HF2581

Purpose of the Bill

The purpose of this bill is to support economic development by providing financial resources to underserved communities and disadvantaged entrepreneurs in Minnesota. It achieves this through a grant allocated to Fortis Capital, a nonprofit organization, to establish a revolving loan fund.

Main Provisions

• Appropriation of Funds: The bill allocates $1,000,000 from the general fund for fiscal year 2026 to Fortis Capital.
• Revolving Loan Fund: The fund is intended to provide risk-mitigating capital for commercial development activities targeting underserved communities and entrepreneurs from disadvantaged groups throughout Minnesota.
• Leveraging Private Sector Partnerships: The loan fund is designed to work in partnership with private lenders and other non-state funding sources to enhance the financial impact by attracting additional outside capital.
• Operational Costs: Up to 10% of the allocated funds may be used for Fortis Capital's operating expenses.

Requirements

• Reporting: Fortis Capital is required to submit a detailed report by December 31, 2028, on how the grant funds were used and the outcomes achieved. This report is to be presented to the legislative committees responsible for economic development.

Significance

• This is a one-time appropriation that will remain available until fully expended, providing initial but not ongoing funding.

Relevant Terms

• Economic development
• Revolving loan fund
• Underserved communities
• Disadvantaged groups
• Nonprofit organization
• Private sector partnerships
• Risk-mitigating capital