Purpose of the Bill

The bill aims to promote economic development by providing financial support to underserved communities and entrepreneurs from disadvantaged groups in Minnesota. It seeks to achieve this by funding a revolving loan fund designed to offer risk-mitigating capital for commercial development.

Main Provisions

• Appropriation of Funds: The bill allocates $1,000,000 from the general fund to be distributed in fiscal year 2026. This grant is given specifically to Fortis Capital, a nonprofit organization, to establish a revolving loan fund.

• Revolving Loan Fund Objectives: The fund is dedicated to providing capital for commercial development in underserved communities. It targets partnerships with private lenders and other non-state funding sources to enhance its impact by leveraging additional capital.

• Use of Funds: Up to 10% of the provided grant may be allocated for Fortis Capital's operating costs to ensure the effective management of the loan fund.

• Reporting Requirements: Fortis Capital is required to submit a detailed report by December 31, 2028, to the legislative committees on economic development. This report must outline how the grant funds have been used and describe the outcomes of the program.

Significant Changes to Existing Law

This bill represents a new allocation of funds specifically directed at supporting economically underserved communities and disadvantaged entrepreneurs through a revolving loan fund. It introduces no changes to existing law but rather establishes new funding and reporting mechanisms.

Relevant Terms

economic development, revolving loan fund, underserved communities, disadvantaged groups, Fortis Capital, risk-mitigating capital, private sector partnerships, non-state funds, operating costs, appropriation, grant.