Washington, D.C. — This week, Rep. Dean Phillips sent a letter to Gov. Tim Walz, Speaker of the House Melissa Hortman, and Senate Majority Leader Jeremy Miller calling for the state’s leaders to use the state’s massive surplus to provide aid to the states small business.

The Congressman specifically mentioned as needed targets for aid industries which rely on in-person service or gatherings, including the hospitality, live events, and fitness industries.

“My staff and I are in contact with business owners on an almost daily basis who are taking on massive amounts of debt just to survive yet are still being forced to consider layoffs or even closure. This would have a devastating impact on our communities and stunt the economic recovery now well underway,” Phillips said in the letter sent this week. “As you consider how best to allocate the resources made available by Minnesota’s strong economic recovery and hardworking citizens, I again respectfully request that targeted relief for small businesses be included among your priorities.”

This is the second letter that Phillips has sent state leadership requesting they carve out support for small businesses after sending a similar letter in July.

Minnesota will receive a total of $2.8 billion in federal aid through the State and Local Fiscal Recovery Fund established by the American Rescue Plan, which Dean voted to pass in March. With a projected surplus of $7.7 billion for the state, and a new threat in the rising Omicron variant, the Congressman is calling once again that the economic health of Minnesota’s small businesses be a top priority for the state’s leaders.

Full text of the letter below:

Dear Governor Walz and Legislative Leaders:

With the economic forecast released last week detailing how growth in income, consumer spending, and corporate profits led to the largest surplus in Minnesota history – all during a pandemic – I write to salute you for steering us through one of the most challenging years in our history. With a projected surplus of $7.7 billion, I also write to request once again that the economic health and wellbeing of Minnesota’s small businesses – especially those hit hardest by the COVID-19 pandemic – be a top priority.

As I wrote in July, Minnesota will receive a total of $2.8 billion in federal aid through the State and Local Fiscal Recovery Fund established by the American Rescue Plan, which I proudly supported. At the time, I respectfully requested consideration of a targeted small business relief fund large enough to meet the needs of small businesses across our state. While $64 million was made available for this purpose, demand far outpaced available funds, and many small businesses remain in desperate need of assistance.

This is especially true for those businesses which rely on in-person service or gatherings, including the myriad of businesses that make up our once-thriving hospitality, live events, and fitness industries. My staff and I are in contact with business owners on an almost daily basis who are taking on massive amounts of debt just to survive yet are still being forced to consider layoffs or even closure. This would have a devastating impact on our communities and stunt the economic recovery now well underway.

As you consider how best to allocate the resources made available by Minnesota’s strong economic recovery and hardworking citizens, I again respectfully request that targeted relief for small businesses be included among your priorities. In return, I commit to you that I will continue to make federal relief for these businesses a top priority of mine in Washington, DC, where I am hopeful that we can deliver additional funds on a bipartisan basis in the very near future. This alone would not meet the full need, however, which is why I am hopeful we will align in this effort at the state and federal levels.

This historic surplus also offers a once-in-a-lifetime opportunity to address commonsense Democratic and Republican priorities alike, including childcare, health care, public education, affordable housing, and paid leave – together with targeted tax cuts or rebates, investments in public safety to address the recent spike in brazen criminal activity, shoring up our state’s reserves, and funding our unemployment insurance system’s needs. While there will certainly be no shortage of ideas for how to use this surplus to benefit the most Minnesotans, I have full faith and confidence in your ability to listen to one another, identify common ground, and act in the best interest of our state.

Thank you for your consideration of this request, and for your stewardship of our state at such a challenging time. As always, I stand ready to support you in whatever way I can.

Sincerely,

Dean Phillips
Member of Congress

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