Home-based businesses; those without a physical establishment.
• Non-profit organizations.
• Corporate chains, multi-state chains, franchises (unless proof of local ownership).
• Businesses within multi-tenant properties with over 250,000 square feet of commercial (non-residential) space.
• Businesses that primarily derive income from
• business-to-business sales, governmental contracts, or recurring contracts/memberships
• passive investments; real estate transactions; property rentals or property management; billboards
• lobbying.