Purpose of the Bill

The bill aims to support economic development in Minnesota by providing financial assistance to underserved communities and entrepreneurs from disadvantaged groups through a grant to Fortis Capital.

Main Provisions

• Appropriation of Funds: The bill allocates $1,000,000 from Minnesota's general fund for the fiscal year 2026. These funds are designated for a grant to Fortis Capital, a nonprofit organization recognized under section 501(c)(3).
• Revolving Loan Fund: The grant is intended to create a revolving loan fund that provides risk-mitigating capital for commercial development activities. The focus is on serving underserved communities and disadvantaged entrepreneurs throughout the state.
• Partnerships: Fortis Capital is encouraged to partner with private sector lenders and other non-state funding sources to maximize the fund's impact through leveraging additional capital.
• Operational Costs: Up to 10% of the grant can be used for Fortis Capital's operating expenses.
• Reporting Requirement: Fortis Capital must submit a detailed report by December 31, 2028, to the relevant legislative committees. This report should outline the grant's usage and the program's outcomes.

Significant Changes

The appropriation is a one-time allocation from the state general fund and will be available until fully expended. This initiative aims to enhance the impact of existing economic development activities by engaging private sectors and non-state resources.

Relevant Terms

• Economic development
• Fortis Capital
• Revolving loan fund
• Underserved communities
• Disadvantaged groups
• Private sector lenders
• 501(c)(3) nonprofit