Economic Response Grants Back 900+ Small Businesses

Across Minnesota, hair salons, bakeries, childcare providers, and service businesses are still recovering after the disruptions of Operation Metro Surge.

Hundreds of those businesses have now received emergency financial support through the Economic Response Fund, a rapid-response effort led by the Minneapolis Foundation to help small businesses stay afloat and keep contributing to the regional economy.

As of early May, the fund’s nonprofit partners have distributed $4 million in grants to 901 businesses statewide. Grants ranging from $2,500 to $10,000 are helping business owners cover urgent expenses tied to revenue loss, workforce disruptions, temporary closures, and safety or security concerns.

“We’ve worked quickly to bring together corporate leaders, nonprofit partners, and generous Minnesotans to move resources where they’re needed most,” said R.T. Rybak, President and CEO of the Minneapolis Foundation. “We are grateful to the partners that acted early to support this work and encouraged to see more companies recognizing the urgency and scale of the need.”

While much-needed, resources raised through the Economic Response Fund come nowhere close to meeting statewide needs. The City of Minneapolis alone has estimated the economic impact of Operation Metro Surge at over $200 million.

Small businesses in 37 counties and 95 cities statewide are recovering with help from the Economic Response Fund.

2,500 Applications in Three Weeks
Launched on February 11, the Economic Response Fund was seeded with $4 million in contributions from three dozen Minnesota companies and individual donors.

The fund received 2,500 applications in just three weeks, reflecting the widespread economic impact on entrepreneurs and neighborhood businesses across Minnesota.

While the application period has ended, donations continue to flow in from businesses, Minneapolis Foundation fundholders, and generous people across the country. An additional $1.8 million is currently being distributed to businesses from the existing applicant pool.

To move resources quickly and equitably, the Minneapolis Foundation partnered with seven nonprofit organizations with deep experience supporting small businesses. These organizations have distributed grant funding directly to eligible businesses.

The Impact of a Hard Winter
After a winter marked by fear and disruption—plunging foot traffic, workers sheltering at home, and widespread temporary closures or reduced hours—many businesses are still operating on the edge. Many grant applicants reported drawing down savings, taking on debt, or falling behind on payments.  

In St. Paul, Premier Health Chiropractic was among the small businesses hit hard. “We not only experienced a decline in the number of patients and collections, but also had our heat stop working in the dead of winter,” said Dr. Joshua Castillo. To stay open, the clinic had to purchase new HVAC equipment—an unexpected financial burden that an Economic Response grant helped relieve. “Without this grant, it would have made it increasingly more difficult to pay off credit debt, as we did not have the finances at the time to pay for it, so we took on more debt,” he said. 

“During Operation Metro Surge, we faced one of the most difficult moments since opening our doors,” said chef Cristian De Leon of El Sazón, a family-owned restaurant in Minneapolis. “Fear of going out, uncertainty, and a decline in customers severely affected the business’s cash flow. Like many small restaurants, we continued to struggle daily with rising costs of food, rent, utilities, and operations, while trying to maintain jobs and stability for our team.” 

An Economic Response grant helped El Sazón cover essential operating expenses such as utilities, payroll, inventory, and other necessary costs to keep the restaurant running. “That support allowed us to continue serving our local community and avoid making even more difficult decisions during a time of great uncertainty,” De Leon said. 

Impacted businesses range from florist shops to clothing stores, restaurants, and bakeries. Floreria Yare, Novedades Krystal, Panaderia San Miguel, and El Sazón are just a few. After this winter’s disruptions, “I know firsthand how challenging and stressful it can be to keep operations running, support employees, pay bills, and continue serving the community when unexpected situations arise,” said Jorge Olivares Cardona, owner of Brother’s Taqueria in New Brighton.

Supporting Long-Term Recovery Together
The Economic Response Fund is part of a broader network of community-led efforts supporting Minnesotans amid the continuing impacts of Operation Metro Surge. At the Minneapolis Foundation, these include the Salt Cure Restaurant Recovery Fund, spearheaded by local food writer Stephanie March and others in the hospitality industry, which has raised and distributed nearly $1.5 million to more than 200 restaurants. The Foundation has also updated the focus of its annual Economic Mobility grant program for nonprofits, which will distribute roughly $2 million in the coming weeks to organizations that support small businesses. 

“For years, we’ve invested in organizations that strengthen entrepreneurship and the local economy,” said Jo-Anne Stately, Senior Vice President of Impact at the Minneapolis Foundation. “Those relationships have allowed us to pivot quickly in response to today’s urgent needs.” 

Impact by the Numbers
As of May 8, 2026 

• Total funds awarded
  $4 million 
• Businesses supported
  901 
• Grant range
  $2,500–$10,000 
• Additional funding currently being distributed
  $1.8 million 
• Communities supported
  95 cities and 37 counties statewide 
• Geographic distribution
  82% Twin Cities metro, 18% Greater Minnesota 

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The Minneapolis Foundation continues to accept contributions to the Economic Response Fund from companies and individual donors. Three ways to contribute: 

• Make a credit card donation. 
• Mail checks to the Minneapolis Foundation, 800 IDS Center, 80 S 8th Street, Minneapolis, MN 55402. The memo line should note the Economic Response Fund.
• For corporate contributions, contact Teresa Skaar at tskaar@mplsfoundation.org.