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In a move aimed at bolstering the protection of small businesses in Minnesota, the state government passed new legislation on September 26, 2025. The bill, known as the Small Business Protection Act, aims to provide additional support and resources to small businesses in the state, particularly in the wake of the economic challenges caused by the COVID-19 pandemic.One key provision of the Small Business Protection Act is the establishment of a Small Business Assistance Fund, which will provide financial assistance to small businesses struggling to recover from the impact of the pandemic. The fund will offer grants and low-interest loans to eligible businesses, with a focus on those owned by women, minorities, and veterans.Additionally, the legislation includes measures to streamline the process for small businesses seeking government contracts. Under the new law, state agencies will be required to set aside a certain percentage of their contracts for small businesses, making it easier for these businesses to compete for government work.Another important aspect of the Small Business Protection Act is the creation of a Small Business Ombudsman Office within the state government. This office will serve as a resource for small business owners, providing guidance on navigating legal and regulatory issues, as well as offering mediation services in the event of disputes with other businesses or government agencies.State officials and business leaders alike have praised the passage of the Small Business Protection Act, noting that it will help to level the playing field for small businesses in Minnesota and ensure their continued success and growth."This legislation is a crucial step in supporting the backbone of our economy – small businesses," said Governor Jane Smith. "By providing them with the resources and support they need to thrive, we are not only helping individual businesses but also strengthening the overall economic health of our state."The Small Business Protection Act is set to go into effect on January 1, 2026, and state agencies are already taking steps to implement the new provisions. Small business owners are encouraged to stay informed about the changes and take advantage of the resources and assistance available to them under the new law.