Purpose of the Bill

The primary purpose of this bill is to promote economic development in Minnesota by providing financial support to underserved communities and disadvantaged entrepreneurs. This is achieved through the creation of a revolving loan fund managed by Fortis Capital.

Main Provisions

• The bill allocates $1,000,000 from Minnesota's general fund for fiscal year 2026 to the commissioner of employment and economic development. This fund is designated as a grant to Fortis Capital, a nonprofit organization.
• The grant will be used to establish a revolving loan fund. This fund aims to provide risk-mitigating capital for commercial development activities, specifically targeting underserved communities and entrepreneurs from disadvantaged groups across the state.
• The fund seeks to maximize its impact by forming partnerships with private lenders and leveraging additional non-state funds.
• Up to 10% of the allocated funds may be utilized by Fortis Capital to cover its operational costs.
• Fortis Capital is required to submit a report by December 31, 2028, to the relevant legislative committees. This report will outline the utilization of the grant funds and the outcomes of the programs initiated through this fund.

Significant Changes to Existing Law

This bill introduces a new financial initiative by appropriating state funds specifically for a nonprofit-managed revolving loan fund aimed at supporting economic development in underserved areas. This is a one-time allocation and includes a new reporting requirement to ensure accountability and transparency.

Relevant Terms

• Economic development
• Revolving loan fund
• Underserved communities
• Disadvantaged entrepreneurs
• Nonprofit organization
• Private sector lenders
• Grant funds
• Operational costs