Business owners in Minneapolis and across Minnesota say they’re struggling because of a recent surge in immigration enforcement by U.S. Immigration and Customs Enforcement (ICE). At places like the popular Market at Malcolm Yard food hall, restaurants and shops that used to be busy now see far fewer customers. Some say their sales have dropped by 50% to 80% compared with normal business — a loss that could threaten their ability to stay open.
Owners describe a stark change. One restaurant owner explained to Minnesota Governor Tim Walz that the lively atmosphere has turned quiet and sad as people stay away, worried about federal raids and arrests. This fear has affected not just restaurants but many small businesses in Minneapolis’ and St. Paul’s neighborhoods that rely on regular foot traffic.
City officials have tried to measure the economic toll. Minneapolis estimates businesses there have already lost about $100 million because of the drop in customers and the slow business climate caused by the enforcement surge. That figure doesn’t yet include the surrounding suburbs or other cities, but state officials say losses could be much higher when those are counted too.
Business owners are now asking for help. Many say basic costs that businesses must pay — like sales tax, property tax, rent, utility bills and licensing fees — are piling up while their income has fallen sharply. One restaurant owner told Walz that if they have to keep paying normal taxes and fees, many local businesses won’t be able to cover basic bills like rent or electricity.
Governor Walz acknowledges the problem and says he’s listening to business owners’ concerns. He has said he expects lawmakers to look at possible financial assistance when the Minnesota Legislature meets again soon. Walz also said he would consider actions he can take on his own through executive orders. He stressed that helping businesses — especially small ones — is a priority and that officials will review every idea they can to support them.
Walz and his team haven’t yet decided exactly what form help might take. But suggestions from business owners include things like temporary tax relief or deferrals of payments so businesses don’t face huge bills when they already have less income. Walz said the legislature could weigh these options, and he wants to see what proposals are brought forward.
Business owners also reminded the governor that even if the federal enforcement activity slows down soon, the economic effects won’t disappear right away. Some say it could take three to six months for small business revenues to recover, even after the enforcement surge ends. That’s because customers need time to feel comfortable returning, and owners need time to rebuild their finances after weeks of lost sales.
The concern over the economic impact comes as the federal ICE operation — known as Operation Metro Surge — continues in Minnesota. Thousands of federal agents have been deployed to the Minneapolis‑St. Paul region, and lawmakers, community leaders and business owners have criticized the scale and effects of these actions. Many immigrant residents are staying home out of fear of detention or arrest, which in turn means fewer customers for the local businesses they would normally support. (Note: details about the broader surge and reactions are covered in other reporting, but aren’t part of the original story you linked.)
Business owners who spoke at the press event with Walz stressed that Minnesota is home to many immigrant‑owned and immigrant‑served businesses. They warned that if the economic damage continues, some of these businesses could close permanently, hurting neighborhoods and the larger local economy.
In summary, the situation has pushed local business owners to appeal to state leaders for help. Gov. Walz says he understands the seriousness of the problem and that lawmakers will consider aid when they return to session. But for now, many small businesses are waiting to see what support might actually become available to help them survive the financial strain caused by the ongoing enforcement surge.
