Economic Development Authority Meeting Date: March 9, 2026
To: Members of the Economic Development Authority
From: Emery John, Program Associate
Scott Wopata, Community Development Director
Title
Consider Resolution Approving Funding to the Latino Economic Development Center (LEDC) for Northfield Designated Fund Within the LEDC’s Latino & Immigrant Business Emergency Relief Fund.
Body
Action Requested:
Staff recommends a motion to approve Resolution Approving Funding to the Latino Economic Development Center (LEDC) for Northfield Designated Fund Within the LEDC’s Latino & Immigrant Business Emergency Relief Fund.
Summary Report:
Since mid-December 2025, federal immigration enforcement action has impacted businesses across Minnesota, including in Northfield. Staff have been working with businesses to understand the scale of distress, including staff shortages, fewer sales, and temporary business closures.
Northfield experienced a steep increase in federal activity since January 1, 2026, with agents stationed from time to time in Northfield’s downtown. Their activity fostered a pervasive fear; fear is bad for business.
The Latino Economic Development Center (“LEDC”) has been providing technical assistance to Northfield’s businesses since 2025, when the EDA began contracting with them. They operate statewide as a Community Development Fiduciary Institution (“CDFI”), meaning they are federally regulated and certified.
LEDC has launched the Latino & Immigrant Business Immediate Relief Fund (“Relief Fund”) in the wake of mass business interruption due to federal immigration enforcement action. LEDC has a variety of funding streams serving different business types and geographic areas. They have administered over half a million dollars since the grant was launched in the last week of January.
While all grant applicants use the same application link, the address of the business directs the LEDC staff to code the application to the appropriate funding source. Thus, if the EDA, through the LEDC, founds a Northfield Relief Fund, the grants will be directed exclusively to Northfield business addresses.
The drafted resolution is written to fund this program with $100,000. Any unspent money by the end of this calendar year will be returned to the EDA.
Staff strongly recommend permitting LEDC to use up to 15% of this funding to provide for the administration, including accounting and bookkeeping, of these grants. The LEDC scales admin costs for the grant dollars used, meaning that if only two grants are given, the LEDC only has admin costs for those two grants. The LEDC is not using the administration fees for anything other than Northfield’s programming.
City Plans & Policies Relevance:
Comprehensive Plan Chapter 4 Strategy 3: Small Business Development, Action 1:
“Partner with existing local business support organizations and evaluate other support opportunities to establish public and private local funding resources for small business.”
Comprehensive Plan Chapter 4 Strategy 3: Small Business Development, Action 3:
“Work with existing and potential partners to provide culturally and linguistically competent and context-sensitive business advisory services for existing and future entrepreneurs.”
Alternative Options:
The EDA can not enact Resolution 2026-002
Financial Impacts:
Staff proposes to allocate this expense to EDA Fund 292 as this specific item was not budgeted in the operating fund for this year and use of reserves would be appropriate from Fund 292 versus the operating fund of 290. The total expense allocated is $100,000.
Any unspent funds will be returned to the EDA after program conclusion currently planned for the end of December of 2026.
Tentative Timelines:
March 9 - Resolution 2026-002 passage
March 13 - Contract finalized and executed
Spring and Fall - LEDC presents to EDA on ongoing contract, including technical assistance and Relief Fund activity
December 31, 2026 - Unused funds remitted to EDA