We study the non-minimal supersymmetric heterotically deformed $\mathcal{N}=(0,2)$ sigma model with the Grassmannian target space $\mathcal{G}_{M,N}$. To develop the appropriate superfield formalism, we begin with a simplified model with flat target space, find its beta function up to two loops, and prove a non-renormalization theorem. Then we generalize the results to the full model with the Grassmannian target space. Using the geometric formulation, we calculate the beta functions and discuss the 't Hooft and Veneziano limits.

21 pages, 6 figures