Purpose of the Bill

This bill aims to modify the support framework for cannabis microbusinesses in Minnesota. It seeks to adjust loan contribution limits, streamline application processes, and ensure ongoing financial and administrative support for businesses in the legal cannabis industry.

Main Provisions

• Increased Loan Limits: The bill raises the maximum state contribution to loans for cannabis microbusinesses. The limits are increased from $150,000 to $200,000 if matched by at least 25% of new private investment, and from $50,000 to $75,000 for general loans.
• Streamlined Loan Approval: The commissioner must decide on loan applications within 30 days. If more information is needed, notification must be given within 14 days.
• Loan Renewal and Forgiveness: Cannabis microbusinesses can apply to renew loans annually for up to six years if they remain in good standing. The commissioner can approve complete or partial forgiveness of loan interest or principal after three years of consistent payments.
• Nonprofit Loan Administration: Nonprofits administering these loans can cover their costs using origination fees and a portion of loan interest payments. They must also report average interest rates biannually.
• Grant Programs for Assistance: Grants will be awarded to organizations providing technical assistance and resources to businesses, with emphasis on helping those eligible for social equity programs or facing barriers to education or employment.

Significant Changes to Existing Law

• The bill amends the loan application process timeline and conditions for loan forgiveness.
• It modifies the usage of interest payments and contract funds by nonprofits, allowing a portion of these funds to cover administrative costs.
• It expands grant opportunities to cover a broader range of resources and technical assistance pertaining to the cannabis industry, with increased focus on social equity.

Relevant Terms

cannabis microbusiness, loan limits, social equity, nonprofit corporations, interest payments, grant programs, technical assistance, administrative expenses, loan forgiveness.