MN HF2884

Renames the "Urban Initiative Board" to "Minnesota Initiative Board" and establishes the Minnesota Initiative program to award grants to nonprofit corporations for loans to businesses owned by minority or low-income persons or women.

Expands statewide access to the program by requiring loans be made with approximately equal dollar amounts to businesses in metropolitan and nonmetropolitan areas, with unused funds reverting to a general loan pool after the ninth month of the fiscal year.

Increases board membership from 8 to 12 public members appointed by the governor, with at least 9 representing minority business enterprises and at least half having experience addressing racial income disparities.

Modifies microenterprise loan parameters to allow minimum loans of $5,000 and maximum of $35,000 (or $50,000 in low-income areas), and permits nonprofit corporations to have established relationships with minority communities as an eligibility criterion.

Appropriates $4,000,000 for fiscal year 2017 for the Minnesota Initiative program and $1,000,000 for capacity building grants, with effectiveness date of July 1, 2016.