Purpose of the Bill

The purpose of this bill is to provide financial support for economic development, specifically targeting child care providers and women food entrepreneurs in Minnesota. The bill aims to assist these groups in becoming profitable and sustainable while supporting business expansion and operation.

Main Provisions

1. Allocation of Funds: The bill appropriates $8,000,000 in fiscal year 2026 from Minnesota’s general fund. This money will be granted to WomenVenture for various developmental programs.

2. Support for Child Care Providers: Funds will be used to:

   • Provide business training and shared services programs to child care providers.
   • Create free resources for starting, expanding, and operating child care businesses.
   • Focus on aiding child care businesses in underserved areas to achieve profitability.

3. Support for Women Food Entrepreneurs: Funds aim to:

   • Stabilize and strengthen business operations for women food entrepreneurs.
   • Create distribution networks and offer technical assistance.
   • Develop business plans, research expansion strategies, and support workforce development in the food supply chain and agribusiness.

4. Types of Assistance:

   • Money may be used for leasehold improvements, emergency grants, equipment purchases, working capital, and debt refinancing.
   • Assistance will be provided through loans, forgivable loans, and grants.
   • Up to five percent of the funds may cover technical assistance and administrative costs by WomenVenture.

5. Reporting Requirement: WomenVenture must report by December 15, 2028, detailing:

   • Uses of the appropriated funds and administrative costs.
   • Breakdown of the funding distribution among loans, forgivable loans, and grants.
   • Terms of the issued loans.
   • Plans for utilizing repayments from loans.
   • Number of entrepreneurs assisted, with county-specific assistance data.

Significant Changes

• The bill introduces targeted financial support for child care and food sector businesswomen, focusing on underserved areas in Minnesota.
• It sets forth a structured repayment and reinvestment plan for loaned funds, ensuring a cycle of continued support and development.

Relevant Terms

economic development, WomenVenture, child care providers, business training, food entrepreneurs, business expansion, technical assistance, leasehold improvements, natural disasters, forgivable loans, administrative costs.