St. Paul, MN - Today, the Minnesota House Jobs and Economic Development Finance Division held a remote hearing on House File 1507, authored by Rep. Zack Stephenson (DFL - Coon Rapids), which would provide an additional $55 million for the state’s Small Business Emergency Loan Program.
“Before the Minnesota Legislature adjourns this spring, we owe it to our small businesses to provide them with the assistance they need to weather COVID-19,” said Rep. Tim Mahoney (DFL - St. Paul) chair of the Jobs and Economic Development Finance Division. “This has been a successful loan program, but more funds are needed, especially for our local businesses that have otherwise fallen through the cracks of federal resources.”
The bill appropriates $55 million to the Small Business Emergency Loan Program at the Minnesota Department of Employment and Economic Development (DEED), which was launched by Executive Order 20-15 from Gov. Walz on March 23. The program’s original $30 million has since been exhausted.
“We have to do better for our Minnesota small businesses. Whether a small business survives the pandemic should not depend on whether they are able to play the influence game or Washington politics,” remarked Rep. Stephenson. “The small family business here in Minnesota deserves a chance to make it to the other side of COVID-19 just as much as the huge, well-connected businesses that emptied the available federal funds.”
The Emergency Loan Program is intended to provide immediate relief for small businesses that are struggling with the coronavirus pandemic. The loans would range from $2,000 to $35,000, be available at 0% interest, and are 50% forgivable if the business is operating at substantially the same level in two years. Loans are administered by a network of community lenders utilized by DEED as part of its existing Emerging Entrepreneur Loan Program. Small businesses or nonprofits must demonstrate that they are adversely affected by the Executive Orders which temporarily closed bars, restaurants and other places of public accommodation.
House File 1507 was passed out of the committee and referred to Ways and Means. Supporting documents can be found on the committee’s webpage, and a video recording of today’s hearing will be available on the House Public Information’s YouTube Channel.
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