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HF 5024

African Development Center grant funding provided for forgivable loans to small businesses impacted by Operation Metro Surge, report required, and money appropriated.

2025-2026 Regular Session Introduced by Samakab Hussein and 1 co-sponsor

Provides $3M in forgivable loans through ADC to Minnesota small businesses affected by Operation Metro Surge to stabilize payroll, rent, utilities, and working capital.

Introduction and first reading, referred to Workforce, Labor, and Economic Development Finance and Policy
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Bill Summary · HF 5024

Summary of HF 5024 (2025-2026 Session) – Minnesota

Purpose

HF 5024 authorizes a one-time appropriation to provide forgivable loans through the African Development Center (ADC) to small businesses that suffered financial hardship due to Operation Metro Surge (federal immigration enforcement activities). The bill establishes eligibility criteria, allowable uses, administration rules, reporting requirements, and a sunset for the appropriation.

Key Provisions

  • Funding and Use

    • Appropriation: $3,000,000 from the general fund in fiscal year 2026.
    • Purpose: Grants to the African Development Center to provide forgivable loans to eligible small businesses affected by Operation Metro Surge.
    • Administrative cap: ADC may retain up to 5% of the appropriation for administrative expenses.

  • Forgivable Loan Program (Administered by ADC)

    • Forgivable loans may be forgiven if recipients meet program requirements set by the ADC.
    • Authorized loan uses (to stabilize and sustain operations):
    • Payment of commercial rent or lease obligations
    • Utility expenses
    • Payroll and employee retention costs
    • Replacement of inventory or coverage of revenue losses due to temporary disruptions
    • Other working capital expenses necessary to stabilize and sustain operations

  • Eligibility Criteria for Beneficiaries

    • Business must be a small business operating in Minnesota with 50 or fewer full-time equivalent employees.
    • Must be located in an area directly impacted by Operation Metro Surge activities.
    • Must demonstrate financial losses attributable to the disruption caused by Operation Metro Surge.
    • If the business is located outside the seven-county Metro area, eligibility determination must involve CAIRO (Center for Immigrant and Refugee Rights) and the Immigrant Development Center.

  • Administration and Reporting

    • ADC is responsible for establishing and administering the forgivable loan program.
    • By February 1, 2027, ADC must report to the chairs and ranking minority members of the legislative committees with jurisdiction over economic development finance and policy. The report must include:
    • Number of businesses receiving assistance
    • Geographic distribution of grants or loans
    • Amount of assistance awarded
    • Description of program outcomes and impact on business stabilization and retention

  • Timeline and Sunset

    • This is a one-time appropriation, available until June 30, 2027.
    • Effective date: The act becomes effective the day after final enactment.

Affected Parties

  • Primary: Small businesses in Minnesota (≤50 FTE) impacted by Operation Metro Surge.
  • Administrative entity: African Development Center (ADC), which will:
    • administer the forgivable loan program
    • manage up to 5% of the appropriation for administrative costs
    • report to legislative leaders by Feb 1, 2027
  • Partners for eligibility (non-metropolitan areas): CAIRO and the Immigrant Development Center assist in determining eligibility for eligible businesses outside the seven-county metro area.

Procedural/Timeline Details

  • Introduction/Referral: Referred to the House Committee on Workforce, Labor, and Economic Development Finance and Policy after introduction on 04/20/2026.
  • ** appropriation timing:** Available in fiscal year 2026; one-time and expiring June 30, 2027.
  • Reporting deadline: February 1, 2027, to specified legislative chairs and ranking minority members.
  • Operational window: Program operates within the 2026–2027 period, with an onetime infusion and limited duration.

Practical Impact

  • Provides targeted financial relief to small Minnesota businesses affected by immigration enforcement activities.
  • Enables stabilization of payroll, rent, utilities, inventory, and other working capital needs during disruptions.
  • Creates a measurable data trail for policymakers on who was helped, where, and with what effects.
  • Encourages collaboration with immigrant-focused organizations for eligibility in non-Metro areas.

If you’d like, I can add a brief comparison to similar relief programs or outline potential oversight considerations for lawmakers.

Compiled from official sources — confirm details with the bill’s official record.

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