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SF1449 (Legislative Session 94 (2025-2026))

Cannabis microbusinesses provisions modifications

Related bill: HF2033

AI Generated Summary

The bill S.F. No. 1449 focuses on supporting cannabis microbusinesses in Minnesota through various financial adjustments and provisions. Here's a breakdown of the main elements:

  1. Loan Program Changes:

    • The bill amends criteria for loans given to new cannabis microbusinesses, prioritizing businesses owned by social equity applicants and those in specific communities.
    • It sets minimum and maximum amounts for state contributions to these loans, ranging from $2,500 to $200,000, depending on whether the state contributions are matched by private investments.
    • The commissioner is now required to approve loan applications quickly, within 30 days, unless additional information is needed.
    • Cannabis microbusinesses can renew their loans annually for up to six years, and under certain conditions, they might be eligible for interest or principal forgiveness after three years of good standing.

  2. Administration of Loan Funds:

    • A minimum interest rate for loans is established to cover administrative costs, and nonprofit organizations managing these loans can retain origination fees and interest payments to cover their operating expenses.
    • The interest rates charged must be reasonable and are capped at no higher than the Wall Street Journal prime rate.

  3. Grants for Technical Assistance:

    • Grant funds can be used by eligible organizations to develop resources and provide assistance related to the regulatory aspects of the legal cannabis industry.
    • Funds are awarded through a competitive process, with priority given to organizations that have shown effectiveness in helping individuals who face barriers to education or employment or live in areas with many social equity applicants.
    • Nonprofit organizations can use part of their contract funds to cover various administrative costs.

Overall, this bill aims to promote and sustain cannabis microbusinesses by providing financial support and resources, particularly emphasizing support for businesses that contribute to social equity in the industry.

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
February 16, 2025SenateFloorActionIntroduction and first reading
February 16, 2025SenateFloorActionReferred toJobs and Economic Development
March 02, 2025SenateFloorActionComm report: To pass as amended and re-refer toCommerce and Consumer Protection
March 23, 2025SenateFloorActionWithdrawn and re-referred toJobs and Economic Development
March 23, 2025HouseFloorActionWithdrawn and re-referred toJobs and Economic Development
March 23, 2025SenateFloorActionWithdrawn and re-referred toJobs and Economic Development

Citations

 
[
  {
    "analysis": {
      "added": [
        "Clarifies the retention of loan interest payments by nonprofit corporations to cover expenses."
      ],
      "removed": [],
      "summary": "This bill modifies the sections related to loans to businesses and revolving loan account administration under section 116J.659.",
      "modified": [
        "Adjusts the maximum state contribution for loans to cannabis microbusinesses."
      ]
    },
    "citation": "116J.659"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This bill modifies the grant process to organizations under section 116J.6595.",
      "modified": [
        "Specifies the competitive grant process and reporting requirements for nonprofit corporations."
      ]
    },
    "citation": "116J.6595"
  }
]

Sponsors