1.1                          A bill for an act 
  1.2             relating to economic development; providing for 
  1.3             technical assistance to support microenterprise 
  1.4             development; appropriating money.  
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  [APPROPRIATION; MICROENTERPRISE ASSISTANCE.] 
  1.7      $250,000 in each year of the biennium ending June 30, 2003, 
  1.8   is appropriated from the general fund to the commissioner of 
  1.9   trade and economic development who shall make grants to 
  1.10  nonprofit organizations to provide technical assistance to 
  1.11  individuals to support the start-up and growth of 
  1.12  self-employment and microenterprise businesses.  Eligible 
  1.13  businesses are microenterprises employing under five people plus 
  1.14  the owner and requiring under $35,000 or no capital to start or 
  1.15  expand the business. 
  1.16     Sec. 2.  [GRANT ELIGIBILITY AND ALLOCATION.] 
  1.17     Nonprofit organizations must apply for grants under this 
  1.18  section following procedures established by the commissioner.  
  1.19  To be eligible for a grant, an organization must demonstrate to 
  1.20  the commissioner that it has the appropriate expertise.  The 
  1.21  commissioner shall give preference for grants to organizations 
  1.22  that target nontraditional entrepreneurs such as women, members 
  1.23  of a minority, low-income individuals, or persons seeking work 
  1.24  who are currently on or recently removed from welfare assistance.
  1.25     An application must include: 
  2.1      (1) the local need for microenterprise support; 
  2.2      (2) proposed criteria for business eligibility; 
  2.3      (3) a proposal for identifying and serving eligible 
  2.4   businesses; 
  2.5      (4) a description of technical assistance to be provided to 
  2.6   eligible businesses; 
  2.7      (5) a proposal to coordinate technical assistance with 
  2.8   financial assistance; 
  2.9      (6) demonstration of an ability to collaborate with other 
  2.10  agencies including educational and financial institutions; and 
  2.11     (7) project goals identifying the number of eligible 
  2.12  businesses to be assisted with the state funds awarded under the 
  2.13  grant. 
  2.14     Sec. 3.  [GRANT EVALUATIONS.] 
  2.15     Grant recipients must report to the commissioner by 
  2.16  February 1 in each of the two years after the year of receipt of 
  2.17  the grant.  The report must detail the number of customers 
  2.18  served; the number of businesses started, stabilized, or 
  2.19  expanded; the number of jobs created and retained; and business 
  2.20  success rates.  The commissioner shall report to the legislature 
  2.21  on the microenterprise entrepreneurial assistance.  The report 
  2.22  shall contain an evaluation of the results.