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