The Hennepin County Board approved two agreements today that invest $4.22 million to leverage upward of $16 million and create new sources of capital for small businesses.
In Hennepin County, businesses with less than 100 employees represent 95% of total businesses.
The funding launches a new Hennepin County strategy to address the capital needs of under resourced entrepreneurs and reduce disparities in the county’s small business ecosystem.
The new funds are expected to support capital needs for approximately 120 underserved businesses in Hennepin County and generate approximately $20 million in leveraged investment in coming years.
The agreements with NextStage, a nonprofit community-based lender, reflect two new small business financing strategies:
- $1.1 million to seed a low-barrier capital fund designed to flexibly meet the needs of a variety of startups and established businesses, including contractors, who are underserved by traditional lending.
- $3.12 million to launch an innovative new source of capital designed to help business owners buy and improve their commercial space.
“Our investments in small businesses as a county have come a long way in recent years,” said Board Chair Irene Fernando. “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.”
“This is so exciting. This is one of the biggest barriers I hear new businesses talking about – access to capital,” said Commissioner Debbie Goettel, District 5. “This funding will help small businesses stay and grow in their communities.”
These new capital funds continue Hennepin County’s extensive programs and resources for small businesses and entrepreneurs, such as Elevate Hennepin. Originally developed as a response to the pandemic, Elevate Hennepin has grown to become an essential platform for a wide range of businesses, providing access to customized, professional resources that support business owners in every stage of development.
By investing in business owners, Hennepin County is building a foundation to create a more inclusive and thriving economy that strengthens communities.
