SF1145

This legislative bill, S.F. No. 1145, proposes to establish the GroundBreak Capital Access and Innovation Fund. Here are the main features of the bill:

1. Definitions: The bill defines essential terms including the roles of the commissioner of employment and economic development, originating partners (like nonprofit organizations), startups, equity enhancements, and the GroundBreak coalition.

2. Funding: It appropriates $50 million for fiscal year 2026 from the general fund to the commissioner to provide a grant to the Minneapolis Foundation. This foundation will manage the funds, aimed at improving access to capital for entrepreneurship, commercial real estate, and homeownership through various programs. A base amount for subsequent appropriations is set at $25 million annually for 2028 and 2029.

3. Programs and Loans:

   • Forgivable Startup Business Loans: Startups can receive forgivable loans up to $50,000 for various business-related expenses, with eligibility criteria including being based in the state and lacking access to other financial sources. Loans are fully forgivable after three years if used for approved purposes.
   • Commercial Real Estate Equity Enhancements: Provides financial assistance up to $250,000 for commercial real estate developments with certain qualifications like having project costs under $10 million.
   • Forgivable Down Payment Assistance Loans: Offers up to $25,000 in down payment assistance to qualified homebuyers within specific income limits and residential statuses. These are also forgivable over five years but must be repaid if certain conditions regarding property use or sale are not met.

4. Administration and Oversight:

   • Grants a portion of the funds for administration and technical assistance.
   • Requires the Minneapolis Foundation to maintain strict accounting practices, monitor program outcomes, and report annually on the use of funds and impacts on job creation.
   • A public website must be set up to report the use of funds and performance measures.

5. Audit and Compliance: Mandates an independent audit of the use of funds and establishes that uncommitted funds by June 30, 2029, return to the general fund.

Overall, the bill seeks to boost economic development by making capital more accessible for business startups, real estate development, and prospective homeowners, particularly through forgiving financial aids and enhancing equity opportunities.