SF 2219

Introduction - 94th Legislature (2025 - 2026)

Posted on 03/07/2025 09:56 a.m.

A bill for an act
relating to economic development; requiring a report; appropriating money for a
grant to the Fursad Fund Initiative to support small businesses in greater Minnesota
through technical assistance, capacity building, and access to capital.

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

Section 1. new text begin APPROPRIATION.
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new text begin Subdivision 1. new text end

new text begin Appropriation. new text end

new text begin $1,000,000 in fiscal year 2026 is appropriated from the
general fund to the commissioner of employment and economic development for a grant to
the Center for African Immigrants and Refugees Organization (CAIRO) to administer the
Fursad Fund Initiative.
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new text begin Subd. 2. new text end

new text begin Eligible recipients. new text end

new text begin (a) Money appropriated under this section must be used
for grants or loans to support small businesses that:
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new text begin (1) are located outside the seven-county metropolitan area as defined under Minnesota
Statutes, section 473.121, subdivision 2;
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new text begin (2) are owned by historically underserved entrepreneurs, including immigrants, refugees,
and communities of color; and
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new text begin (3) have fewer than 25 employees and demonstrate a financial need for capital investment
or technical assistance.
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new text begin Technical assistance services shall be provided regardless of financing status to ensure that
all entrepreneurs receive necessary business support.
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new text begin (b) Grants or loans made under this section may be used for:
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new text begin (1) technical assistance and business coaching, including: (i) providing individualized
mentorship, business planning, and financial literacy training; and (ii) offering
industry-specific workshops and coaching to strengthen business operations;
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new text begin (2) capacity building for entrepreneurs, including: (i) assisting small businesses in
navigating regulatory processes and financial planning; and (ii) expanding networking and
peer-to-peer learning opportunities; and
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new text begin (3) access to capital through direct lending, including: (i) establishing a microloan fund
tailored to small businesses in greater Minnesota; and (ii) offering alternative lending models
for entrepreneurs who require culturally aligned financial solutions.
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new text begin (c) CAIRO, in collaboration with the commissioner of employment and economic
development, shall submit a report to the legislature by July 1, 2027, detailing:
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new text begin (1) the number of businesses served and their geographic distribution;
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new text begin (2) the amount of capital deployed and loan repayment rates;
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new text begin (3) the job creation impact and revenue growth of supported businesses; and
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new text begin (4) recommendations for program improvements and potential expansion.
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new text begin (d) The report under paragraph (c) must include the following information to determine
the efficacy of the program:
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new text begin (1) the number of small businesses receiving technical assistance and mentorship;
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new text begin (2) the percentage of businesses accessing capital through direct lending programs;
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new text begin (3) the growth in revenue, employment, and sustainability of participating businesses;
and
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new text begin (4) the regional economic impact, including increased economic activity in greater
Minnesota.
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new text begin (e) The Department of Employment and Economic Development shall oversee funding
distribution and ensure compliance with state and federal reporting requirements.
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