Purpose of the Bill

The bill is designed to support economic development within Minnesota by providing financial and educational resources to microbusinesses, particularly in underserved communities. The focus is on enhancing entrepreneurship opportunities and economic growth among marginalized groups.

Main Provisions

• Funding Allocation: The bill proposes a one-time appropriation of $4,000,000 from the general fund for the fiscal year 2026. These funds are dedicated to the Commissioner of Employment and Economic Development for a grant to the organization Isuroon.

• Use of Funds:

  1. Loans for Microbusinesses: Provide loans that promote entrepreneurship in underserved areas.
  2. Grants for Support: Offer grants to assist with startup costs, capacity building, and sustainability for microbusinesses.
  3. Technical Assistance: Deliver training and technical assistance focused on business operations, financial management, and developmental strategies.
  4. Business Incubator: Establish and operate a business incubator program offering shared resources, mentorship, and access to professional networks.

• Priority Groups: The bill emphasizes prioritizing support for businesses owned by women, immigrants, and members of communities of color in Minnesota.

Reporting Requirement

By January 15, 2027, Isuroon is required to submit a report detailing: - The number of loans and grants awarded and the total amounts. - The demographics of recipients, including locations and types of businesses. - Outcomes achieved, such as revenue growth, job creation, and participation in the incubator program.

Significant Changes

This legislation bolsters microbusinesses in underserved communities with the aim to promote diverse and equitable economic development, prioritizing minority-owned businesses for the first time through this structured "business incubator" approach.

Relevant Terms

• Economic development
• Microbusiness loans
• Grants
• Technical assistance
• Business incubator
• Underserved communities
• Minority-owned businesses
• Women entrepreneurs
• Immigrant businesses