CHAPTER 116S. MINNESOTA BUSINESS FINANCE, INC.
Subdivision 1. Applicability.
The definitions in this section apply to this chapter.
Subd. 2. Board.
"Board" means the Board of Directors of Minnesota Business Finance, Inc.
Subd. 3. Corporation.
"Corporation" means Minnesota Business Finance, Inc.
History: 1993 c 177 s 2
116S.02 CORPORATION; MEMBERS; BOARD OF DIRECTORS; POWERS.
Subdivision 1. Public corporation.
Minnesota Business Finance, Inc. is a public corporation
of the state and is not subject to the laws governing a state agency except as provided in this
chapter. The business of the corporation must be conducted under the name "Minnesota Business
Subd. 2. Purpose.
The purpose of the corporation is to engage in economic development
activities throughout Minnesota and to provide access to capital for commercial borrowers
throughout Minnesota primarily through the Small Business Administration section 503 program,
United States Code, title 15, section 697, as amended.
Subd. 3. Board of directors.
The corporation is governed by a board of 14 directors. The
membership terms, compensation, removal, and filling of vacancies of public members of
the board are governed by section
except that the terms of the public members are
concurrent. The membership of the board consists of the commissioner of employment and
economic development or the commissioner's designee and 13 members who are:
(1) involved in economic development within the state of Minnesota;
(2) selected by the membership of the corporation in accordance with section
(3) representative of government, private-sector lending institutions, community
organizations, and business organizations as described in Code of Federal Regulations, title 13,
section 108.503-1(b)(2), as amended.
Subd. 4. Bylaws.
The board of directors shall adopt bylaws and publish the bylaws and
amendments to the bylaws in the State Register.
Subd. 5. Places of business.
The board shall locate and maintain the corporation's places of
business within the state.
Subd. 6. Meetings and actions of the board.
(a) The board shall meet at least twice a
year and may hold additional meetings upon giving notice in accordance with the bylaws of the
corporation. Except as provided in subdivision 7, board meetings are subject to chapter 13D.
(b) A conference among directors by any means of communication through which the
directors may simultaneously hear each other during the conference constitutes a board meeting if
the number of directors participating in the conference is sufficient to constitute a quorum for the
meeting. Participation in a meeting by that means constitutes presence in person at the meeting.
Subd. 7. Closed meetings; recording.
The board of directors may by a majority vote in
a public meeting decide to hold a closed meeting for purposes of discussing data described in
subdivision 8 or security information, trade secret information, or labor relations information,
as defined in section
13.37, subdivision 1
. The time and place of the closed meeting must be
announced at the public meeting. A written roll of members present at the closed meeting must be
made available to the public after the closed meeting. The proceedings of a closed meeting must
be tape recorded. The data on the tape are nonpublic data or private data on individuals as defined
13.02, subdivision 9
or 12, whichever is applicable.
Subd. 8. Application and investigative data.
Financial data, statistics, and information
furnished to the corporation in connection with assistance or proposed assistance, including credit
reports, financial statements, statements of net worth, income tax returns, either personal or
corporate, and any other business and personal financial records are private data with regard to
data on individuals under section
13.02, subdivision 12
, or as nonpublic data with regard to data
not on individuals under section
13.02, subdivision 9
Subd. 9. Conflict of interest.
A director, employee, or officer of the corporation may not
participate in or vote on a decision of the board relating to an organization in which the director has
either a direct or indirect financial interest or a conflict of interest as described in section
Subd. 10. Tort claims.
The corporation is a state agency for purposes of section
Subd. 11. Data practices and records management.
The corporation is subject to chapter
13 and sections
History: 1993 c 177 s 3; 1Sp2003 c 4 s 1
116S.03 CORPORATE PERSONNEL.
Subdivision 1. Generally.
The board shall appoint and set the compensation for the executive
director, who serves as chief executive officer of the corporation. The executive director's
compensation may not exceed 95 percent of the salary of the governor set under section
The board may designate the executive director as its general agent. Subject to the approval of the
board, the executive director shall employ staff consultants and other agents necessary to carry
out the mission of the corporation.
Subd. 2. Status of employees.
Employees, officers, and directors of the corporation are not
state employees, but are covered by section
and, at the option of the board, may participate
in the state retirement plan, the state deferred compensation plan for employees in the unclassified
service, and an insurance plan administered by the commissioner of employee relations.
History: 1993 c 177 s 4
116S.04 POWERS OF CORPORATION.
Subdivision 1. General corporate powers.
(a) The corporation has the powers granted to a
nonprofit corporation by section
, except as otherwise provided in this chapter.
(b) Except as specified in section
116S.02, subdivision 10
, the state is not liable for the
obligations of the corporation.
applies to this chapter and the corporation in the same manner that it
applies to business corporations established under chapter 317A.
(d) The corporation is a state agency for purposes of the following accounting and budgeting
(1) financial reports and other requirements under section
(2) the state budget system under sections
(3) the state allotment and encumbrance, and accounting systems under sections
subdivisions 2, 3, 4, and 5
16A.15, subdivisions 2 and 3
(4) indirect costs under section
Subd. 2. Duties.
(a) The corporation must qualify as a state development company for
purposes of United States Code, title 15, section 697, as amended, and must comply with
applicable Small Business Administration organizational, operational, regulatory, and reporting
(b) The corporation must also comply with the requirements of the Small Business
Administration's section 504 loan program, United States Code, title 15, section 697a, as amended.
Subd. 3. Membership.
The governor shall appoint at least 25 members of the corporation,
who must be representatives of government, private-sector lending institutions, community
organizations, and business organizations, as described in Code of Federal Regulations, title
13, section 108.503-1(d), as amended. The membership shall select the members of the board
of directors in accordance with section
116S.02, subdivision 3
. The board may submit names of
persons for consideration by the governor in filling vacancies in the membership under this
History: 1993 c 177 s 5
116S.05 REGISTERED NAME.
, the secretary of state shall register the name "Minnesota
Business Finance, Inc." on behalf of the corporation.
History: 1993 c 177 s 6
116S.06 MINNESOTA BUSINESS FINANCE ACCOUNT.
The Minnesota business finance account is an account in the special revenue fund. Money in
the account not needed for the immediate purposes of the corporation may be invested by the
state Board of Investment in any way authorized by section
. Money in the account is
appropriated to the corporation to be used as provided in this chapter.
History: 1993 c 177 s 7
The corporation is subject to the auditing requirements of sections
History: 1993 c 177 s 8
116S.08 ANNUAL REPORTS.
The board shall submit annual reports to the chairs of the Committee on Commerce and
Economic Development of the house of representatives and the Committee on Jobs, Energy and
Community Development of the senate and to the Small Business Administration on the activities
of the corporation. The board shall supply more frequent reports if requested.
History: 1993 c 177 s 9
In the event of dissolution of the corporation for any reason, the state, upon action by the
governor, and after consultation with the Legislative Advisory Commission, may require the
liquidation of all holdings and investments and the return of the proceeds of that liquidation
and any wholly owned assets of the corporation to the state, in exchange for the assumption of
all outstanding obligations of the corporation.
If the corporation is dissolved, or certain of its functions transferred to another entity, the
assets and liabilities and property associated with the dissolved or transferred functions must
return to the state or to the entity designated by laws.
History: 1993 c 177 s 10
116S.10 SUCCESSOR STATUS.
(a) Minnesota Business Finance, Inc. is the legal successor in all respects of Opportunities
Minnesota Incorporated established under section
, and all assets and liabilities are
transferred to it. The board of directors shall promptly upon appointment amend the relevant
documents and file them with the secretary of state.
(b) The balance of the funds in the special revenue fund account currently allocated to
Opportunities Minnesota Incorporated are transferred to the Minnesota business finance account
for the purposes of sections
13.598, subdivision 3
History: 1993 c 177 s 11; 1999 c 227 s 22
116S.11 RELATIONSHIP TO OTHER CERTIFIED DEVELOPMENT COMPANIES.
The corporation must refer all Small Business Administration 504 projects to a local certified
development company if a local certified development company serves the area where the project
is located. If the local certified development company is unable to assist a business it must inform
the business that it can apply for the project through the corporation.
History: 1993 c 177 s 12