Item Description:
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Neg Agmt PR00007939 with The Minneapolis Foundation to establish and administer a small business employee hardship fund, 12/12/25-12/31/29, NTE $75,000
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Resolution:
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BE IT RESOLVED, that the Executive Director be authorized to negotiate Agreement PR00007939 with The Minneapolis Foundation to establish and administer a small business employee hardship fund serving local businesses and their employees during the period December 12, 2025 through December 31, 2029, with a not to exceed amount of $75,000; that following review and approval by the County Attorney’s Office, the Executive Director be authorized to sign the agreement and related documents on behalf of the Authority; and that the Controller be authorized to disburse funds as directed.
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Background:
Employee hardship funds (EHFs) (also referred to as employee assistance funds, employee resource funds, or employee relief funds), allow income-eligible employees to apply for one-time, limited grants funded by their employer, helping workers maintain stability and stay in the workforce during times of personal crisis. EHFs help employers retain vulnerable workers while boosting resilience and engagement across their entire workforce. These funds also contribute to overall talent retention and recruitment efforts, keys to ongoing success and business growth.
The Minneapolis Foundation has a successful track record of partnering with local businesses to establish and implement customized EHFs in a manner that minimizes the administrative burden on the business. The Minneapolis Foundation manages EHFs on behalf of employers, including accepting and evaluating employee funding applications, issuing grants to eligible employees for qualifying events, and providing quarterly reports to businesses while maintaining employee confidentiality. Since 2006, 13 local companies ranging in size from 200 to over 85,000 employees have partnered with The Minneapolis Foundation to offer customized EHFs to their workers.
Small businesses, those with fewer than 200 employees face significant barriers to establishing EHFs, despite the positive outcomes and the presence of a capable, local nonprofit fund administrator like The Minneapolis Foundation. The up-front investment of time and money required to set up an EHF, including research, coordination, and administrative setup, is a significant hurdle for small businesses with limited capacity and limited human resources staffing.
Agreement PR00007939 with The Minneapolis Foundation establishes a collaborative EHF with a standard set of criteria for employee eligibility, qualifying hardship events, and funding amounts for EHF employee grants. Through this agreement, the Hennepin County Housing and Redevelopment Authority’s (HCHRA) will work with The Minneapolis Foundation to design a collaborative fund that fits the needs of small businesses. While the participating businesses will fund their respective EHFs, the HCHRA investment will cover the costs of initial program set-up and a share of ongoing program administration.
The HCHRA will promote this opportunity to participate in the collaborative EHF to businesses in Hennepin County with fewer than 200 employees. An estimated 15-30 businesses will be selected to participate via an open application. Participating businesses will work directly with The Minneapolis Foundation to set up the EHFs and contribute funds based on their number of employees.
Based on preliminary criteria and parameters, the EHF is projected to serve 15-30 businesses, enabling an estimated 1,500 workers to seek financial support for unforeseen hardship. Over 300 workers are estimated to directly benefit from hardship grants over the agreement term.
Current Request: This request seeks authorization to negotiate Agreement PR00007939 with The Minneapolis Foundation to establish and administer a small business employee hardship fund during the period December 12, 2025, through December 31, 2029 with a not to exceed amount of $75,000.
Impact/Outcomes: Approval of this request will support the ongoing growth and success of an estimated 15-30 small businesses in Hennepin County and provide direct support to an estimated 300 or more workers who experience hardship during their employment with participating businesses. The collaborative employee hardship fund is projected to leverage $350,000 to $430,000 in private funds for workers that experience hardship.
Disparity Domains: This request aligns with Hennepin County disparity elimination efforts in income and employment, by creating a new way for local small businesses to provide support to their workers during a crisis, while improving work culture and employee retention.
recommendation
Recommendation from County Administrator: Recommend Approval