Purpose of the Bill

The bill aims to support economic development in Minnesota by funding microbusinesses through loans, grants, technical assistance, and a business incubator program.

Main Provisions

• Appropriation of Funds: The bill allocates $4,000,000 in fiscal year 2026 from Minnesota's general fund to the commissioner of employment and economic development. This is designated as a one-time appropriation.
• Funding to Isuroon: The grant is directed to Isuroon, an organization tasked with implementing the program.
• Utilization of Funds:
  • Loans and Grants: Provide financial support to microbusinesses for entrepreneurship and economic growth, focusing on startup costs, capacity building, and business sustainability.
  • Technical Assistance: Offer training and support for business operations, including financial management and development strategies.
  • Business Incubator Program: Establish and operate a business incubator to provide shared resources, mentorship, and professional network access.
• Priority Recipients: Preference in funding is given to businesses owned by women, immigrants, and people of color in Minnesota.

Significant Changes

• Increased focus on supporting microbusinesses in underserved communities by prioritizing certain demographic groups for financial and developmental assistance.
• Establishes a comprehensive support structure through loans, grants, and incubation strategies, which did not exist previously in this specific form or scope.

Reporting Requirements

• By January 15, 2027, Isuroon must report to both the commissioner of employment and economic development and the legislative committees. The report will detail the distribution of loans and grants, recipient demographics, business outcomes like revenue growth, job creation, and participation in the business incubator.

Relevant Terms

• Economic development, microbusinesses, loans, grants, technical assistance, business incubator, Isuroon, underserved communities, entrepreneurship, women-owned businesses, immigrant-owned businesses, businesses of color, Minnesota.