MINNEAPOLIS 鈥� Gov. Tim Walz announced $33 million for small businesses across Minnesota during a roundtable at the University of Minnesota on Tuesday, July 15.
Roughly 200 small businesses across the state are set to receive a share of $33 million 鈥� the second rollout of the federally funded $97 million . The roundtable, held Tuesday at the McNamara Alumni Center, featured several small business owners and Department of Employment and Economic Development Commissioner Matt Varilek.
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鈥淲e punch way above our weight with the number of Fortune 500 companies,鈥� Walz said. 鈥淏ut that鈥檚 a piece, and a very small piece. When it really comes down to it, it鈥檚 the entrepreneurs 鈥� It鈥檚 the small business folks. These are the folks that are the risk takers. These are the visionaries, and they are the job creators.鈥�
The state received the first $29.5 million in 2022 when the U.S. Department of the Treasury approved the $97 million for small businesses; its continued rollout is expected to span several years. The first disbursement went to 160 small businesses in 44 cities across the state 鈥� 46 of those businesses in Greater Minnesota receiving about $7.5 million, according to DEED.
Lori Zook, CFO for Riverland Community Health Center in St. Paul, a recipient of the first pot of money, said that before the credits, her center was 鈥渞unning out of runway.鈥�
鈥淲e did not recover well after COVID,鈥� she said. 鈥淪o this program ... allowed us to rehire the appropriate staff. We鈥檝e now been able to increase our services; along with family medicine, dental and behavioral health, we now offer maternal fetal medicine, optometry.鈥�
Walz said Tuesday that the state isn鈥檛 aware of any major changes in the small business credit funding coming from the federal government, but said 鈥渨e do need to be concerned.鈥� He said he was briefed Tuesday morning on the potential costs to the state and counties from President Donald Trump鈥檚 鈥渂ig, beautiful bill,鈥� signed July 4.
鈥淭he cost of just doing the paperwork to meet the requirements in that bill ... to get people off Medicaid, to shrink our numbers, is estimated in Minnesota about $150 million 鈥� that鈥檚 not the loss of Medicaid dollars,鈥� Walz said. 鈥淚t is a deep concern. This is, as we heard, the second tranche going out. There is a piece of this left of roughly the $33 million or so that I do think we need to be concerned with. At this point in time, though, we have no indication that they鈥檙e touching this.鈥�
Walz said a second special session for the Minnesota Legislature may be needed to address federal funding shifts, but at this point, it鈥檚 鈥減remature.鈥� He said Minnesota is in a 鈥渟trong financial position,鈥� with a rainy day fund holding roughly $3 billion.
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The state can 鈥渨eather a bit of a storm with our rainy day funds, but not to the extent of billions of dollars in certain programs,鈥� he said.
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