Minneapolis nonprofit creates fund to help businesses impacted by Operation Metro Surge
The financial fallout from U.S. Immigration and Customs Enforcement operations is a costly one.
City officials in Minneapolis estimate the impact to be $203 million for January alone. That includes tens of millions of dollars in lost wages for people afraid to go to work and revenue losses for businesses.
A traditional afternoon treat of tea and baked sweets is one of the highlights at Albi Kitchen, a Somali cafe in the Loring Park neighborhood.
Owner Fardowsa Sheik Ali just wishes more people were willing stop in and try it.
"It's very slow," she said. "A lot of customers, they're scared to come here."
She estimates business has dropped 70% percent in recent months due to the ICE surge. She added that two of her staff members missed work over concerns ICE might detain them. Her business is also located near a former Somali daycare, leading to harassment from people angry about fraud.
"It's a lot of stress to be honest," she said.
Her story is echoed across the Twin Cities and beyond. Businesses are losing foot traffic, changing their hours or closing entirely.
While the city will offer $1 million dollars in rent assistance, Minneapolis Mayor Jacob Frey balked at a council proposal to allocate $5 million in city funds for small business relief.
"This has been an emergency caused by the federal government and so it's all the more important that they also participate in the recovery from the damage they themselves have caused," Frey said on Friday.
One nonprofit ready to assist is the Minneapolis Foundation. It created the Economic Response Fund to distribute $4 million in grants to businesses that faced disruptions statewide. Those who apply could get up to between $2,500 to $10,000.
R.T. Ryback, the foundation's president and CEO, said, "We recognize the needs are much greater and hope that launching this fund will spur additional investment from the business community."
The grants can be used to cover payroll, rent, utilities, revenue loss and more. A spokesperson for the foundation told WCCO there have been 400 applications since the Economic Response Fund launched earlier this week.
Sheik Ali said she plans to sign up as well.
"Anything can help. It doesn't matter if it's small or big," she said.
While the past few months have been tough, she wanted to thank those living in the neighborhood for their continued support. It helps give her hope for the future.
"I want to see the city be normal again," Sheik Ali said.
The Neighborhood Development Center is one of seven organizations helping the Minneapolis Foundation distribute the grants. In a statement, the organization told WCCO that some of its entrepreneurs saw revenues decline between 50% and 100%, with money losses at $2000 - $70,000.
"For businesses operating on thin margins, which many are, this level of sustained loss creates immediate risk of closure, temporary or not. Restaurants and other highly vulnerable industries are especially at risk," an NDC spokesperson said. "We are grateful to the Minneapolis Foundation for administering the Economic Response Fund and to our fellow community partners for their sustained collaboration and dedication."
To learn more and apply for the Economic Response Fund, click here.
