The bill S.F. No. 2427 is focused on economic development and provides a $5 million appropriation in fiscal year 2026 from Minnesota's general fund to the commissioner of employment and economic development for a grant to MNSBIR Inc.

Purpose of the Grant

The funding is intended to help Minnesota small businesses and startups secure federal research and development (R&D) funding while fostering scientific and technological innovation. The specific goals include: 1. Assisting startups and small businesses in securing federal R&D funding to strengthen innovation and create novel products, services, and solutions. 2. Enhancing the role of small businesses and startups in meeting federal R&D needs. 3. Expanding commercial applications of federally funded research. 4. Growing Minnesota’s workforce, with a focus on Black, Indigenous, People of Color (BIPOC), and women-owned small businesses.

How MNSBIR Inc. Will Use the Funds

The grant funds will allow MNSBIR Inc. to serve as a dedicated resource for Minnesota small businesses by: - Helping them secure federal R&D grants and funding, such as Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs. - Supporting technology transfer and commercialization of research from the University of Minnesota, Mayo Clinic, and federal labs. - Collaborating with corporate venture groups and large national businesses. - Conducting statewide outreach, education, and training on federal rules, regulations, and compliance. - Assisting with scientific and technical writing. - Helping entrepreneurs manage federal grants and contracts. - Supporting cost accounting and sole-source procurement opportunities in federal contracting.

Availability of Funds

• The appropriation is one-time and will remain available until June 30, 2027.

In summary, this bill seeks to bolster Minnesota’s small business innovation ecosystem through federal funding opportunities and commercialization support, with a strong emphasis on diversity and inclusion in entrepreneurship.