HF 991

as introduced - 88th Legislature (2013 - 2014) Posted on 02/28/2013 11:27am

A bill for an act
relating to economic development; expanding the Minnesota investment fund
to include development authorities; amending Minnesota Statutes 2012, section
116J.8731, subdivisions 2, 8, 9.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2012, section 116J.8731, subdivision 2, is amended to
read:

Subd. 2.

Administration.

The commissioner shall administer the fund as part of
the Small Cities Development Block Grant Program. Funds shall be made available to
local communities and recognized Indian tribal governments in accordance with the rules
adopted for economic development grants in the small cities community development
block grant program, except that all units of general purpose local government are eligible
applicants for Minnesota investment funds. new text begin Eligible applicants for the state-funded
portion of the fund also include development authorities as defined in section 116J.552,
subdivision 4, provided that the governing body of the municipality approves, by
resolution, the application of the development authority. new text end The commissioner may also
make funds available within the department for eligible expenditures under subdivision 3,
clause (2). A home rule charter or statutory city, county, or town may loan or grant money
received from repayment of funds awarded under this section to a regional development
commission, other regional entity, or statewide community capital fund as determined by
the commissioner, to capitalize or to provide the local match required for capitalization of
a regional or statewide revolving loan fund.

Sec. 2.

Minnesota Statutes 2012, section 116J.8731, subdivision 8, is amended to read:

Subd. 8.

Disaster contingency account; repayments.

There is created a Minnesota
investment fund disaster contingency account in the special revenue fund. Repayment of
loan amounts to the local government unit new text begin or development authority new text end under this section
shall be forwarded to the commissioner and deposited in the disaster contingency account
in the Minnesota investment fund to be appropriated by law for future disaster relief.

Sec. 3.

Minnesota Statutes 2012, section 116J.8731, subdivision 9, is amended to read:

Subd. 9.

Requirements for assistance.

new text begin (a) new text end All awards under section 12A.07 are
subject to the deleted text begin following deleted text end requirements new text begin in this subdivision new text end .

deleted text begin (a) Eligible applicants include the following:
deleted text end

new text begin (b) Eligible applicants are subject to the following requirements:
new text end

(1) Applicants may be any business or nonprofit organization in the area included
in the disaster declaration that was directly and adversely affected by the disaster. This
includes: businesses, cooperatives, utilities, industrial, commercial, retail, and nonprofit
organizations, including those nonprofits that provide residential, health care, child care,
social, or other services on behalf of the Department of Human Services to residents
included in the disaster area.

(2) Business applicants must be organized as a proprietorship, partnership, LLC, or
a corporation.

(3) Applicants must have been in operation before the date of the disaster.

deleted text begin (b) Eligible activities. deleted text end new text begin (c) new text end Loan funds may be used to assist businesses only in their
recovery efforts but are not available to provide relief from economic losses.

deleted text begin (c) Eligible costs. deleted text end new text begin (d) new text end Eligible costs may include the following: repair of buildings,
leasehold improvements, fixtures and/or equipment, loss of inventory, and cleanup costs.

deleted text begin (d) deleted text end new text begin (e) new text end Ineligible activities new text begin include all of the following new text end :

(1) deleted text begin Ineligible applicants. deleted text end Any applicants not meeting the eligibility requirements
outlined in this subdivision are ineligible to receive recovery loan funds.

(2) deleted text begin Ineligible activities. deleted text end Funds may not be used for lending or investment operations,
land speculation, or any activity deemed illegal by federal, state, or local law or ordinance.

(3) deleted text begin Ineligible costs. deleted text end Ineligible costs include but are not limited to: economic injury
losses, relocation, management fees, financing costs, franchise fees, debt consolidation,
moving costs, refinancing debt existing prior to the date of the disaster, and operating costs.

deleted text begin (e) deleted text end new text begin (f) new text end Loan application:

deleted text begin (1) Application process. deleted text end All parties seeking recovery loan funds must file an
application with the local unit of government new text begin or development authority new text end . Small Business
Administration (SBA) application forms may be used. Applications must be transmitted
in the form and manner prescribed by the commissioner.

deleted text begin (f) Application information. deleted text end new text begin (g) new text end Only completed applications will be reviewed for
consideration. Submittal of the following information constitutes a complete application:

(1) Minnesota investment fund recovery loan fund application;

(2) business SBA disaster application, if applicable;

(3) regional development organization or responsible local government application,
if applicable;

(4) administrative contact;

(5) business release for local government to review SBA damage assessment/loss
verification, if applicable;

(6) proof of loss statement from insurer;

(7) construction cost estimates;

(8) invoices for work completed;

(9) quotes for equipment;

(10) proposed security;

(11) company historical financial statements for the 24 months immediately prior to
the application date;

(12) credit check release;

(13) number of jobs to be retained;

(14) wages paid;

(15) amount of loan request;

(16) documentation of damages incurred;

(17) property taxes paid and current;

(18) judgments, liens, agreements, consent decrees, stipulations for settlements, or
other such actions which would prevent the applicant from participating in any program
administered by the responsible local, state, or regional government;

(19) compliance with all applicable local ordinances and plans;

(20) documentation through financial and tax records that the business was a viable
operating entity at the time of the flood;

(21) business tax identification number; and

(22) other documentation as requested.

deleted text begin (g) deleted text end new text begin (h) new text end Incomplete applications will be assigned pending status and the applicant
will be informed in writing of the missing documentation.

deleted text begin (h) Determination of eligibility. deleted text end new text begin (i) new text end Applicant eligibility will be determined using
criteria enumerated in paragraph deleted text begin (a) deleted text end new text begin (b) new text end . A credit check for the company and each of its
principal owners may be conducted. An owner's encumbrance report will be completed
by the Recorder's Office.

new text begin (j) new text end A grant recipient is eligible for assistance provided under this section only after the
recipient has claimed all applicable private insurance and the recipient has utilized all other
sources of applicable assistance available under the act appropriating funding for the grant.