HF 3099

as introduced - 89th Legislature (2015 - 2016) Posted on 03/29/2016 12:39pm

A bill for an act
relating to economic development; providing assistance for start-up and
expansion of small businesses owned by women of color; appropriating money;
requiring a report.

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

Section 1. new text begin WOMEN OF COLOR SMALL BUSINESS DEVELOPMENT
PROGRAM.
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new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For the purposes of this section, the following terms
have the meanings given.
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new text begin (b) "Commissioner" means the commissioner of employment and economic
development.
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new text begin (c) "Eligible loan recipient" means:
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new text begin (1) one or more women of color who seek to start a small business; or
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new text begin (2) a small business that:
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new text begin (i) is a women of color business;
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new text begin (ii) is not a nonprofit organization or business involved in real estate development,
exporting, multilevel marketing, adult entertainment, or lending; and
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new text begin (iii) has its principal place of operation in Ramsey County.
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new text begin (d) "Eligible organization" means a nonprofit organization located in Minnesota with
commercial lending experience, including but not limited to loan origination, servicing,
and underwriting, and experience providing technical assistance to female entrepreneurs
and women of color businesses.
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new text begin (e) "Small business" means a business entity with fewer than 50 employees.
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new text begin (f) "Women of color" means females 18 years of age or older who are American
Indian, Asian, Black, or Hispanic.
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new text begin (g) "Women of color business" means a business for which one or more women
of color:
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new text begin (1) own at least 50 percent of the business or, in the case of a publicly owned
business, own at least 51 percent of the stock; and
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new text begin (2) manage the business and control the daily business operations.
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new text begin Subd. 2. new text end

new text begin Women of color business development loan program. new text end

new text begin (a) The
commissioner shall make grants to eligible organizations to provide loans for the start-up,
expansion, and retention of small businesses located in Ramsey County that are owned by
women of color, and to provide technical assistance, in collaboration with Minnesota's
communities of color and organizations that serve women of color.
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new text begin (b) Eligible organizations may make loans to eligible loan recipients under this
section, subject to the following conditions:
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new text begin (1) the maximum loan amount may not exceed $.......;
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new text begin (2) loans are available for business start-up, expansion, retention, and establishment
of credit;
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new text begin (3) loans must have a fixed interest rate, with monthly repayment, for terms up to ten
years and may not have a penalty for prepayment;
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new text begin (4) a onetime commitment fee, not to exceed $.......; and collateral filing fees, not to
exceed, $.......;
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new text begin (5) preference for loan awards will be given to eligible loan recipients whose family
income does not exceed 80 percent of the area median income;
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new text begin (6) loans may not be denied based solely on a poor credit rating or lack of credit rating;
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new text begin (7) personal assets, including but not limited to a home, car, or personal savings,
may be used for loan collateral;
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new text begin (8) eligible loan recipients must invest savings or personal equity in the business at
least equal to ten percent of the principal amount of the loan;
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new text begin (9) eligible loan recipients and their businesses must be free of outstanding tax liens
and not currently involved in any bankruptcy proceeding as a debtor;
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new text begin (10) eligible loan recipients must not have any personal or business accounts in
default, including any bills past due;
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new text begin (11) any business partner with 20 percent or more ownership must be a coborrower
on the loan; and
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new text begin (12) technical assistance for eligible loan recipients must be available for the entire
term of the loan.
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new text begin Subd. 3. new text end

new text begin Report. new text end

new text begin By January 15, 2019, the commissioner shall submit to the
legislative committees of the house of representatives and the senate having jurisdiction
over economic development and workforce development policy and finance a report
detailing the activity under the loan program. Where data are available, data in the
report must be disaggregated, by race, cultural group, family income, geographical
location, status as a migrant or foreign immigrant, home language, English learners under
Minnesota Statutes, section 124D.59, disability, and status of homelessness.
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Sec. 2. new text begin WOMEN OF COLOR BUSINESS DEVELOPMENT PROGRAM
APPROPRIATION.
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new text begin $....... in fiscal year 2017 is appropriated from the general fund to the commissioner
of employment and economic development for grants under the women of color business
development program under section 1. This is a onetime appropriation and is available
until expended. Up to ... percent of grant awards to eligible organizations under section 1,
may be used for administrative expenses directly related to the business development loan
program, including, but not limited to, hiring staff to implement the loan program.
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