Minnesota Administrative Rules

4305.0050 ELIGIBLE USES OF LOAN FUNDS.

Subpart 1.

In general.

The agency shall make interest-free loans to eligible businesses that sustain or are likely to sustain a substantial economic injury resulting from an essential employee being called to active duty according to parts 4305.0010 to 4305.0080 and Minnesota Statutes, section 116J.996.

Subp. 2.

Permitted uses of loan.

An eligible business must use a loan under the program to:

A.

meet its obligations as they mature;

B.

pay its ordinary and necessary operating expenses as defined by United States Code, title 26, section 162, and Code of Federal Regulations, title 26, section 1.162-1; or

C.

manufacture, produce, market, or provide a product or service ordinarily manufactured, produced, marketed, or provided by the eligible business.

Subp. 3.

Prohibited uses of loan funds.

An eligible business may not use loan funds for the following:

A.

charitable contributions and gifts;

B.

illegal payments to government officials or employees;

C.

illegal payments under any Minnesota or federal law;

D.

kickbacks, rebates, and bribes under Medicare and Medicaid;

E.

lobbying and political expenditures;

F.

fines and penalties due or paid to a government for the violation of any civil or criminal law;

G.

payment of taxes;

H.

treble damage payments under the antitrust laws; or

I.

employee remuneration exceeding $1,000,000.

Statutory Authority:

MS s 14.389; 116J.996

History:

33 SR 2052

Published Electronically:

September 4, 2013