Hennepin County is making a notable investment in its small business sector with a significant infusion of capital that is aimed at bolstering the county's economy. In a move to reduce disparities and nourish the growth of under-resourced entrepreneurs, the Hennepin County Board has approved the allocation of $4.22 million to be leveraged into approximately $16 million, as reported by government sources. This funding is part of a new county strategy with the intention of stretching the capital infusion to support around 120 underserved businesses.
Reflecting a conscious step made by the county to cater to a portion of the community that comprises 95% of the county's businesses, those employing less than 100 workers, the capital is designed as a lifeline for the local economy's backbone. The distribution of funds will include two innovative small-business financing strategies. Firstly, a $1.1 million seed will be poured into a low-barrier capital fund that caters flexibly to a variety of startups and established businesses, including contractors, who have found difficulty in securing traditional lending. Additionally, a $3.12 million allocation is destined to kickstart an innovative source of capital that assists owners in purchasing and improving their commercial spaces.
“Our investments in small businesses as a county have come a long way in recent years,” Board Chair Irene Fernando told sources. She emphasized the county's attentiveness to the local business community, affirming, “We have listened to the small businesses and entrepreneurs in our community and are being responsive to their needs. Providing this boost in seed capital will help even the playing field for small businesses in our communities.” Commissioner Debbie Goettel, specifically representing the Fifth District, echoed these sentiments saying, “This is so exciting. This is one of the biggest barriers I hear new businesses talking about – access to capital. This funding will help small businesses stay and grow in their communities.”
The narrative of support for entrepreneurs is not new to the county. These new capital funds build upon an already established history of offering a diverse range of programs and resources dedicated to fostering a competitive and inclusive business environment. Elevate Hennepin stands as a testament to this commitment. Spawned as a pandemic response measure, Elevate Hennepin has since evolved into a paramount platform for business support, extending customized, professional resources to business proprietors at varying stages of their entrepreneurial journeys. It is through such investments that Hennepin County strives to create a more inclusive and prosperous local economy that underpins stronger communities.
