| 1 | 1 | | 1.1 A bill for an act |
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| 2 | 2 | | 1.2 relating to economic development; requiring a report; appropriating money for a |
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| 3 | 3 | | 1.3 grant to the Fursad Fund Initiative to support small businesses in greater Minnesota |
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| 4 | 4 | | 1.4 through technical assistance, capacity building, and access to capital. |
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| 5 | 5 | | 1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: |
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| 6 | 6 | | 1.6 Section 1. APPROPRIATION. |
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| 7 | 7 | | 1.7 Subdivision 1.Appropriation.$1,000,000 in fiscal year 2026 is appropriated from the |
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| 8 | 8 | | 1.8general fund to the commissioner of employment and economic development for a grant to |
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| 9 | 9 | | 1.9the Center for African Immigrants and Refugees Organization (CAIRO) to administer the |
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| 10 | 10 | | 1.10Fursad Fund Initiative. |
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| 11 | 11 | | 1.11 Subd. 2.Eligible recipients.(a) Money appropriated under this section must be used |
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| 12 | 12 | | 1.12for grants or loans to support small businesses that: |
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| 13 | 13 | | 1.13 (1) are located outside the seven-county metropolitan area as defined under Minnesota |
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| 14 | 14 | | 1.14Statutes, section 473.121, subdivision 2; |
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| 15 | 15 | | 1.15 (2) are owned by historically underserved entrepreneurs, including immigrants, refugees, |
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| 16 | 16 | | 1.16and communities of color; and |
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| 17 | 17 | | 1.17 (3) have fewer than 25 employees and demonstrate a financial need for capital investment |
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| 18 | 18 | | 1.18or technical assistance. |
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| 19 | 19 | | 1.19Technical assistance services shall be provided regardless of financing status to ensure that |
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| 20 | 20 | | 1.20all entrepreneurs receive necessary business support. |
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| 21 | 21 | | 1.21 (b) Grants or loans made under this section may be used for: |
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| 22 | 22 | | 1Section 1. |
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| 23 | 23 | | REVISOR SS/HL 25-0389902/27/25 |
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| 24 | 24 | | State of Minnesota |
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| 25 | 25 | | This Document can be made available |
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| 26 | 26 | | in alternative formats upon request |
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| 27 | 27 | | HOUSE OF REPRESENTATIVES |
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| 28 | 28 | | H. F. No. 2111 |
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| 29 | 29 | | NINETY-FOURTH SESSION |
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| 30 | 30 | | Authored by Wolgamott03/10/2025 |
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| 31 | 31 | | The bill was read for the first time and referred to the Committee on Workforce, Labor, and Economic Development Finance and Policy 2.1 (1) technical assistance and business coaching, including: (i) providing individualized |
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| 32 | 32 | | 2.2mentorship, business planning, and financial literacy training; and (ii) offering |
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| 33 | 33 | | 2.3industry-specific workshops and coaching to strengthen business operations; |
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| 34 | 34 | | 2.4 (2) capacity building for entrepreneurs, including: (i) assisting small businesses in |
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| 35 | 35 | | 2.5navigating regulatory processes and financial planning; and (ii) expanding networking and |
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| 36 | 36 | | 2.6peer-to-peer learning opportunities; and |
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| 37 | 37 | | 2.7 (3) access to capital through direct lending, including: (i) establishing a microloan fund |
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| 38 | 38 | | 2.8tailored to small businesses in greater Minnesota; and (ii) offering alternative lending models |
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| 39 | 39 | | 2.9for entrepreneurs who require culturally aligned financial solutions. |
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| 40 | 40 | | 2.10 (c) CAIRO, in collaboration with the commissioner of employment and economic |
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| 41 | 41 | | 2.11development, shall submit a report to the legislature by July 1, 2027, detailing: |
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| 42 | 42 | | 2.12 (1) the number of businesses served and their geographic distribution; |
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| 43 | 43 | | 2.13 (2) the amount of capital deployed and loan repayment rates; |
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| 44 | 44 | | 2.14 (3) the job creation impact and revenue growth of supported businesses; and |
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| 45 | 45 | | 2.15 (4) recommendations for program improvements and potential expansion. |
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| 46 | 46 | | 2.16 (d) The report under paragraph (c) must include the following information to determine |
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| 47 | 47 | | 2.17the efficacy of the program: |
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| 48 | 48 | | 2.18 (1) the number of small businesses receiving technical assistance and mentorship; |
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| 49 | 49 | | 2.19 (2) the percentage of businesses accessing capital through direct lending programs; |
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| 50 | 50 | | 2.20 (3) the growth in revenue, employment, and sustainability of participating businesses; |
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| 51 | 51 | | 2.21and |
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| 52 | 52 | | 2.22 (4) the regional economic impact, including increased economic activity in greater |
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| 53 | 53 | | 2.23Minnesota. |
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| 54 | 54 | | 2.24 (e) The Department of Employment and Economic Development shall oversee funding |
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| 55 | 55 | | 2.25distribution and ensure compliance with state and federal reporting requirements. |
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| 56 | 56 | | 2Section 1. |
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| 57 | 57 | | REVISOR SS/HL 25-0389902/27/25 |
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