A groundbreaking initiative aimed at expanding access to capital for historically marginalized communities took center stage at the Minnesota Senate Committee on Jobs and Economic Development meeting on February 17, 2025. The proposed Groundbreak Capital Access and Innovation Fund, spearheaded by Senator Muhammad, seeks to invest $50 million in both the 2026 and 2027 fiscal years, with an additional $50 million earmarked for the following biennium.

The bill, which was amended to require a $10 million private investment before public funds are released, aims to create a robust financial ecosystem that supports entrepreneurship, neighborhood commercial real estate development, and home ownership. Senator Muhammad emphasized the importance of this initiative, stating it would provide critical financial tools, including forgivable loans for startups and down payment assistance for homebuyers.

Adair Mosley, CEO of the African American Leadership Forum and a member of the Groundbreak Coalition, highlighted the initiative's potential to unlock $5.3 billion in capital over the next decade. This funding is expected to assist 11,000 homeowners, support 60 new commercial developments, and create 8,000 jobs, primarily benefiting communities that have faced systemic barriers to capital access.

R.T. Ryback, former mayor of Minneapolis and current president of the Minneapolis Foundation, reinforced the coalition's commitment to addressing economic disparities. He noted that nearly a billion dollars in capital has already been mobilized, thanks to a diverse coalition of financial institutions and private entities. Ryback explained that by de-risking loans through strategic partnerships, the initiative aims to foster equitable economic outcomes for all Minnesotans.

The committee's discussions underscored a collective recognition of the urgent need for innovative financial solutions to bridge the wealth gap and promote economic vitality across the state. As the bill moves forward, stakeholders are optimistic about its potential to transform the financial landscape for underserved communities in Minnesota.