SF 1764

1st Engrossment - 86th Legislature (2009 - 2010) Posted on 02/09/2010 02:23am

A bill for an act
relating to economic development; creating a Minnesota business venture capital
program; proposing coding for new law in Minnesota Statutes, chapter 116J.

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

Section 1.

new text begin [116J.432] MINNESOTA BUSINESS VENTURE CAPITAL
PROGRAM.
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new text begin Subdivision 1. new text end

new text begin Purpose. new text end

new text begin The purpose of the Minnesota business venture capital
program is to promote entrepreneurship in this state, to foster small businesses that meet
some or all of the eligibility criteria listed in subdivision 5, and to create jobs. The
Department of Employment and Economic Development and local government units shall
work together to ensure that the eligibility criteria set forth in subdivision 5 are applied
when implementing the program.
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new text begin Subd. 2. new text end

new text begin Establishment. new text end

new text begin The Minnesota business venture capital program is
established in the Department of Employment and Economic Development. The
commissioner shall develop and implement the program to make competitive grants
available to local government units to provide low and no-interest loans to eligible
businesses.
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new text begin Subd. 3. new text end

new text begin Definitions. new text end

new text begin For purposes of this section:
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new text begin (1) "applicant" means a local government unit;
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new text begin (2) "commissioner" means the commissioner of employment and economic
development;
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new text begin (3) "eligible business" means a Minnesota resident or an organization with its
principle place of business in Minnesota that intends to start a new business or expand an
existing business based on an identified, documented business opportunity; and
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new text begin (4) "local government unit" means a county, city, town, special district, or other
political subdivision or public corporation.
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new text begin Subd. 4. new text end

new text begin Applications. new text end

new text begin An applicant shall prepare and submit to the commissioner a
written proposal detailing how the applicant will implement the business venture capital
program to meet the purpose of the program as provided in subdivision 1 and subject to
subdivision 5.
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new text begin Subd. 5. new text end

new text begin Eligibility criteria. new text end

new text begin When awarding grants the commissioner shall
consider whether the applicant's proposal is:
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new text begin (1) located in an area or a building that is in need of redevelopment or restoration;
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new text begin (2) utilizes federal stimulus money resulting from the American Recovery and
Reinvestment Act of 2009;
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new text begin (3) assists with meeting Minnesota's renewable energy standards as set forth in
section 216B.1691;
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new text begin (4) reduces greenhouse gases and dependency on fossil fuels;
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new text begin (5) assists resident entrepreneurs and businesses to initiate or expand in a manner
that creates sustainable living wage jobs that are compatible with the resources available
in an area;
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new text begin (6) supports research and development of innovative, nontraditional uses of
resources available in an area;
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new text begin (7) integrates support services and businesses in a central location; and
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new text begin (8) reaches out to certain populations that are underrepresented in the workforce.
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new text begin Subd. 6. new text end

new text begin Additional considerations. new text end

new text begin Other factors to be considered by the
commissioner in awarding grants to applicants include:
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new text begin (1) the rate of unemployment in the applicant's area of jurisdiction; and
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new text begin (2) the average household income in the applicant's area of jurisdiction.
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new text begin These factors must be evaluated using the most current data available.
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Sec. 2. new text begin EFFECTIVE DATE.
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new text begin Section 1 is effective the day following final enactment.
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