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SF 3221

as introduced - 91st Legislature (2019 - 2020) Posted on 02/18/2020 08:48am

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

Current Version - as introduced

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A bill for an act
relating to economic development; forgiving loans under the Lake Mille Lacs area
economic relief program; amending Laws 2016, chapter 189, article 7, section 46,
subdivision 2.

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

Section 1.

Laws 2016, chapter 189, article 7, section 46, subdivision 2, is amended to
read:


Subd. 2.

Available relief.

(a) The economic relief program established under this section
may include grants or loans as provided in this section to the extent that funds are available.
Prior to awarding a grant to Mille Lacs County for the relief program under this section:

(1) the county must develop criteria, procedures, and requirements for:

(i) determining eligibility for assistance;

(ii) the duration, terms, underwriting and security requirements, and repayment
requirements for loans;

(iii) evaluating applications for assistance;

(iv) awarding assistance; and

(v) administering the grant and loan program authorized under this section;

(2) the county must submit its criteria, procedures, and requirements developed pursuant
to clause (1) to the commissioner of employment and economic development for review;
and

(3) the commissioner must approve the criteria, procedures, and requirements as
developed pursuant to clause (1) to be used by the county in determining eligibility for
assistance, evaluating, awarding, and administering the grant and loan program.

(b) The relief authorized under this section includes:

(1) grants not to exceed $50,000 per business. Grants may be awarded to applicants only
when the county determines that a loan is not appropriate to address the needs of the
applicant; and

(2) loans, with or without interest, and deferred or forgivable loans. The maximum loan
amount under this subdivision is $100,000 per business. The lending criteria adopted by
the county for loans under this subdivision must:

(i) specify that an entity receiving a deferred or forgivable loan must remain in the local
community a minimum of five years after the date of the loan. The maximum loan deferral
period must not exceed five years from the date the loan is approveddeleted text begin. The maximum amount
of a loan that may be forgiven must not exceed 50 percent of the principle amount and may
be forgiven only if the business has remained in operation in the community for at least ten
years after the loan is approved
deleted text end; and

(ii) require submission of a business plan for continued operation until the walleye fishing
resource recovers. The plan must document the probable success of the applicant's business
plan and probable success in repaying the loan according to the terms established for the
loan program; and

(3) tourism promotion grants to the Mille Lacs Tourism Council.

(c) All loan repayment funds under this subdivision must be paid to the commissioner
of employment and economic development for deposit in the Minnesota investment fund
disaster contingency account under Minnesota Statutes, section 116J.8731.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively from July 1, 2016.
new text end

Sec. 2. new text beginMILLE LACS LOAN FORGIVENESS.
new text end

new text begin The commissioner of employment and economic development must request that Mille
Lacs County forgive all outstanding loans issued under Minnesota Laws 2016, chapter 189,
article 7, section 46. The commissioner shall modify as necessary any terms of the grant to
Mille Lacs County that was made under that section.
new text end