New laws in Minnesota push countless businesses to the edge of collapse.
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The Struggles of Small Business Owners in Minnesota
The Washington Examiner recently visited Minnesota to investigate the state’s Democratic-Farmer-Labor Party and their progressive agenda. What we discovered was a Republican Party in distress, frustrated small business owners, and a lack of cooperation from Democrats. In this series, we delve into the broken promises made by lawmakers, the Republican efforts to mitigate the damage, and the unintended consequences of certain bills, including one that could devastate small businesses.
A Small Business Owner’s Dilemma
Meet Jerrilynn Sweeney, the owner of Innovated Building Concepts, a commercial siding business in Burnsville, Minnesota. For the past eight years, Sweeney has made it a tradition to provide lunch for her employees every Wednesday. This practice fosters camaraderie and strengthens the bond between office workers and those in the field.
“We all sit in one room and eat,” Sweeney told the Washington Examiner. “Everybody knows everybody’s kids. We can laugh, we can joke, but when it comes down to ‘We’re in a load of [trouble], we’ve got to get this done,’ they all stand up and help one another.”
However, the atmosphere has changed drastically in recent times.
Like many other small business owners in Minnesota, Sweeney is bracing herself for the impact of new laws passed by the Democratic-controlled legislature. These laws specifically target businesses like hers, burdening them with exorbitant expenses and a web of regulations that may force some to shut down permanently.
Minnesota experienced a wave of rejection towards Republican candidates during the midterms. The Democratic-Farmer-Labor Party now holds significant control in the state, with four out of eight U.S. House seats, both U.S. Senate seats, the state legislature, and all other statewide offices under their command. They have swiftly implemented one of the most progressive agendas in the country, often disregarding the concerns of those affected by their regulations.
One of the laws signed by Governor Tim Walz is the creation of a state-run program that allows workers to take extended leave with partial pay for various reasons, such as having a child, dealing with a serious medical issue, or experiencing domestic abuse. While the law won’t take effect until 2026, it is unlikely to undergo significant changes even if Republicans gain a majority in the next House elections.
“You start thinking about this stuff, and you think, ‘Holy s***, they’re going to put us all out of business,” Sweeney said. “I’ve worked my ass off for this company.”
Innovated Building Concepts, which employs less than 20 people, has been operating since 1987. Sweeney and her husband, Pat, purchased the business in 2011. Their portfolio includes notable projects like a Crayola installation, the US Bank Stadium parking ramp, LL Bean at the Mall of America, Dave & Buster’s, and the Killebrew pedestrian bridge.
“When we first started, we didn’t take paychecks. It was 2016 before we actually took a full salary,” she said, recalling a time when she worked 50 consecutive days. Despite their dedication and hard work, the future of their business remains uncertain.
Mike Flynn, another small business owner in southeastern Minnesota, shares Sweeney’s concerns. Flynn owns a small ranch, has an interest in the Whitewater Travel Plaza and Restaurant, and works as a dentist. He believes that the new laws in Minnesota are the most aggressive and extensive in the country, exacerbating the existing labor shortage and making it difficult for small businesses to find and replace employees on a temporary basis.
John Reynolds, the state director for the National Federation of Independent Businesses, which represents over 10,000 small business owners in Minnesota, expressed their feeling of betrayal by elected officials. Small business owners had hoped for relief after navigating the challenges of the pandemic, inflation, and supply chain shortages. However, they were met with disappointment.
“The idea that they turned their backs on us really captures how most small business owners feel here,” Reynolds said. “We had the biggest surplus by far the state has ever had, and [small business owners] feel like that’s the product of their hard work. Being the economic backbone of a lot of parts of the state, I think they thought, ‘Hey, this is going to be a time when we get some relief.'”
Democratic lawmakers, on the other hand, have touted their accomplishments and attempted to rebrand themselves as allies of small businesses. However, small business owners remain skeptical.
“It’s a really puzzling conclusion from the session,” Reynolds said. “The taxes are just part of the story. Minnesota is a really expensive place to live and an expensive place to do business… You name it, we tax it.”
Minnesota was recently ranked as the most expensive state for new entrepreneurs, with the highest corporate income tax rate in the country at 9.8%. The state also faces high labor costs.
For Sweeney, the future of her company is uncertain and disheartening.
“We’re small. We can’t absorb that kind of money,” she said. “Almost everything they passed is going to hurt small businesses. You shouldn’t be allowed to run for legislator unless you’ve run a small business yourself so you know what a real budget is and what it takes. What you take away from us, you take away from the next person and the next.”
The Washington Examiner reached out to Democratic leadership in the state and Governor Walz’s office for comment but did not receive a response.
Stay tuned for Part Two of the Washington Examiner’s Minnesota series, where we explore the state of the Republican Party as it fights to regain power.
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