Minnesota Senate Bill SF3167

Minnesota 2023-2024 Regular Session

• Introduced: 3/30/23
• Refer: 3/30/23

Caption

Fortis Capital revolving loan fund appropriation

Impact

The implementation of the bill will allow Fortis Capital to partner with private sector lenders and other non-state funding sources, thereby maximizing the efficacy of the revolving loan fund. This synergistic approach is designed to amplify the impact of state appropriations on local economies, which can ultimately lead to job creation and increased economic stability in communities that have historically struggled with access to capital.

Summary

SF3167 is a bill intended to enhance economic development in the state of Minnesota by appropriating funding for a revolving loan fund managed by Fortis Capital, a nonprofit organization. The bill allocates $12,000,000 from the general fund for fiscal year 2024. This funding aims to provide risk-mitigating capital for commercial development activities, specifically targeting underserved communities and entrepreneurs from disadvantaged backgrounds. The establishment of this fund is seen as a means to stimulate economic growth by facilitating greater access to financial resources.

Contention

While the bill promotes economic opportunity, there may be concerns regarding the allocation of funds and the effectiveness of such programs. Some legislators may question the sustainability of relying on nonprofit organizations to manage public money and the potential for the funds to be misallocated or insufficiently monitored. Furthermore, stakeholders may express differing views on the appropriate criteria for determining which communities or entrepreneurs are prioritized for funding, highlighting the complexity of balancing equity with fiscal responsibility.