HF 1880

as introduced - 92nd Legislature (2021 - 2022) Posted on 03/04/2021 02:43pm

A bill for an act
relating to economic development; establishing a forgivable loan program for
remote recreational businesses; requiring a report; appropriating money.

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

Section 1. new text begin FORGIVABLE LOAN PROGRAM FOR REMOTE RECREATIONAL
BUSINESSES.
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new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin The commissioner shall establish a loan program to make
forgivable loans to eligible remote recreational businesses that experienced a loss in revenue
that is greater than 50 percent during the period between March 1, 2020, and September 7,
2020, as compared with the same period during the previous year.
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new text begin Subd. 2. new text end

new text begin Definitions. new text end

new text begin (a) For the purposes of this section, the terms defined in this
subdivision have the meanings given.
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new text begin (b) "Commissioner" means the commissioner of employment and economic development.
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new text begin (c) "Remote recreational business" means a business in the contiguous United States
that is:
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new text begin (1) a small business concern as defined under section 3 of the Small Business Act, United
States Code, title 15, section 632, operating in the recreational industry;
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new text begin (2) located within 75 miles of the United States and Canadian border; and
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new text begin (3) only accessible by land via Canada.
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new text begin Subd. 3. new text end

new text begin Eligibility. new text end

new text begin To be eligible for a forgivable loan, a remote recreational business
must:
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new text begin (1) have been in operation on March 1, 2020; and
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new text begin (2) show that the closure of the United States and Canadian border restricted the ability
of American customers to access the location of the remote recreational business.
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new text begin Subd. 4. new text end

new text begin Application. new text end

new text begin (a) The commissioner shall develop forms and procedures for
soliciting and reviewing applications for loans under this section.
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new text begin (b) Loans shall be made by December 30, 2021.
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new text begin Subd. 5. new text end

new text begin Maximum loan amount. new text end

new text begin The maximum loan amount shall be equal to 75
percent of the remote recreational business's gross annual receipts for fiscal year 2020, not
to exceed $500,000 per eligible remote recreational business.
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new text begin Subd. 6. new text end

new text begin Forgiveness. new text end

new text begin Loans are forgiven for a remote recreational business if the
business remains in operation for at least one year after the date of the loan. The
commissioner shall forgive 100 percent of the value of a loan received less the amount the
borrower received from:
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new text begin (1) any other loan forgiveness program, including any program established under the
CARES Act, Public Law 116-136; and
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new text begin (2) an advance received under section 1110 of the CARES Act, United States Code, title
15, section 9009.
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new text begin Subd. 7. new text end

new text begin Report to legislature. new text end

new text begin By January 15, 2022, the commissioner shall report to
the legislative committees with jurisdiction over economic development policy and finance
on the loans provided to remote recreational businesses under this section.
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new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
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Sec. 2. new text begin APPROPRIATION; FORGIVABLE LOAN PROGRAM FOR REMOTE
RECREATIONAL BUSINESSES.
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new text begin $5,000,000 in fiscal year 2021 is appropriated from the coronavirus relief fund to the
commissioner of employment and economic development for the forgivable loan program
for remote recreational businesses under section 1. This is a onetime appropriation. Funds
are available until December 30, 2021.
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new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end