# Hennepin County Ends Small Business Aid Program

Hennepin County, Minnesota, terminated its $2 million Small Business Recovery Fund in March 2026 after detecting widespread fraud among applicants. The program aimed to assist businesses impacted by immigration enforcement actions under Operation Metro Surge but disbursed only about $500,000 in grants to 82 businesses out of approximately 300 applicants before halting further payments. County officials, including Commissioner Jeffrey Lunde, emphasized that fraud was identified before significant funds were spent, and the county is now considering criminal investigations and reviewing legal frameworks to prevent similar issues in future aid programs.

- This case highlights the critical importance of robust fraud detection and verification processes in government aid and grant programs to protect public funds.
- Procurement and grant administrators should evaluate and strengthen application vetting procedures to mitigate risks of fraudulent claims.
- Legal and compliance teams may need to prepare for potential investigations and adjust program guidelines to enhance accountability.
- Businesses and contractors involved in administering aid programs should anticipate increased scrutiny and compliance requirements in future funding cycles.

**Jurisdictions:** sled
**Industries:** Professional Services
**Topics:** Regulatory Compliance
**Published:** September 21, 2026

### Government Entities
- Hennepin County
- Hennepin County Sheriff's Office

### Key Quotes
> Businesses still had rent and other bills to pay despite losing customers.
> — Gilberto Diaz, Owner of Luro Boots

> We caught the fraud before we spent any money.
> — Jeffrey Lunde, Hennepin County Commissioner

### Sources
- [Minnesota’s $2 million aid fund ends amid fraud concerns](https://knewz.com/minnesotas-anti-ice-aid-fund-ends-after-fraud) - knewz.com