SF 3229

1st Engrossment - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to economic development; establishing an investment fund to
provide financing to certain greater Minnesota businesses; authorizing certain
investments; appropriating money; 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.635] GREATER MINNESOTA BUSINESS DEVELOPMENT
INVESTMENTS.
new text end

new text begin Subdivision 1. new text end

new text begin Investment fund. new text end

new text begin The commissioner shall establish an investment
fund from which investments can be made in qualified organizations under this section.
The commissioner shall return to the investment fund all funds repaid by qualifying
organizations under subdivision 4 and shall use these funds for subsequent reinvestment in
qualified organizations.
new text end

new text begin Subd. 2. new text end

new text begin Qualified organizations. new text end

new text begin The commissioner is authorized to make
investments in organizations that are established pursuant to section 116J.415 and provide
business financing to greater Minnesota businesses.
new text end

new text begin Subd. 3. new text end

new text begin Authorized investments. new text end

new text begin The commissioner shall invest funds in the form
of loans to provide capital for business lending and investment by qualified organizations.
new text end

new text begin Subd. 4. new text end

new text begin Investment authorized. new text end

new text begin The commissioner may make an investment in a
qualified organization only if the investment conforms to the following terms:
new text end

new text begin (1) The qualified organization provides collateral or security for not less than 100
percent of the funds invested in the organization.
new text end

new text begin (2) The investment is made in the form of a loan for a term of ten years, at an
interest rate of one percent.
new text end

new text begin (3) During the ten-year term of a loan, the qualified organization shall make
interest-only payments.
new text end

new text begin (4) At the end of the ten-year term of the loan, the qualified organization is required
to make a payment of the entire principal amount of the initial loan.
new text end

new text begin (5) The state investment by the commissioner in a single qualified organization may
not exceed $2,000,000.
new text end

Sec. 2. new text begin APPROPRIATION.
new text end

new text begin $12,000,000 is appropriated from the general fund to the commissioner of
employment and economic development to provide loans authorized under section 1.
new text end