<a id="pl.1.3"></a><var>1.3</var>organizations; authorizing loans; appropriating money;proposing coding for new <br/>
<a id="pl.1.4"></a><var>1.4</var>law in Minnesota Statutes, chapter 116J.<br/>
<a id="pl.1.5"></a><var>1.5</var>BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:<br/>
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<a id="bill.0.1.0"></a><a id="pl.1.6"></a><var>1.6</var>    Section 1. <b>[116J.417] GREATER MINNESOTA BUSINESS DEVELOPMENT </b><br/>
<a id="pl.1.7"></a><var>1.7</var><b>INVESTMENT FUND.</b><br/>
<a id="pl.1.8"></a><var>1.8</var>    Subdivision 1. <b>Eligible organization.</b> For the purposes of this section, "eligible <br/>
<a id="pl.1.9"></a><var>1.9</var>organization" means an organization selected under section 116J.415, subdivision 3, that <br/>
<a id="pl.1.10"></a><var>1.10</var>provides business financing to greater Minnesota businesses.<br/>
<a id="pl.1.11"></a><var>1.11</var>    Subd. 2. <b>Investment fund establishment.</b> The commissioner shall establish an <br/>
<a id="pl.1.12"></a><var>1.12</var>investment fund from which fund investments can be made in eligible organizations. The <br/>
<a id="pl.1.13"></a><var>1.13</var>funds repaid by the eligible organizations must be returned to the fund for subsequent <br/>
<a id="pl.1.14"></a><var>1.14</var>reinvestment in eligible organizations.<br/>
<a id="pl.1.15"></a><var>1.15</var>    Subd. 3. <b>Authorized investments.</b> The commissioner may make investments in <br/>
<a id="pl.1.16"></a><var>1.16</var>eligible organizations. The commissioner shall invest funds in the form of loans to eligible <br/>
<a id="pl.1.17"></a><var>1.17</var>organizations for the purpose of providing capital to new and expanding businesses in the <br/>
<a id="pl.1.18"></a><var>1.18</var>form of debt or equity, or both.<br/>
<a id="pl.1.19"></a><var>1.19</var>    Subd. 4. <b>Investment authorized.</b> The commissioner may make investments in <br/>
<a id="pl.1.20"></a><var>1.20</var>eligible organizations under the following terms:<br/>
<a id="pl.1.21"></a><var>1.21</var>(1) the organization seeking an investment of funds must guarantee repayment of not <br/>
<a id="pl.1.22"></a><var>1.22</var>less than 100 percent of the funds invested in the eligible organization;<br/>
<a id="pl.1.23"></a><var>1.23</var>(2) the investments must be made in the form of a loan to the eligible organization <br/>
<a id="pl.1.24"></a><var>1.24</var>for a term of ten years, at an interest rate of one percent;<br/>
<a id="pl.2.1"></a><var>2.1</var>(3) during the ten-year term of the loan, the eligible organization must make annual <br/>
<a id="pl.2.2"></a><var>2.2</var>interest-only payments;<br/>
<a id="pl.2.3"></a><var>2.3</var>(4) at the end of the ten-year term, the eligible organization must make a payment in <br/>
<a id="pl.2.4"></a><var>2.4</var>the entire principal amount of the initial loan;<br/>
<a id="pl.2.5"></a><var>2.5</var>(5) the state investment by the commissioner in any eligible organization must <br/>
<a id="pl.2.6"></a><var>2.6</var>not exceed $2,000,000;<br/>
<a id="pl.2.7"></a><var>2.7</var>(6) the full amount of state investment must be advanced to the approved eligible <br/>
<a id="pl.2.8"></a><var>2.8</var>organization upon execution of a formal investment agreement, specifying the terms of the <br/>
<a id="pl.2.9"></a><var>2.9</var>loan, as well as reporting and other requirements outlined in subdivision 5;<br/>
<a id="pl.2.10"></a><var>2.10</var>(7) the eligible organization must maintain the funds in accounts that allow the funds <br/>
<a id="pl.2.11"></a><var>2.11</var>to be readily available for business investments;<br/>
<a id="pl.2.12"></a><var>2.12</var>(8) the eligible organization must make business investments totaling the entire <br/>
<a id="pl.2.13"></a><var>2.13</var>amount of funds loaned by the state within three years of the execution of the investment <br/>
<a id="pl.2.14"></a><var>2.14</var>agreement and subsequent transmittal of the funds; and<br/>
<a id="pl.2.15"></a><var>2.15</var>(9) an eligible organization that receives an investment under this section must <br/>
<a id="pl.2.16"></a><var>2.16</var>report annually, in a format prescribed by the commissioner, the nature and amount of <br/>
<a id="pl.2.17"></a><var>2.17</var>the business investments made, including, for each financing transaction involving funds <br/>
<a id="pl.2.18"></a><var>2.18</var>received pursuant to this section, all forms and amounts of financing provided by the <br/>
<a id="pl.2.19"></a><var>2.19</var>eligible organization from sources other than the investment fund established pursuant to <br/>
<a id="pl.2.20"></a><var>2.20</var>this section, along with the number of jobs created and private sector investment leveraged.<br/>
<a id="pl.2.21"></a><var>2.21</var>    Subd. 5. <b>Requirements for state investments.</b> All investments are subject to an <br/>
<a id="pl.2.22"></a><var>2.22</var>investment agreement which must include:<br/>
<a id="pl.2.23"></a><var>2.23</var>(1) a description of the eligible organization, including business finance experience, <br/>
<a id="pl.2.24"></a><var>2.24</var>qualifications, and investment history;<br/>
<a id="pl.2.25"></a><var>2.25</var>(2) a description of the uses of investment proceeds by the eligible organization;<br/>
<a id="pl.2.26"></a><var>2.26</var>(3) an explanation of the investment objectives;<br/>
<a id="pl.2.27"></a><var>2.27</var>(4) a description of accounting and reporting standards to be used by the eligible <br/>
<a id="pl.2.28"></a><var>2.28</var>organization; and<br/>
<a id="pl.2.29"></a><var>2.29</var>(5) a copy of the most recent audited financial statements of the eligible organization.<br/>
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<a id="bill.0.2.0"></a><a id="pl.2.30"></a><var>2.30</var>    Sec. 2. <b>APPROPRIATION.</b><br/>
<a id="pl.2.31"></a><var>2.31</var>$12,000,000 is appropriated in fiscal year 2010 from the general fund to the <br/>
<a id="pl.2.32"></a><var>2.32</var>commissioner of employment and economic development to provide loans authorized <br/>
<a id="pl.2.33"></a><var>2.33</var>under section 1. This appropriation is available until expended.<br/>