Purpose of the Bill

The purpose of this bill is to support economic development in Minnesota by providing financial assistance to specific groups and areas. It involves appropriating funds for grants to the African Development Center, social benefit corporations, and small businesses in the St. Paul Midway area.

Main Provisions

• African Development Center Funding: The bill allocates $4,000,000 for the African Development Center for fiscal year 2026. This one-time funding will be utilized for:

  1. Loans to aid small business owners in purchasing commercial real estate.
  2. Loan loss reserves to enhance loan volumes and attract capital.
  3. Organizational capacity building.

• Social Benefit Corporations Grants: It designates $500,000 for grants to social benefit corporations. These grants aim to expand workforce capacity for corporations employing up to 15 individuals, with a goal to expand to 30 employees. Funds may be used to subsidize new hire wages, provide workforce training, and offer job coaching and retention services.

• St. Paul Midway Area Small Business Grants: The bill also allocates $300,000 to foster economic growth and job creation among small businesses in the St. Paul Midway area, particularly targeting African immigrant business owners to ensure business stability and workforce expansion.

Significant Changes

• This bill introduces new funding specifically targeted at increasing economic opportunities through direct financial support to businesses and organizations that contribute to community development and support underserved populations.

Reporting Requirements

• All grant recipients are required to submit a report to the Commissioner of Employment and Economic Development within one year of receiving the grant. The report must include details on the utilization of funds, new employment figures resulting from the grants, and measurements of job satisfaction and retention.

Relevant Terms

• African Development Center
• Social benefit corporations
• Small businesses
• Economic development
• Commercial real estate
• Workforce capacity
• Employment support services
• St. Paul Midway area
• African immigrant business owners