A program that aims to help small businesses in rural areas and in other parts of the state would get another two-year funding boost under a bill being considered at the state Capitol.
Legislation sponsored by Sen. Susan Pha, DFL-Brooklyn Park, would renew a $7.4 million “one-time” increase in funding to the Small Business Assistance Partnerships Program that it first received two years ago. That funding was in addition to the $5.45 million in base funding allocated to the program.
In 2023, the Small Business Assistance Partnerships Program contracted with 41 small business development and support organizations across Minnesota.
Pha said that as a small business owner herself, she’s aware of the hurdles they face, and she said the organizations the assistance program works with provide needed support for business owners.
“Investing in small businesses and helping them to be successful and thrive is how we create and maintain a healthy economy,” Pha said.
Of all the businesses in Minnesota, 99.4% are considered small businesses, employing almost half of Minnesota’s workforce, according to the Statistics of U.S. Businesses census.
In 2023, the Small Business Assistance Partnerships program created or maintained 20,625 jobs, assisting 16,471 businesses, 7,463 of which were owned by people in Greater Minnesota, according to the Minnesota Department of Employment and Economic Development (DEED).
Michelle Marotzke, the business development manager and interim executive director at Kandiyohi County Economic Development, said small business development is crucial to the economy and should be a priority, especially in outstate areas.
“Small businesses are the backbone of every rural town,” Marotzke said.
Kandiyohi County Economic Development partnered with the Southwest Initiative Foundation and Rising Tide Capitol to create a program called Elevate Community Business Academy in 2021 using funding from DEED, Marotzke said.
Elevate is a 12 week business education boot camp offered to current and prospective small business owners, according to its website. In 2023, Elevate received an award of $203,500 from the Small Business Assistance Partnerships Program, according to Marotzke.
Marotzke said the program has had a large impact on the Kandiyohi County community, not just by supporting those taking the course, but also providing additional income for the small business owners hired to teach classes.
“Any time when we’re investing in businesses, we know that that’s going to mean an investment back into the state,” Sen. Pha said. “Whether it’s through taxes, or really just through creating jobs.”
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