HF 836

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; providing for 
  1.3             technical assistance and loan administration 
  1.4             assistance for microenterprise loans; appropriating 
  1.5             money; proposing coding for new law in Minnesota 
  1.6             Statutes, chapter 116J. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  [116J.875] [MICROENTERPRISE ENTREPRENEURIAL 
  1.9   ASSISTANCE.] 
  1.10     Subdivision 1.  [TECHNICAL ASSISTANCE; LOAN 
  1.11  ADMINISTRATION.] The commissioner of trade and economic 
  1.12  development shall make grants to nonprofit organizations to 
  1.13  provide technical assistance to individuals with entrepreneurial 
  1.14  plans that require microenterprise loans in an amount ranging 
  1.15  from approximately $1,000 to $25,000, and for loan 
  1.16  administration costs related to those microenterprise loans.  
  1.17  Microenterprise is a small business which employs under five 
  1.18  employees plus the owner and requires under $25,000 to start. 
  1.19     Subd. 2.  [GRANT ELIGIBILITY AND ALLOCATION.] Nonprofit 
  1.20  organizations must apply for grants under this section following 
  1.21  procedures established by the commissioner.  To be eligible for 
  1.22  a grant, an organization must demonstrate to the commissioner 
  1.23  that it has the appropriate expertise.  The commissioner shall 
  1.24  give preference for grants to organizations that target 
  1.25  nontraditional entrepreneurs such as women, members of a 
  1.26  minority, low-income individuals, or persons seeking work who 
  2.1   are currently on or recently removed from welfare assistance. 
  2.2      An application must include: 
  2.3      (1) the local need for microenterprise support; 
  2.4      (2) proposed criteria for business eligibility; 
  2.5      (3) proposals for identifying and serving eligible 
  2.6   businesses; 
  2.7      (4) a description of technical assistance to be provided to 
  2.8   eligible businesses; 
  2.9      (5) proposals to coordinate technical assistance with 
  2.10  financial assistance; and 
  2.11     (6) a demonstration of ability to collaborate with other 
  2.12  agencies including educational and financial institutions. 
  2.13     Subd. 3.  [GRANT EVALUATIONS.] Grant recipients must report 
  2.14  to the commissioner by February 1 in each of the two years 
  2.15  succeeding the year of receipt of the grant.  The report must 
  2.16  detail the number of customers served, the number of businesses 
  2.17  started, stabilized, or expanded, the number of jobs created and 
  2.18  retained, and business success rates.  The commissioner shall 
  2.19  report to the legislature on the microenterprise entrepreneurial 
  2.20  assistance.  The report shall contain an evaluation of the 
  2.21  results, recommendations to continue or change the program, and 
  2.22  a suggested level of funding. 
  2.23     Sec. 2.  [116J.876] [SMALL BUSINESS; ELECTRONIC ACCESS TO 
  2.24  INTERNATIONAL MARKETS.] 
  2.25     The commissioner shall develop a plan for enabling small 
  2.26  businesses to gain electronic access to international markets 
  2.27  through mechanisms that may include electronic trade points. 
  2.28     Sec. 3.  [APPROPRIATION.] 
  2.29     $....... is appropriated from the general fund for the 
  2.30  biennium ending June 30, 1999, to the commissioner of trade and 
  2.31  economic development for the purpose of section 1.  Of this 
  2.32  amount, $....... is for technical assistance and $....... is for 
  2.33  loan administration.  Technical assistance grants must be 
  2.34  matched on a one-to-one basis by nonstate funds.