Minnesota Governor Tim Walz on Thursday proposed a $10 million one-time emergency relief package to assist small businesses, which he said were financially affected during the federal “surge” in the state, as Border Czar Tom Homan announced the operation will be ending.
In a plan Walz said he will include in his 2026 legislative session package, the money would be administered through the Minnesota Department of Employment and Economic Development, or DEED, and distributed as partially forgivable loans ranging from $2,500 to $25,000. Eligible businesses would have to show substantial revenue losses during specific dates tied to the surge, according to the Governor Walz’s office.
“The campaign of retribution by the federal administration has been more than a short-term disruption; it has inflicted long-term damage on Minnesota communities,” Walz said in the announcement. He said the state’s goal is to stabilize businesses, protect jobs, and help communities recover, warning that “recovery will not happen overnight.”
DEED Commissioner Matt Varilek said that while the economic impact of the situation has not been as visible as the human toll, which has been reported in the news, it has nonetheless been severe, particularly on small businesses that may not have the capital reserves to withstand such disruptions.
Varilek also said that he is encouraging business partners to temporarily waive or discount fees for those services that are used by Minnesota businesses that are being impacted by the surge.
Henry Garnica, who owns CentroMex Supermarket in East St. Paul, said that while he believes that the past few months have been among the toughest of his business life, he also believes that such loans would be beneficial in keeping people on payroll, as opposed to shutting down.
Details of those who are being impacted by the federal operation were not announced on Thursday. Walz’s office said that the plan is based on recent efforts to reach out to business owners, including a stop earlier in the week at Malcolm Yards.
Walz also urged Minnesotans to support neighborhood stores during February’s Shop Local Month and the “Shop Local, Stand Together” initiative.
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