MN HF4092

Establishes a greater southeast Minnesota diversification revolving loan program administered by Journey to Growth (J2G) under the Commissioner of Employment and Economic Development to provide loans to eligible borrowers.

Eligible borrowers must be sole proprietorships, partnerships, or corporations in agriculture, manufacturing/suppliers, or technology businesses (majority sales outside Minnesota) that have operated for at least two years and are located in Dodge, Fillmore, Freeborn, Goodhue, Houston, Mower, Olmsted, Rice, Steele, Wabasha, or Winona counties (excluding Rochester).

Loans may fund equipment purchases, facility construction or improvement for energy efficiency or competitiveness, workforce housing projects, or day care facility construction with a maximum loan amount of $500,000 or 25 percent of project costs, maximum 10-year term, and interest rates between 98 and 102 percent of participating financial institution rates.

Loan administrator may use up to $500,000 annually in program income for administrative costs and may invest excess income in apprenticeship, internship, and mentorship programs for eligible businesses.

Appropriates $25,000,000 in fiscal year 2019 from the general fund as a onetime appropriation available until expended, with annual reporting requirements beginning January 15, 2019 and budget certification required beginning August 1, 2019.