H.F. 994 Summary

• Establishes Venture SE Minnesota Diversification revolving loan program administered by Journey to Growth to provide loans to eligible borrowers in agriculture, manufacturing, technology, health care, transportation, child care, and residential development.

• Eligible borrowers must be located in Dodge, Fillmore, Freeborn, Goodhue, Houston, Mower, Olmsted, Rice, Steele, Wabasha, and Winona counties (excluding Rochester) and cannot relocate from elsewhere in Minnesota without local consent.

• Loans have maximum 10-year terms with interest rates up to 1 point above prime rate (political subdivisions up to 1 point below prime), maximum loan amount of lesser of 25% of project costs or $500,000, and one-time administrative fee up to 0.5%.

• Loan proceeds may be used for equipment, facility improvements, income-qualified housing projects, infrastructure, and regional apprenticeship and mentorship programs.

• Appropriates $25,000,000 from general fund in fiscal year 2020, with $250,000 designated for promotional activities, subject to legislative audit with annual reporting requirements beginning January 15, 2020.