HF2111

HF2111 (Legislative Session 94 (2025-2026))

Fursad Fund Initiative grant funding provided to support small businesses in greater Minnesota through technical assistance, capacity building, and access to capital; and money appropriated.

Related bill: SF2219

AI Generated Summary

Purpose of the Bill

The bill aims to promote economic development in Greater Minnesota by supporting small businesses through various initiatives such as technical assistance, capacity building, and improved access to capital.

Main Provisions

Grant Allocation: The bill allocates $1,000,000 from the general fund for fiscal year 2026 to the Center for African Immigrants and Refugees Organization (CAIRO). CAIRO will administer the Fursad Fund Initiative.
Eligibility Criteria for Recipients:
- Businesses must be located outside the seven-county metropolitan area.
- Owned by historically underserved groups, including immigrants, refugees, and communities of color.
- Must have fewer than 25 employees and demonstrate financial need.
Use of Funds: Funds can be used for:
1. Technical Assistance and Business Coaching: Including personalized mentorship, business planning, and financial literacy training.
2. Capacity Building: Helping businesses navigate regulatory and financial processes, and expanding networking opportunities.
3. Access to Capital: Establishing a microloan fund suited to small businesses in these areas, and providing alternative lending models to meet cultural financial needs.
Reporting Requirements: CAIRO, along with the commissioner of employment and economic development, must submit a report to the legislature by July 1, 2027. The report should detail:
- The number and distribution of businesses served.
- The amount of capital provided and loan repayment rates.
- Job creation and revenue growth impact.
- Recommendations for program improvements and expansion.

Significant Changes to Existing Law

This bill proposes the creation of a new specific initiative to support small businesses in greater Minnesota, focusing on historically underserved entrepreneurs.
It establishes a requirement for detailed reporting to evaluate the program’s effectiveness and impact on the regional economy.

Relevant Terms

Economic development
Technical assistance
Capacity building
Access to capital
Underserved entrepreneurs
Microloan fund
Business coaching
Financial literacy training
Historical underserved communities

Bill text versions

Introduction PDF file

Actions

Date	Chamber	Where	Type	Name	Committee Name
March 09, 2025	House	Floor	Action	Introduction and first reading, referred to	Workforce, Labor, and Economic Development Finance and Policy

Citations

[
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This bill defines the seven-county metropolitan area under Minnesota Statutes section 473.121.",
      "modified": []
    },
    "citation": "473.121"
  }
]