2002 Minnesota Statutes

     116J.617 Tourism loan program. 

    Subdivision 1.    Establishment.  The commissioner may 
 establish a tourism revolving loan program and a tourism 
 guarantee loan program to provide loans, participate in loans, 
 or guarantee loans to resorts, campgrounds, lodging facilities, 
 and other tourism-related businesses.  The commissioner shall 
 work with financial institutions in making or participating in 
 loans or guaranteeing loans under this section. 

    Subd. 2.    Eligible borrower.  To receive a loan under 
 this section, the borrower must be a sole proprietorship, 
 partnership, or corporation engaged in a tourism-related 
 business or other entity that is defined by the standard 
 industrial classification codes of 7011 and 7033 as set out in 
 the Code of Federal Regulations, title 13, section 121.2.  An 
 eligible borrower under this section must maintain the business 
 or other entity as a tourism-related entity as defined by this 
 subdivision during the term of the loan.  An eligible borrower 
 may not receive a loan or loan guarantee under this section if 
 the borrower has received a tourism-related loan, loan 
 participation, or guarantee made by the state in the past 36 
 months. 

    Subd. 3.    Eligible loan.  The maximum loan made or 
 participated in under this section may not be for more than 50 
 percent of the total cost of the project.  Loan proceeds may be 
 used for the following purposes:  acquisition of an existing 
 building, building construction and improvement, land site 
 improvement, equipment, other construction costs, and 
 engineering costs.  Project-related expenditures made more than 
 30 days before an application may not be financed by a loan 
 made, guaranteed, or participated in under this section. 

    Subd. 4.    Loan terms.  The maximum term of a loan 
 made, guaranteed, or participated in under this section may not 
 exceed the useful life of the real property or 80 percent of the 
 useful life of the equipment or machinery, or the following 
 limits, whichever is less: 

    (1) ten years for land, building, or other real property; 

    (2) five years for equipment or machinery; or 

    (3) a weighted average of the limits under clauses (1) and 
 (2) for loans made, guaranteed, or participated in for a 
 combination of real property and equipment or machinery. 

    The commissioner may establish interest rates for loans 
 made under this section.  All loans made must be secured by 
 collateral. 

    Subd. 5.    Tourism loan account.  The tourism loan 
 account is created in the special revenue fund.  The fund 
 consists of money appropriated or transferred to the account and 
 interest collected through the tourism revolving loan program, 
 and gifts, donations, and bequests made to the account.  Money 
 in the account is appropriated to the commissioner for purposes 
 of this section.  Fees collected through the tourism revolving 
 loan program must be credited to the general fund. 

    Subd. 6.    Investment interest.  All interest and 
 profits accruing from the investment of money from the tourism 
 loan account are credited to the account, and any loss incurred 
 in the principal of the investments of the account is debited to 
 the account. 

    HIST: 1989 c 335 art 1 s 139; 1993 c 369 s 46