HF 337

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to employment and economic development; establishing the small
business growth acceleration program; requiring a report; appropriating money;
proposing coding for new law in Minnesota Statutes, chapter 116O.

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

Section 1.

new text begin [116O.115] SMALL BUSINESS GROWTH ACCELERATION
PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment; purpose. new text end

new text begin The small business growth acceleration
program is established. The purpose of the program is to (1) help qualified companies
implement technology and business improvements; and (2) bridge the gap between
standard market pricing for technology and business improvements and what qualified
companies can afford to pay.
new text end

new text begin Subd. 2. new text end

new text begin Qualified company. new text end

new text begin A company is qualified to receive assistance under the
growth acceleration program if it is a manufacturing company or a manufacturing-related
service company that employs 100 or fewer full-time equivalent employees.
new text end

new text begin Subd. 3. new text end

new text begin Applications for assistance. new text end

new text begin A company seeking assistance under the
growth acceleration program must file an application according to the requirements of
the corporation. A company's application for growth acceleration program assistance
must include documentation of the company's overall plan for technology and business
improvement and prioritize the components of the overall plan. The application must also
document the company's need for growth acceleration program funds in order to carry
forward the highest priority components of the plan.
new text end

new text begin Subd. 4. new text end

new text begin Fund awards; use of funds. new text end

new text begin (a) The corporation shall establish procedures
for determining which applicants for assistance under the growth acceleration program
will receive program funding. Funding shall be awarded only to accelerate a qualified
company's adoption of needed technology or business improvements when the corporation
concludes that it is unlikely the improvements could be accomplished in any other way.
new text end

new text begin (b) The maximum amount of funds awarded to a qualified company under the
growth acceleration program for a particular project must not exceed 50 percent of the
total cost of a project and must not under any circumstances exceed $25,000 during a
calendar year. The corporation shall not award to a qualified company growth acceleration
program funds in excess of $50,000 per year.
new text end

new text begin (c) Any funds awarded to a qualified company under the growth acceleration
program must be used for business services and products that will enhance the operation
of the company. These business services and products must come either directly from
the corporation or from a network of expert providers identified and approved by the
corporation. No company receiving growth acceleration program funds may use the funds
for refinancing, overhead costs, new construction, renovation, equipment, or computer
hardware.
new text end

new text begin (d) Any funds awarded must be disbursed to the qualified company as reimbursement
documented according to requirements of the corporation.
new text end

new text begin Subd. 5. new text end

new text begin Service agreements. new text end

new text begin The corporation shall enter a written service
agreement with each company awarded funds under the growth acceleration program.
Each service agreement shall clearly articulate the company's need for service, state the
cost of the service, identify who will provide the service, and define the scope of the
service that will be provided. The service agreement must also include an estimate of the
financial impact of the service on the company and require the company to report the actual
financial impact of the service to the corporation 24 months after the service is provided.
new text end

new text begin Subd. 6. new text end

new text begin Reporting. new text end

new text begin The corporation shall report annually to the legislative
committees with fiscal jurisdiction over the corporation:
new text end

new text begin (1) the funds awarded under the growth acceleration program during the past 12
months;
new text end

new text begin (2) the estimated financial impact of the funds awarded to each company receiving
service under the program; and
new text end

new text begin (3) the actual financial impact of funds awarded during the past 24 months.
new text end

Sec. 2. new text begin APPROPRIATION.
new text end

new text begin $1,000,000 in fiscal year 2008 and $1,000,000 in fiscal year 2009 are appropriated
from the general fund to Minnesota Technology, Inc. for the small business growth
acceleration program established under Minnesota Statutes, section 116O.115.
new text end