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HF2111 (Legislative Session 94 (2025-2026))

Fursad Fund Initiative grant funding provided to support small businesses in greater Minnesota through technical assistance, capacity building, and access to capital; and money appropriated.

Related bill: SF2219

AI Generated Summary

The bill (H.F. No. 2111) introduced in the Minnesota House of Representatives proposes an appropriation of $1,000,000 in fiscal year 2026 from the state's general fund. This money would be allocated to the Center for African Immigrants and Refugees Organization (CAIRO) to administer the Fursad Fund Initiative, which aims to support small businesses located in Greater Minnesota (outside the seven-county metropolitan area).

Key Provisions:

  1. Eligible Recipients:

    • Small businesses outside the Twin Cities metro area.
    • Businesses owned by historically underserved entrepreneurs, including immigrants, refugees, and communities of color.
    • Businesses with fewer than 25 employees that demonstrate financial need.

  2. Permitted Uses of Funds:

    • Technical Assistance & Mentorship:
      • Business coaching, financial literacy training, and industry-specific workshops.
    • Capacity Building:
      • Helping businesses navigate regulations, financial planning, and expanding networking opportunities.
    • Access to Capital:
      • Establishing a microloan fund and offering alternative lending models for entrepreneurs needing culturally aligned financial solutions.

  3. Reporting Requirements:

    • CAIRO, in collaboration with the Department of Employment and Economic Development (DEED), must submit a report to the Minnesota Legislature by July 1, 2027. The report should include:
      • Number of businesses served and their geographic distribution.
      • Total capital distributed and loan repayment rates.
      • Impact on job creation and revenue growth.
      • Recommendations for program improvement and potential expansion.
    • Additionally, the report must assess:
      • Number of businesses receiving mentorship.
      • Percentage of businesses accessing capital.
      • Business revenue growth, employment impact, and overall regional economic benefits.

  4. Oversight & Compliance:

    • DEED will oversee the funding distribution and ensure compliance with state and federal reporting requirements.

Purpose of the Bill:

The measure seeks to promote economic development and entrepreneurship among historically marginalized communities in Greater Minnesota by improving access to capital, technical support, and business networking opportunities.

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 09, 2025HouseFloorActionIntroduction and first reading, referred toWorkforce, Labor, and Economic Development Finance and Policy
March 09, 2025HouseFloorActionIntroduction and first reading, referred toWorkforce, Labor, and Economic Development Finance and Policy

Citations

 
[
  {
    "analysis": {
      "added": [
        "Appropriates $1,000,000 for the Fursad Fund Initiative."
      ],
      "removed": [
        ""
      ],
      "summary": "This bill allocates funding for small businesses outside the seven-county metropolitan area as defined under section 473.121, subdivision 2.",
      "modified": [
        "Eligibility criteria for businesses include being located outside designated metropolitan area."
      ]
    },
    "citation": "473.121",
    "subdivision": "subdivision 2"
  }
]

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