MN HF6

Commissioner of employment and economic development establishes a grant program to community organizations for local economic relief programs assisting areas adversely affected by civil unrest during Governor's Executive Order No. 20-64, with focus on preserving incumbent entities and encouraging new business location.

Grants to entities capped at $250,000 per entity; loans capped at $500,000 per entity, with or without interest, and may be deferred or forgivable with three-year minimum local operation requirement and three-year maximum deferral period.

Community organizations must develop and submit eligibility criteria, application evaluation procedures, underwriting requirements, and loan terms to commissioner for approval before distributing funds.

Participating community organizations must track and report performance measures including loans approved, grants awarded, loan default rates, jobs created/retained with wage information, business revenue changes, and new tax revenue generated; commissioner reports to legislature by January 15 annually.

$167,570,000 appropriated in fiscal year 2020, including $17,500,000 each to Minneapolis and St. Paul, with $5,000,000 in each city designated for property acquisition in affected areas to prevent displacement; funds available through June 30, 2021.