MN SF4029

Establishes a greater southeast Minnesota diversification revolving loan program administered by Journey to Growth (J2G) to provide loans to eligible borrowers in agriculture, manufacturing, and technology industries that have been operating for at least two years.

Restricts eligibility to businesses located in Dodge, Fillmore, Freeborn, Goodhue, Houston, Mower, Olmsted, Rice, Steele, Wabasha, and Winona counties (excluding Rochester) with at least one owner or partner maintaining a personal credit score of 680 or above.

Sets maximum loan amount at the lesser of 25 percent of total project costs or $500,000 per project, with interest rates between 98 and 102 percent of participating financial institution rates and a maximum loan term of ten years.

Permits loan proceeds for equipment purchases, facility construction or improvement, workforce housing projects, and day care facility construction or improvement.

Appropriates $25,000,000 in fiscal year 2019 from the general fund as a onetime appropriation available until expended, with program income from interest and fees available to offset administrative costs up to $500,000 annually.