Minnesota Legislature
SF 906
as introduced - 92nd Legislature (2021 - 2022) Posted on 03/26/2021 10:11am
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A bill for an act
relating to economic development; modifying definitions for the small business
loan guarantee program; amending Minnesota Statutes 2020, section 116J.881,
subdivision 1.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2020, section 116J.881, subdivision 1, is amended to read:
Subdivision 1.
Definitions.
(a) For purposes of this section, the following terms have
the meanings given.
(b) "Borrower" means a small business receiving an eligible loan under this section.
(c) "Commissioner" means the commissioner of employment and economic development.
(d) "Eligible loan" means a loan to a small business to be used for business purposes
exclusively in Minnesota, including: machinery or equipment purchases, maintenance, or
repair; expenses related to moving into or within Minnesota; and working capital when the
working capital is secured by fixed assets when possible.
(e) "Loan guarantee" means a guarantee of deleted text begin 80deleted text end new text begin 35 new text end percent of the loan amount provided
by a QED lender. The guaranteed portion of the loan must not exceed $200,000 and may
be subordinate to other loans made by lenders in the overall financing package.
(f) "Loan guarantee trust fund" means a dedicated fund established under this section
for the purpose of compensation for defaulted loan guarantees and for program
administration.
(g) "Peacetime public health emergency" means any peacetime emergency declared by
the governor in an executive order that is related to the infectious disease known as
COVID-19.
(h) "Qualified economic development lender" or "QED lender" means a bank or other
commercial lender, a public entity, or a private nonprofit economic development organization
with not less than three years of active lending experience that provides financing to small
businesses.
(i) "Small business" means a business employing no more than the equivalent of deleted text begin 250deleted text end
new text begin 100 new text end full-time persons in Minnesota.
(j) "Subordinated loan" means a loan secured by a lien that is lower in priority than one
or more specified other liens.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end