1.1 	A bill for an act
1.2 	relating to economic development; establishing an investment fund to 
1.3 	provide financing to certain greater Minnesota businesses; authorizing certain 
1.4 	investments; appropriating money;proposing coding for new law in Minnesota 
1.5 	Statutes, chapter 116J.
1.6 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.7 	Section 1. [116J.635] GREATER MINNESOTA BUSINESS DEVELOPMENT 
1.8 	INVESTMENTS.
1.9 		Subdivision 1.Investment fund.  The commissioner shall establish an investment 
1.10 	fund from which investments can be made in qualified organizations under this section. 
1.11 	The commissioner shall return to the investment fund all funds repaid by qualifying 
1.12 	organizations under subdivision 4 and shall use these funds for subsequent reinvestment in 
1.13 	qualified organizations.
1.14 		Subd. 2. Qualified organizations.  The commissioner is authorized to make 
1.15 	investments in organizations that are established pursuant to section 116J.415 and provide 
1.16 	business financing to greater Minnesota businesses.
1.17 		Subd. 3. Authorized investments.  The commissioner shall invest funds in the form 
1.18 	of loans to provide capital for business lending and investment by qualified organizations.
1.19 		Subd. 4. Investment authorized.  The commissioner may make an investment in a 
1.20 	qualified organization only if the investment conforms to the following terms: 
1.21 	(1) The qualified organization provides collateral or security for not less than 100 
1.22 	percent of the funds invested in the organization.
1.23 	(2) The investment is made in the form of a loan for a term of ten years, at an 
1.24 	interest rate of one percent. 
2.1 	 (3) During the ten-year term of a loan, the qualified organization shall make 
2.2 	interest-only payments.
2.3 	(4) At the end of the ten-year term of the loan, the qualified organization is required 
2.4 	to make a payment of the entire principal amount of the initial loan. 
2.5 	 (5) The state investment by the commissioner in a single qualified organization may 
2.6 	not exceed $2,000,000.

2.7 	Sec. 2. APPROPRIATION.
 2.8 	$12,000,000 is appropriated from the general fund to the commissioner of 
2.9 	employment and economic development to provide loans authorized under section 1.