This Minnesota bill proposes changes to financial support programs for cannabis microbusinesses. The key provisions of the bill include:

1. Increase in Loan Limits:

   • The maximum state contribution to loans for cannabis microbusinesses would be raised:
     • From $50,000 to $75,000 for standard loans.
     • From $150,000 to $200,000 if matched by at least 25% in private investment.

2. Loan Processing and Conditions:

   • The commissioner must approve loan applications within 30 days.
   • If an application lacks information, the nonprofit corporation must be notified within 14 days.
   • Cannabis microbusinesses may renew loans annually for up to six years.
   • If a borrower is in good standing for at least three years, the commissioner may forgive interest or principal payments.

3. Loan Administration by Nonprofits:

   • The maximum interest rate on loans must not exceed the Wall Street Journal prime rate.
   • Nonprofits can charge and retain a 1% loan origination fee.
   • Loan principal repayments go to the state's CanStartup revolving loan account.
   • Interest repayments may be retained by nonprofit corporations to cover loan servicing and administrative expenses.

4. Transparency in Loan Management:

   • The average interest rates charged by nonprofits must be reported biannually and published publicly.

5. Grants for Technical Assistance:

   • Grant funds may be used to help individuals navigate cannabis industry regulations.
   • Preference will be given to organizations with a history of helping individuals facing employment or education barriers.
   • Up to 15% of contract funds may be used by nonprofits to cover administrative expenses.

This bill aims to improve accessibility to financial resources for new cannabis businesses, particularly those owned by social equity applicants, while increasing transparency and efficiency in loan administration.