HF 4742

as introduced - 92nd Legislature (2021 - 2022) Posted on 04/04/2022 03:39pm

A bill for an act
relating to economic development; modifying the forgivable loan program for
remote recreational businesses; amending Laws 2021, First Special Session chapter
10, article 2, section 24.

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

Section 1.

Laws 2021, First Special Session chapter 10, article 2, section 24, is amended
to read:

Sec. 24. FORGIVABLE LOAN PROGRAM FOR REMOTE RECREATIONAL
BUSINESSES.

Subdivision 1.

Establishment.

Lake of the Woods County shall establish a loan program
to make forgivable loans to eligible remote recreational businesses that experienced a loss
in revenue that is greater than 30 percent during the period between March 15, 2020 2021,
and March 15, 2021 2022, as compared with the previous year March 15, 2019, and March
15, 2020.

Subd. 2.

Definition.

For the purposes of this section, "remote recreational business"
means a business in the contiguous United States that is:

(1) a small business concern as defined under section 3 of the Small Business Act, United
States Code, title 15, section 632, operating in the recreational industry;

(2) located within 75 miles of the United States and Canadian border; and

(3) only accessible by land via Canada.

Subd. 3.

Eligibility.

To be eligible for a forgivable loan, a remote recreational business
must:

(1) have been in operation on March 15, 2020 2021;

(2) show that the closure and ongoing COVID-19-related requirements of the United
States and Canadian border restricted the ability of American customers to access the location
of the remote recreational business; and

(3) not have received a grant under the Main Street COVID-19 relief grant program.

Subd. 4.

Application.

(a) Lake of the Woods County shall develop forms and procedures
for soliciting and reviewing applications for loans under this section.

(b) Loans shall be made before April 1, 2022 December 30, 2022. Any funds not spent
by April 1, 2022 2023, must be returned to the state general fund.

(c) If there are insufficient funds to fund all claims in full, the county shall distribute
funds on a prorated basis.

Subd. 5.

Maximum loan amount.

The maximum loan amount shall be equal to 75
percent of the remote recreational business's gross annual receipts for fiscal year years 2020
and 2021, not to exceed $500,000 per eligible remote recreational business.

Subd. 6.

Forgiveness.

Loans are forgiven for a remote recreational business if the
business remains in operation for at least one year after the date of the loan. Lake of the
Woods County shall forgive 100 percent of the value of a loan received less the amount the
borrower received from:

(1) any other loan forgiveness program, including any program established under the
CARES Act, Public Law 116-136; and

(2) an advance received under section 1110 of the CARES Act, United States Code, title
15, section 9009.

Subd. 7.

Report to legislature.

By January 15 April 30, 2023, Lake of the Woods County
shall report to the legislative committees with jurisdiction over economic development
policy and finance on the loans provided to remote recreational businesses under this section.

EFFECTIVE DATE.

This section is effective the day following final enactment.