MN HF3037

Establishes a manufacturing equipment loan program administered by the commissioner of employment and economic development to provide low-interest, long-term loans to qualifying manufacturing businesses for equipment purchases, covering up to 50 percent of project costs.

Requires the commissioner to publish annual requests for loan proposals in the State Register and select proposals within 45 days based on criteria including job creation, equipment reliability, geographic distribution, project cost percentage, security for repayment, and economic development maximization.

Mandates loans be issued at the lowest interest rate needed to recover principal and costs, with a minimum 15-year term unless shorter periods are determined necessary, and allows grace periods of up to 24 months before payments become due.

Authorizes the commissioner of management and budget to issue revenue bonds for purposes of making manufacturing equipment loans, paying issuance costs and debt service, and funding reserves, with bond repayment limited to dedicated revenue sources.

Establishes that issued bonds are not general or moral obligations of the state and cannot be paid from state tax revenues; the state has no obligation to pay bonds if pledged revenues are insufficient.