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HF 1784

as introduced - 92nd Legislature (2021 - 2022) Posted on 03/22/2021 05:20pm

KEY: stricken = removed, old language.
underscored = added, new language.
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A bill for an act
relating to economic development; requiring a report; appropriating money for a
small business support program.

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

Section 1. new text beginSMALL BUSINESS SUPPORT PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Analysis of small business programs. new text end

new text begin $....... in fiscal year 2022 and
$....... in fiscal year 2023 are appropriated from the general fund to the commissioner of
employment and economic development to conduct a study of the effectiveness and impact
of small business support programs administered or funded by the department. The study
must assess how the state can most effectively support small business development and
growth into the future, especially for BIPOC and women entrepreneurs and small business
owners. The study must examine money spent by the department in fiscal years 2018 to
2021, and examine loans, grants, and consulting services provided to support entrepreneurs
and small businesses with fewer than 300 employees. In addition, the study must include
an examination of approaches used around the country to identify best practices and
approaches that should be considered in the state.
new text end

new text begin Subd. 2. new text end

new text begin Quantitative aspects. new text end

new text begin The study must include the following quantitative data:
new text end

new text begin (1) the number of businesses that received assistance;
new text end

new text begin (2) the demographics of business owners receiving assistance;
new text end

new text begin (3) the size of businesses;
new text end

new text begin (4) the type and value of assistance, including grants, loans, technical assistance, education
about starting a business, business planning, insurance, taxes, and local and state regulations;
new text end

new text begin (5) the amount of money spent on administration;
new text end

new text begin (6) for below market rate loans, whether businesses would have qualified for capital on
the private market; and
new text end

new text begin (7) information about the eligibility criteria and application requirements.
new text end

new text begin Subd. 3. new text end

new text begin Qualitative aspects. new text end

new text begin (a) The study must include the following qualitative data:
new text end

new text begin (1) interviews, surveys, or focus groups with business owners who received assistance
from business support programs about their experience applying for the assistance and the
impact of the assistance as to what worked well, what was challenging, and what could be
improved;
new text end

new text begin (2) interviews, surveys, or focus groups with applicants who did not receive assistance
and entrepreneurs or business owners who did not apply for business support programs
about their experience applying and why they did not apply, respectively; and
new text end

new text begin (3) interviews, surveys, or focus groups with public and nonprofit program administrators
to identify ways in which the programs work well, barriers to accessing the programs, and
what could be improved.
new text end

new text begin (b) The study must oversample entrepreneurs and small business owners from BIPOC
communities and who are women and program administrators who focus on serving these
communities.
new text end

new text begin Subd. 4. new text end

new text begin Report and recommendations. new text end

new text begin The commissioner of employment and economic
development must submit a report on the study and make recommendations for how the
state can maximize the effectiveness of investments in small business supports, particularly
for BIPOC and women entrepreneurs, by January 15, 2023, to the chairs and ranking minority
members of the committees in the senate and house of representatives with jurisdiction over
jobs and economic development.
new text end

new text begin Subd. 5. new text end

new text begin Advisory group. new text end

new text begin (a) To complete the study and report under this section, the
commissioner of employment and economic development must consult with a group of four
public or nonprofit program administrators and at least eight small businesses owners
appointed by Main Street Alliance on:
new text end

new text begin (1) the development of the qualitative data collection tools;
new text end

new text begin (2) the methods and sample for qualitative data collection; and
new text end

new text begin (3) the recommendations to the legislature under subdivision 3.
new text end

new text begin (b) Of the business owners advising the department, at least half must identify as BIPOC,
at least half as women, and all owners must own a business in economically disadvantaged
areas of Minneapolis, St. Paul, or outside of the seven-county metropolitan area.
new text end