SF2219

This bill (S.F. No. 2219) is focused on economic development in greater Minnesota. It appropriates $1,000,000 in fiscal year 2026 from the general fund to the Minnesota Department of Employment and Economic Development (DEED) for a grant to the Center for African Immigrants and Refugees Organization (CAIRO) to administer the Fursad Fund Initiative.

Key Provisions:

1. Program Purpose: The initiative aims to support small businesses in greater Minnesota, particularly those owned by historically underserved entrepreneurs, including immigrants, refugees, and communities of color.

2. Eligible Recipients:

   • Businesses located outside the seven-county metropolitan area.
   • Businesses owned by historically underserved entrepreneurs.
   • Businesses with fewer than 25 employees that demonstrate a financial need for capital investment or technical assistance.

3. Use of Funds:

   • Technical assistance and business coaching, such as mentorship, business planning, and financial literacy training.
   • Capacity building, including regulatory navigation, financial planning, and networking opportunities.
   • Access to capital, through microloans and alternative lending models tailored to the needs of small businesses.

4. Reporting Requirements:

   • CAIRO, in collaboration with DEED, must submit a report to the legislature by July 1, 2027, detailing:
     • The number and geographic distribution of businesses served.
     • The amount of capital deployed and loan repayment rates.
     • The impact on job creation and revenue growth.
     • Recommendations for program improvement and expansion.

5. Program Oversight:

   • DEED is responsible for overseeing the distribution of funds and ensuring compliance with state and federal reporting requirements.

Objective:

The bill seeks to strengthen small business development in rural areas, increase economic activity, and provide crucial financial and technical support to underserved entrepreneurs in Minnesota.