HF4097

Purpose

• Provide a one-time funding action to support the Emerging Entrepreneur Loan Program by moving money from the state’s general fund into the program’s dedicated account, with the aim of enabling the program to operate more effectively in fiscal year 2027.

Main Provisions

• A transfer of 2,000,000 dollars from the general fund to the Emerging Entrepreneur Loan Program special revenue fund account in fiscal year 2027.
• The transfer is targeted to the program’s dedicated fund (under Minnesota Statutes section 116M.18).
• The commissioner of employment and economic development may use up to 4 percent of this transfer for administration and monitoring of the program.
• This is a one-time transfer, not a permanent funding change.

Financial Details

• Source: general fund
• Destination: Emerging Entrepreneur Loan Program special revenue fund account
• Amount: 2,000,000 dollars
• Fiscal year: 2027
• Administrative/monitoring allowance: up to 4 percent of the transfer

Administration and Oversight

• Administration and monitoring costs can be covered using the transferred funds, up to the 4 percent allowance.
• Oversight is handled by the commissioner of employment and economic development.

Significance and Changes to Law

• Creates a one-time infusion of funds specifically for the Emerging Entrepreneur Loan Program.
• Allows a portion of the transfer (up to 4 percent) to cover administrative and monitoring costs, which is a new authorization tied to this one-time transfer.
• Does not establish ongoing or permanent funding changes to the program’s base appropriations.

Impact Summary

• Purpose: Strengthen funding for the Emerging Entrepreneur Loan Program for a defined period.
• Change: Reallocation of funds from the general fund to the program’s special revenue fund, plus a capped administrative cost.
• Limitation: The transfer is explicitly one-time and tied to fiscal year 2027.

Relevant Terms - general fund - Emerging Entrepreneur Loan Program - special revenue fund - Minnesota Statutes section 116M.18 - commissioner of employment and economic development - administration and monitoring - one-time transfer - fiscal year 2027 - transfer