$100M Metro Surge Business Aid Plan Passes MN Senate, Faces Uncertain House Path

ST. PAUL, MN — Small businesses hurt by Operation Metro Surge could qualify for zero-interest loans under a $100 million aid package passed Thursday by the Minnesota Senate.

The legislation, SF 4535, would create a Minnesota business recovery loan program for businesses that lost revenue during increased immigration enforcement in Minnesota beginning Dec. 1, 2025.

The bill still needs approval from the Minnesota House, which is split 67-67 between Republicans and Democrats, before it can be sent to Gov. Tim Walz.

The Senate passed the bill April 30 in a 35-31 vote.

Under the Senate bill, $82 million would go to nonprofit partners to make loans to businesses in the seven-county metro area.

Another $18 million would go to Minnesota Initiative Foundations for loans to businesses in Greater Minnesota.

To qualify, businesses would need to show a revenue loss of more than 30 percent between Dec. 1, 2025, and Feb. 28, 2026, compared with the same period the previous year.

Businesses would also need to operate from a permanent physical commercial location and be in good standing with the state.

Metro businesses with up to $3 million in annual gross receipts could qualify for loans of up to $200,000. Businesses in Greater Minnesota with up to $1.5 million in annual gross receipts could qualify for loans of up to $150,000.

The loans would carry no interest and last no more than 60 months. Borrowers could apply to have up to 60 percent of the loan forgiven after making 24 consecutive on-time payments.

“We came into this session with a mission to support Minnesotans harmed by Operation Metro Surge, the unwarranted invasion of our communities by thousands of federal agents,” Senate Majority Leader Erin Murphy said in a statement.

Murphy said early estimates show $600 million in lost business and $200 million in lost income in Minneapolis and St. Paul alone, along with thousands of jobs lost in hospitality and construction.

The bill also includes $250,000 for the Minnesota Department of Employment and Economic Development to study the statewide economic impact of increased immigration enforcement since Dec. 1, 2025. That report would be due to lawmakers by Feb. 1, 2027.

The Senate vote puts pressure on the evenly divided House, where a companion measure has not yet passed. Murphy urged House Republicans to act on the proposal.

“I only hope the House Republicans stop sitting on their hands and see the simple math behind this legislation,” Murphy said.