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HF 4742

as introduced - 92nd Legislature (2021 - 2022) Posted on 04/04/2022 03:39pm

KEY: stricken = removed, old language.
underscored = added, new language.

Bill Text Versions

Engrossments
Introduction Posted on 04/04/2022

Current Version - as introduced

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A bill for an act
relating to economic development; modifying the forgivable loan program for
remote recreational businesses; amending Laws 2021, First Special Session chapter
10, article 2, section 24.

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

Section 1.

Laws 2021, First Special Session chapter 10, article 2, section 24, is amended
to read:


Sec. 24. FORGIVABLE LOAN PROGRAM FOR REMOTE RECREATIONAL
BUSINESSES.

Subdivision 1.

Establishment.

Lake of the Woods County shall establish a loan program
to make forgivable loans to eligible remote recreational businesses that experienced a loss
in revenue that is greater than 30 percent during the period between March 15, deleted text begin 2020deleted text end new text begin 2021new text end ,
and March 15, deleted text begin 2021deleted text end new text begin 2022new text end , as compared with deleted text begin the previous yeardeleted text end new text begin March 15, 2019, and March
15, 2020
new text end .

Subd. 2.

Definition.

For the purposes of this section, "remote recreational business"
means a business in the contiguous United States that is:

(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;

(2) located within 75 miles of the United States and Canadian border; and

(3) only accessible by land via Canada.

Subd. 3.

Eligibility.

To be eligible for a forgivable loan, a remote recreational business
must:

(1) have been in operation on March 15, deleted text begin 2020deleted text end new text begin 2021new text end ;

(2) show that the closurenew text begin and ongoing COVID-19-related requirementsnew text end of the United
States and Canadian border restricted the ability of American customers to access the location
of the remote recreational business; and

(3) not have received a grant under the Main Street COVID-19 relief grant program.

Subd. 4.

Application.

(a) Lake of the Woods County shall develop forms and procedures
for soliciting and reviewing applications for loans under this section.

(b) Loans shall be made before deleted text begin April 1, 2022deleted text end new text begin December 30, 2022new text end . Any funds not spent
by April 1, deleted text begin 2022deleted text end new text begin 2023new text end , must be returned to the state general fund.

new text begin (c) If there are insufficient funds to fund all claims in full, the county shall distribute
funds on a prorated basis.
new text end

Subd. 5.

Maximum loan amount.

The maximum loan amount shall be equal to 75
percent of the remote recreational business's gross annual receipts for fiscal deleted text begin yeardeleted text end new text begin yearsnew text end 2020new text begin
and 2021
new text end , not to exceed $500,000 per eligible remote recreational business.

Subd. 6.

Forgiveness.

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. Lake of the
Woods County shall forgive 100 percent of the value of a loan received less the amount the
borrower received from:

(1) any other loan forgiveness program, including any program established under the
CARES Act, Public Law 116-136; and

(2) an advance received under section 1110 of the CARES Act, United States Code, title
15, section 9009.

Subd. 7.

Report to legislature.

By deleted text begin January 15deleted text end new text begin April 30new text end , 2023, Lake of the Woods County
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.

new text begin EFFECTIVE DATE. new text end

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