A new $3.5 million grant pool aimed at stabilizing small businesses is now available statewide, offering potential relief to struggling commercial corridors in St. Paul as economic uncertainty grows.

The Minneapolis Foundation this week announced the Economic Response Fund, which will distribute grants through community organizations experienced in small-business support. Funding is intended to help businesses maintain payroll, keep staff on schedule, pay rent and preserve inventory during periods of disruption.

Foundation President and CEO R.T. Rybak said small businesses and their employees are facing “enormous disruptions,” prompting the need for rapid support. The fund is seeded by 28 Minnesota companies, including Target, Best Buy, U.S. Bank and Xcel Energy.

The initiative builds on the foundation’s earlier Restore-Rebuild-Reimagine effort following the COVID-19 pandemic and 2020 civil unrest, which mobilized about $50 million for businesses and communities.

For St. Paul, the funding arrives as many neighborhood businesses — particularly immigrant-owned shops on the East Side and along West 7th — report declining foot traffic and workforce disruptions tied to ongoing federal immigration enforcement activity.

Additional targeted relief is also available. Hmong American Partnership is offering stabilization grants of up to $5,000 for Southeast Asian and immigrant/refugee entrepreneurs, while the Latino Economic Development Center has launched emergency grants for Latino-owned businesses on St. Paul’s East Side affected by recent enforcement activity.

Initial distributions from the Economic Response Fund are expected in the coming weeks, with priority given to areas facing the most urgent need.Find more information and apply for grants at minneapolisfoundation.org,ledcmn.org and hmong.tfaforms.net/69