HF 3205

as introduced - 80th Legislature (1997 - 1998) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to economic development; changing the maximum 
  1.3             loan amount for the challenge grant program; amending 
  1.4             Minnesota Statutes 1996, section 116J.415, subdivision 
  1.5             5. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 1996, section 116J.415, 
  1.8   subdivision 5, is amended to read: 
  1.9      Subd. 5.  [LOAN CRITERIA.] The following criteria apply to 
  1.10  loans made under the challenge grant program:  
  1.11     (1) loans must be made to businesses that are not likely to 
  1.12  undertake a project for which loans are sought without 
  1.13  assistance from the challenge grant program; 
  1.14     (2) a loan must be used for a project designed principally 
  1.15  to benefit low-income persons through the creation of job or 
  1.16  business opportunities for them; 
  1.17     (3) the minimum loan is $5,000 and the maximum 
  1.18  is $100,000 $200,000; 
  1.19     (4) a loan may not exceed 50 percent of the total cost of 
  1.20  an individual project; 
  1.21     (5) a loan may not be used for a retail development 
  1.22  project; and 
  1.23     (6) a business applying for a loan, except a 
  1.24  microenterprise loan under subdivision 6, must be sponsored by a 
  1.25  resolution of the governing body of the local governmental unit 
  2.1   within whose jurisdiction the project is located. 
  2.2      Sec. 2.  [EFFECTIVE DATE.] 
  2.3      Section 1 is effective the day following final enactment.