Purpose of the Bill

This bill aims to promote economic development in Minnesota by providing financial support through grants targeted at specific organizations and areas. It seeks to empower small businesses, social benefit corporations, and African immigrant entrepreneurs, with a focus on enhancing employment opportunities for underserved communities and fostering economic growth.

Main Provisions

1. Grant to African Development Center:

   • Allocates $4,000,000 for fiscal year 2026 to the African Development Center.
   • Funds are divided as follows:
     • $2,000,000 for loans to assist small business owners with purchasing commercial real estate.
     • $910,000 for loan loss reserves aimed at supporting loan growth and attracting capital.
     • $1,090,000 for increasing organizational capacity.

2. Grants to Social Benefit Corporations:

   • Allocates $500,000 for fiscal year 2026 for social benefit corporations as defined by Minnesota statutes.
   • Purpose is to expand workforce capacity and increase employment opportunities for underserved populations.
   • Funds can subsidize wages, provide workforce training, and support employment services such as job coaching.

3. Grants for Small Business Job Creation in the St. Paul Midway Area:

   • Allocates $300,000 for fiscal year 2026 to support small businesses in the St. Paul Midway area.
   • Focuses on aiding African immigrant business owners to enhance business stability and workforce expansion.

Significant Changes

• The bill introduces targeted financial support for African immigrant entrepreneurs, social benefit corporations, and small businesses in a specific geographic area (St. Paul Midway).
• It sets criteria for grant recipients to report on employment outcomes and economic impacts, ensuring accountability and tracking of the funds' effectiveness in job creation and retention.

Relevant Terms

• Economic development, African Development Center, social benefit corporations, small businesses, underserved populations, workforce expansion, employment support, St. Paul Midway, African immigrant business owners.