Local businesses are facing significant challenges due to Operation Metro Surge, which has heightened the presence of federal immigration agents in the Twin Cities earlier this year. This operation has led many businesses to rethink their operations.
While some establishments are gradually returning to normal, uncertainty lingers for many employees about their return to work. Some businesses are contending with staffing shortages, while others struggle to meet rent payments amid declining revenues.
The Impact on Eden Prairie
Pat Mulqueeny, president of the Eden Prairie Chamber of Commerce, indicated that discussions with local business leaders reveal many do not possess accurate data to gauge the full impact of Operation Metro Surge, especially concerning lost sales and job-related expenses.
Mulqueeny reported that his conversations extended to businesses in Minneapolis and St. Paul, noting that those situated closer to the urban center are feeling the economic repercussions more acutely than their suburban counterparts in Eden Prairie. “It’s reassuring to see that perhaps the effect hasn’t been as severe for us,” he stated, emphasizing the need for a return to normalcy.
During the peak of the immigration enforcement spike, many employees were reluctant to go to work. To combat this, employers have increased efforts to facilitate transport for employees, including providing Uber ride reimbursements for those who felt unsafe traveling to work.
“Most managers genuinely wish to support their staff,” Mulqueeny said, highlighting their commitment to creating a positive work environment and fostering camaraderie within the community.
Aid from County and State Resources
Lily Shaw, Hennepin County’s economic development manager, shared insights about small businesses adapting to new realities since early February. She noted a decline in foot traffic, a hesitance among employees to attend work due to fear, and a marked loss in revenue have led to an increased risk of business closures.
“We’re hearing reports of revenue losses ranging from 30% to 80%, although the impact varies significantly across the county,” Shaw stated.
The Coalition for Safety and Stability, comprising local mayors including Eden Prairie’s Ron Case, released preliminary data suggesting that around 150,000 immigrants have been directly affected by the surge, along with a significant impact on local businesses. Various sectors, including restaurants, markets, and salons, have noted a drastic drop in patronage; some restaurants have even had to close for a month and a half due to staff shortages, incurring substantial food waste costs.
Many businesses are currently behind on rent, with deficits ranging from $15,000 to $45,000. Some owners have taken on debt using credit cards to survive financially. In response, Hennepin County and state agencies are intensifying efforts to assist businesses in recovery, including initiatives through the Elevate Hennepin program and various proposed legislations.
Mulqueeny expressed caution in quantifying the impact of Operation Metro Surge on Eden Prairie businesses, noting the slow recovery process. As companies begin to assess their losses, particularly in revenue, it could significantly affect payroll and rental obligations.
Hennepin County recently launched a grant program aimed at supporting small businesses facing rent challenges. Funded through the Hennepin County Housing and Redevelopment Authority, the initiative includes a $2 million federal grant enabling eligible businesses to apply for one-time grants between $3,000 and $10,000 to assist with rent or mortgage payments.
The county has partnered with NextStage, a nonprofit that provides business consultation and financing, to facilitate the disbursement of these grants. Applications for this financial support closed on March 25, with notifications expected by April 10.
Shaw and Mulqueeny differentiated the current difficulties from the broader challenges posed by the COVID-19 pandemic. Mulqueeny pointed out that while the pandemic’s effects were widespread across all industries, the ramifications of Operation Metro Surge are more localized, significantly impacting sectors such as hospitality, construction, cleaning services, and restaurants.
“COVID-19 affected nearly everyone in some capacity, unlike the current situation which is more nuanced,” Mulqueeny remarked, highlighting that while some sectors remain largely unaffected, others face significant turmoil.
Shaw added that while businesses are coping with unprecedented challenges, they also benefited from community support during the pandemic, noting that some businesses are not experiencing fear over re-opening but rather fear of their workforce’s safety due to the effects of immigration enforcement.
Legislative Efforts and Community Support
The Coalition for Safety and Stability is calling on state legislators to provide support for small businesses in the upcoming 2026 session. The coalition is backing two bills—SF4527 and SF4535—targeting financial assistance for businesses affected by Operation Metro Surge. Each bill has a companion in the House, HF4342 and HF4477, respectively, and they have been scheduled for initial hearings in the Senate Employment Committee.
Mulqueeny noted some businesses question the necessity of government assistance this session, especially amid ongoing discussions surrounding fraud. He acknowledged, however, that even modest grants could be beneficial to some establishments and highlighted the importance of local shopping to sustain community businesses.
In advocating for immigration reform, Mulqueeny highlighted the need for initiatives that create legal pathways for immigrants to work in the U.S., suggesting that programs like work visas could alleviate the labor shortage encountered by local employers.
Shaw explained that the county has adapted its assistance programs to better suit the needs of businesses, dispatching advisors into communities to help business owners feel secure in their operations. Hennepin County’s economic development initiatives are strategically aimed at bolstering businesses and fostering resilience, particularly in regions most negatively impacted.
“Our goal is to reinforce the commercial corridors and cultural business districts that have faced considerable disruption,” Shaw noted. “We seek to ensure that immigrant-owned businesses and those vital to their communities receive stable support moving forward.
