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SF 4481

1st Engrossment - 91st Legislature (2019 - 2020) Posted on 05/11/2020 10:50am

KEY: stricken = removed, old language.
underscored = added, new language.
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3.11

A bill for an act
 relating to economic development; modifying small business loan transfers;
appropriating money for emergency small business grants and loans; amending
Laws 2020, chapter 71, article 1, section 11.

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

Section 1.

Laws 2020, chapter 71, article 1, section 11, is amended to read:


Sec. 11. TRANSFERS; SMALL BUSINESS EMERGENCY LOAN PROGRAM.

Notwithstanding Minnesota Statutes, sections 116J.423 and 116J.8731, in fiscal year
2020, the following amounts are transferred to the small business emergency loan account
in the special revenue fund under Minnesota Statutes, section 116M.18, subdivision 9:

(1) $20,000,000 from the special revenue fund account of the Minnesota 21st century
fund under Minnesota Statutes, section 116J.423, subdivision 1; and

(2) $10,000,000 from the Minnesota investment revolving loan account under Minnesota
Statutes, section 116J.8731, subdivision 5, in the special revenue fund.

Transferred amounts are appropriated to the commissioner of employment and economic
development to make loans as set forth in Governor's Executive Order 20-15, Providing
Immediate Relief to Small Businesses During the COVID-19 Peacetime Emergency. new text begin Any
business may receive a loan through the small business emergency loan program at the
discretion of the commissioner of employment and economic development. The business
must demonstrate to the lender that it was directly and adversely affected by the COVID-19
peacetime emergency under Executive Order 20-04, 20-08, or 20-09. new text end All loan repayments
are credited proportionately to the accounts from which the loan amounts were originally
transferred. Any amounts remaining in the small business emergency loan account that are
unexpended and unobligated at the close of the fiscal year cancel proportionately to the
accounts from which the amounts were originally transferred.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
 new text end

Sec. 2. new text begin SMALL BUSINESS EMERGENCY LOAN PROGRAM; APPROPRIATION.
new text end

new text begin $20,000,000 is appropriated in fiscal year 2020 from the general fund to the commissioner
of employment and economic development for small business emergency loans pursuant
to Laws 2020, chapter 71, article 1, section 11.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
 new text end

Sec. 3. new text begin SMALL BUSINESS RELIEF GRANTS; APPROPRIATION.
new text end

new text begin (a) $10,000,000 in fiscal year 2020 is appropriated from federal funds received by the
state of Minnesota under the Coronavirus Aid, Relief, and Economic Security Act, Public
Law 116-136, to the commissioner of employment and economic development for grants
under paragraph (c). The appropriation in this paragraph is reduced by any amount
appropriated in paragraph (b). Funds are available until December 31, 2020.
 new text end

new text begin (b) If the appropriation in paragraph (a) is not made before May 1, 2020, then $10,000,000
in fiscal year 2020 is appropriated from the general fund to the commissioner of employment
and economic development for grants under paragraph (c). Funds are available until
December 31, 2020.
 new text end

new text begin (c) Money appropriated under paragraph (a) or (b) shall be used to make grants as
follows:
 new text end

new text begin (1) $5,000,000 to the Minnesota Initiative Foundations to serve businesses in greater
Minnesota; and
 new text end

new text begin (2) $5,000,000 to serve businesses in the seven-county metropolitan area.
 new text end

new text begin (d) Grant recipients under paragraph (c) shall use funds to make grants of up to $10,000
to individual businesses that:
 new text end

new text begin (1) are located in the state of Minnesota;
 new text end

new text begin (2) employ the equivalent of ten full-time workers or less; and
 new text end

new text begin (3) can demonstrate financial hardship as a result of the COVID-19 outbreak.
 new text end

new text begin (e) Notwithstanding paragraph (d), for each of the grants in paragraph (c), $1,000,000
shall be used to make grants of up to $10,000 to individual businesses that:
 new text end

new text begin (1) are located in the state of Minnesota;
 new text end

new text begin (2) employ the equivalent of five full-time workers or less;
 new text end

new text begin (3) have a combination of assets and annual sales for the most recent calendar year less
than $250,000; and
 new text end

new text begin (4) can demonstrate financial hardship as a result of the COVID-19 outbreak.
 new text end

new text begin Grant funds received by individual businesses shall be used for working capital to support
payroll expenses, rent, mortgage payments, utility bills, and other similar expenses that
occur in the regular course of business.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
 new text end