Bloomington is steering roughly $400,000 in local economic-development funds into a new small-business assistance program that aims to keep vulnerable storefronts from going dark after recent federal immigration enforcement. The program offers one-time grants of up to $10,000 for brick-and-mortar shops that saw steep drops in foot traffic. Applications opened last Tuesday and will stay open on a rolling basis through April 20, or until the pot of money is gone. City officials say the grants are designed to cover about two months of rent or mortgage payments for qualifying businesses.
Local owners sound the alarm
For some owners, the hit has been brutal and immediate. In an interview with KSTP, Leslie Diaz, manager of Luro Boots in Bloomington, said the store went from busy weekends of about $10,000 in sales to bringing in barely $200 in January. Mayor Tim Busse called small businesses “the lifeblood of Bloomington” and said applicants must show how they were affected by Operation Metro Surge when they apply. According to KSTP, the program had already drawn dozens of applications in its first week.
How the grant works
The Small Business Assistance Grant Program is being run by the Bloomington Port Authority in partnership with NextStage. It will provide a one-time award equal to two months of rent or mortgage, capped at $10,000 per eligible location, per the city. To qualify, a business must have a brick-and-mortar location in Bloomington, fewer than 50 full-time-equivalent employees as of Dec. 31, 2025, and at least six months in operation. Applicants also have to document a significant revenue loss tied to recent immigration enforcement. Program guidelines and the online application are posted on the City of Bloomington website.
Why did the city acted
Officials say the move is a direct response to sharp drops in foot traffic linked to Operation Metro Surge and to urgent calls from business owners for help to make rent and keep staff. At the state level, Gov. Tim Walz has floated a separate $10 million relief package for Minnesota businesses affected by the surge, signaling a broader recovery push, as reported by MPR News. Bloomington leaders have stressed that the city’s $400,000 contribution comes from existing economic-development funds, not new taxes.
Who can apply and what is required
Applicants must submit lease or mortgage documents, a recent federal business tax return, and proof of lost revenue such as sales-tax reports, merchant statements or point-of-sale records, according to the City of Bloomington. They also need to provide payroll filings or other records showing fewer than 50 full-time-equivalent employees as of the end of 2025. Awards are processed on a rolling basis and can be paid directly to landlords or issued as reimbursements.
Local response so far
KSTP reported that 46 businesses applied in the program’s first week, and owners said a $10,000 grant would buy them precious time to cover rent or payroll. Luro Boots manager Leslie Diaz urged customers to “support local Hispanic businesses,” adding that the grant would “help us a lot,” according to KSTP.
The city is also hosting “Bloom & Grow” clinics throughout March to help owners with applications, and the Business Assistance team can be reached at 952-563-4706 for more information.
