SF5176

Purpose

Establish a cooperative development grant program to help finance new cooperatives that organize to operate a processing facility or market a product or service in Minnesota. The program aims to support economic development by assisting cooperatives that are controlled by their patrons and focused on Minnesota-based activities.

Main Provisions

• Establishment of a grant program: The commissioner may create and run a grant program to support new cooperatives in Minnesota.
• Eligible grantees: Cooperatives organized under Minnesota chapters 308A, 308B, or 308C; must certify that control of the cooperative is from persons who are patrons or actively engaged in the cooperative’s activities; must be operated primarily to process, market, or provide services produced in Minnesota; must operate primarily to serve Minnesota-based patrons; must not allow nonpatron voting rights.
• Uses of grants (up to $50,000 per grant): Feasibility and marketing analysis assistance with organizational development; financing and managing new cooperatives; product development; development of business and marketing plans; predesign of facilities including site analysis, development of bid specifications, preliminary blueprints and schematics; and the completion of purchase agreements and other necessary legal documents.
• Matching requirement: Grants must be matched dollar-for-dollar with other money or in-kind contributions.
• Administration: The commissioner is authorized to establish and implement the grant program.

Significant Changes

• Creates a new Cooperative Grants program within Minnesota Statutes chapter 116J, specifically section 116J.408, to support the formation and development of cooperatives.
• Requires patron control and Minnesota focus for eligibility, reinforcing cooperative principles in the grant program.
• Sets a concrete funding cap ($50,000 per grant) and a dollar-for-dollar matching requirement, shaping how funds can be used and leveraged.

Implementation & Administration

• Oversight by the commissioner, who may establish and run the grant program.
• Eligible projects focus on early-stage development and planning for cooperatives that will operate processing facilities or market Minnesota-produced goods or services.
• Funds are intended for planning, analysis, development, and preconstruction activities needed to start or grow a cooperative business.

Relevant Terms

cooperative, cooperative development grant program, Minnesota, processing facility, marketing a product or service, patron, nonpatron voting rights, Minnesota-based patrons, eligible grantees, grants up to 50,000, feasibility analysis, marketing analysis, organizational development, financing and managing, product development, business plans, marketing plans, predesign of facilities, site analysis, bid specifications, blueprints, schematics, purchase agreements, legal documents, dollar-for-dollar matching, in-kind contributions, commissioner, Minnesota Statutes chapter 116J, section 116J.408 COOPERATIVE GRANTS.