2006 Minnesota Statutes

116O.06 FINANCIAL ASSISTANCE.
    Subdivision 1. Financial assistance; types. The corporation may provide financial
assistance to individuals, sole proprietorships, partnerships, corporations, other business entities,
or nonprofit organizations that have (1) received research assistance from a corporation research
facility or as a result of a research grant under section 116O.09, subdivision 4, or 116O.11;
or (2) received favorable review through a peer review process established under guidelines
developed under section 116O.10, subdivision 2. Financial assistance includes, but is not limited
to, loan guarantees or insurance, direct loans, and interest subsidy payments. The corporation
may participate in loans by purchasing from a lender up to 50 percent of each loan. Financial
assistance under this section is for assisting in the financing of a business's debt financing, energy
conservation, product development financing, or working capital needs.
    Subd. 2. Equity investments. The corporation may acquire an interest in a product or
a private business entity, except that the corporation may not acquire an interest in a business
entity engaged in a trade or industry whose profits are directly regulated by the commissioner
of commerce or the Public Utilities Commission. The corporation may enter into joint venture
agreements with other private corporations to promote economic development and job creation.
    Subd. 3. Minnesota Technology, Inc. Finance Authority. The board may designate the
Minnesota Technology, Inc. Finance Authority to provide financial assistance. The authority,
if established, consists of seven members, five of whom are members of the general public
appointed by the board with experience in business development, finance, banking, or venture
capital. The president of the corporation and one board member must be members of the authority.
Members of the authority shall serve without compensation but shall receive necessary and actual
expenses while engaged in the business of the corporation.
    Subd. 4. Standards. The board may establish minimum interest rates, security requirements,
restrictions on the amount of the corporation's financial participation in a project, and other
financial standards the board determines necessary to establish in providing financial assistance.
    Subd. 5. Preference. In providing financial assistance, the corporation must give preference
to individuals, sole proprietorships, partnerships, corporations, other business entities, or
organizations that are starting or expanding their operations in greater Minnesota.
History: 1987 c 386 art 2 s 6; 1988 c 686 art 1 s 68; 1989 c 335 art 1 s 172,173; 1990 c 426
art 2 s 1; 1991 c 322 s 19; 1993 c 163 art 2 s 6; 1Sp2001 c 4 art 6 s 18