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SF 12

as introduced - 91st Legislature, 2020 5th Special Session (2020 - 2020) Posted on 10/13/2020 07:49am

KEY: stricken = removed, old language.
underscored = added, new language.
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Current Version - as introduced

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A bill for an act
 relating to economic development; establishing a forgivable loan program for
remote recreational businesses; requiring a report; appropriating money.

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

Section 1. FORGIVABLE LOAN PROGRAM FOR REMOTE RECREATIONAL
BUSINESSES.

Subdivision 1.

Establishment.

The commissioner shall establish a loan program to make
forgivable loans to eligible remote recreational businesses that experienced a loss in revenue
that is greater than 50 percent during the period between March 1, 2020, and September 7,
2020, as compared with the same period during the previous year.

Subd. 2.

Definitions.

(a) For the purposes of this section, the terms defined in this
subdivision have the meanings given.

(b) "Commissioner" means the commissioner of employment and economic development.

(c) "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 1, 2020; and

(2) show that the closure of the United States and Canadian border restricted the ability
of American customers to access the location of the remote recreational business.

Subd. 4.

Application.

(a) The commissioner shall develop forms and procedures for
soliciting and reviewing applications for loans under this section.

(b) Loans shall be made by December 30, 2020.

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 2019, 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. The
commissioner 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, 2021, the commissioner 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.

Sec. 2. APPROPRIATION; FORGIVABLE LOAN PROGRAM FOR REMOTE
RECREATIONAL BUSINESSES.

$5,000,000 in fiscal year 2021 is appropriated from the coronavirus relief fund to the
commissioner of employment and economic development for the forgivable loan program
for remote recreational businesses under section 1. This is a onetime appropriation. Funds
are available until December 30, 2020.

EFFECTIVE DATE.

This section is effective the day following final enactment.