Purpose of the Bill

The purpose of this bill is to support economic development and job retention efforts for small businesses in St. Paul and West St. Paul, Minnesota. The goal is to strengthen local economies by providing financial and technical support to businesses with ten or fewer full-time employees.

Main Provisions

• Funding Allocation: The bill allocates a total of $5 million in grants from the general fund for fiscal year 2026.

  • St. Paul is set to receive $3 million to be used in partnership with the West Side Community Organization.
  • West St. Paul is designated to receive $2 million to be used in conjunction with the Residents of Color Collective.

• Uses of Funds: The allocated grants can be used for:

  • Providing technical assistance to small businesses.
  • Establishing revolving loan funds.
  • Issuing loans which may include no-interest and forgivable options.
  • Offering grants to cover operating expenses of small businesses.

• Validity Period: The funds are available for use until June 30, 2027.

Significant Changes

The bill introduces state-funded grants specifically targeting small businesses employing ten or fewer full-time workers in St. Paul and West St. Paul. It encourages economic development and job retention through financial assistance, marking an increased focus on supporting local entrepreneurship and small-scale enterprises.

Relevant Terms

economic development, job retention, grants, small businesses, revolving loan funds, no-interest loans, forgivable loans, technical assistance, St. Paul, West St. Paul, West Side Community Organization, Residents of Color Collective