HF 1100

as introduced - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to economic development; modifying 
  1.3             requirements for microenterprise technical assistance; 
  1.4             appropriating money; amending Minnesota Statutes 1998, 
  1.5             section 116J.8745, subdivisions 1 and 2. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 1998, section 116J.8745, 
  1.8   subdivision 1, is amended to read: 
  1.9      Subdivision 1.  [TECHNICAL ASSISTANCE; LOAN 
  1.10  ADMINISTRATION.] The commissioner of trade and economic 
  1.11  development shall make grants to nonprofit organizations to 
  1.12  provide technical assistance loans to individuals with 
  1.13  entrepreneurial plans that require microenterprise loans in an 
  1.14  amount ranging from approximately $1,000 to $25,000, and for 
  1.15  loan administration costs related to those microenterprise loans.
  1.16  Microenterprise is a small business which employs under five 
  1.17  employees plus the owner and requires under $25,000 to start to 
  1.18  support the startup and growth of self-employment and 
  1.19  microbusinesses.  Eligible businesses are microenterprises 
  1.20  employing under five people plus the owner and requiring under 
  1.21  $25,000 or no capital to start or expand the business.  Eligible 
  1.22  expenses include loan administration costs related to providing 
  1.23  microenterprise loans. 
  1.24     Sec. 2.  Minnesota Statutes 1998, section 116J.8745, 
  1.25  subdivision 2, is amended to read: 
  2.1      Subd. 2.  [GRANT ELIGIBILITY AND ALLOCATION.] Nonprofit 
  2.2   organizations must apply for grants under this section following 
  2.3   procedures established by the commissioner.  To be eligible for 
  2.4   a grant, an organization must demonstrate to the commissioner 
  2.5   that it has the appropriate expertise.  The commissioner shall 
  2.6   give preference for grants to organizations that target 
  2.7   nontraditional entrepreneurs such as women, members of a 
  2.8   minority, low-income individuals, or persons seeking work who 
  2.9   are currently on or recently removed from welfare assistance. 
  2.10     An application must include: 
  2.11     (1) the local need for microenterprise support; 
  2.12     (2) proposed criteria for business eligibility; 
  2.13     (3) proposals for identifying and serving eligible 
  2.14  businesses; 
  2.15     (4) a description of technical assistance to be provided to 
  2.16  eligible businesses; 
  2.17     (5) proposals to coordinate technical assistance with 
  2.18  financial assistance; and 
  2.19     (6) a demonstration of ability to collaborate with other 
  2.20  agencies including educational and financial institutions; and 
  2.21     (7) project goals identifying the number of eligible 
  2.22  businesses to be assisted with the state funds awarded under the 
  2.23  grant. 
  2.24     Sec. 3.  [APPROPRIATION.] 
  2.25     $500,000 is appropriated in fiscal year 2000 from the 
  2.26  general fund to the commissioner of trade and economic 
  2.27  development for the purposes of sections 1 and 2 to be available 
  2.28  for the biennium ending June 30, 2001.