Purpose of the Bill

The bill is designed to support economic development in Minnesota, particularly targeting underserved communities and disadvantaged business owners. It achieves this through financial and developmental resources tailored to microbusinesses.

Main Provisions

• Funding: Allocates $4,000,000 from Minnesota's general fund for fiscal year 2026 to the organization Isuroon. This funding is designated for microbusiness development and is a one-time appropriation.
• Loans and Grants: Provides loans to microbusinesses to encourage entrepreneurship and economic advancement. It also offers grants to cover startup expenses, build capacity, and ensure sustainability of these small businesses.
• Technical Assistance: Delivers support and training to entrepreneurs, focusing on business operations, financial management, and development strategies.
• Business Incubator: Establishes a program that offers shared resources, mentorship, and professional networking opportunities to assist microbusinesses.

Significant Changes

• Targeted Support: Prioritizes businesses owned by women, immigrants, and people of color, thereby addressing historical disparities in entrepreneurship opportunities within these communities.
• Mandatory Reporting: By January 15, 2027, Isuroon must report to the relevant state authorities detailing the number and distribution of loans and grants, demographic information of recipients, geographic and business type data, and the outcomes of the supported businesses, including growth in revenue, job creation, and engagement in the incubation program.

Relevant Terms

microbusiness, economic development, loans, grants, technical assistance, business incubator, entrepreneurship, underserved communities, women-owned businesses, immigrant businesses, businesses of color, Minnesota.