SF 861

as introduced - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to economic development; creating the Upper 
  1.3             Red Lake business loan program; appropriating money. 
  1.4   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.5      Section 1.  [UPPER RED LAKE BUSINESS LOAN PROGRAM.] 
  1.6      The commissioner of trade and economic development may make 
  1.7   loans to businesses in the Upper Red Lake area that have been 
  1.8   severely affected by the significant decline of the walleye 
  1.9   fishing resource in Upper Red Lake.  The loans may only be made 
  1.10  to businesses that operated in 1998.  A business must submit an 
  1.11  application to the commissioner on forms provided by the 
  1.12  commissioner.  The application must include a business plan for 
  1.13  continued operation, with the assistance of the loan, until the 
  1.14  walleye fishing resource recovers.  The commissioner shall 
  1.15  allocate available loan funds to a business based on the 
  1.16  commissioner's evaluation of the probable success of its 
  1.17  business plan.  A loan shall be for a maximum amount of $75,000 
  1.18  and a duration of ten years from the date of the loan and shall 
  1.19  be interest free.  Repayment of a loan in monthly payments of 
  1.20  1/120 of the original principal amount must begin no later than 
  1.21  one year after walleye fishing on Upper Red Lake is allowed by 
  1.22  the department of natural resources.  Any principal balance 
  1.23  remaining at the end of the ten-year period shall be forgiven if 
  1.24  the business continues in operation for the ten-year period.  
  2.1   Loan repayments shall be deposited in the general fund. 
  2.2      Sec. 2.  [UPPER RED LAKE BUSINESS LOAN PROGRAM; 
  2.3   APPROPRIATION.] 
  2.4      $250,000 is appropriated to the commissioner of trade and 
  2.5   economic development from the general fund in fiscal year 2000 
  2.6   for the purpose of the Upper Red Lake business loan program.