NEWS RELEASE
Rep. Hodan Hassan
Minnesota House of Representatives
District 62B – 651-296-0294 – rep.hodan.hassan@house.mn.gov
597 State Office Building, St. Paul, MN 55155
FOR IMMEDIATE RELEASE
CONTACT: Marlee Schlegel
651-296-9873 or marlee.schlegel@house.mn.gov
March 16, 2023
Legislation to reduce racial and socioeconomic disparities through loan program receives committee hearing
SAINT PAUL, Minn. - Yesterday, the Economic Development Finance and Policy Committee heard legislation to create the emerging developer fund program, which will provide loans to less established developers for projects aimed at reducing racial and socioeconomic disparities. This program would open opportunities for the BIPOC community, women, people with disabilities, and low-income Minnesotans to secure low-interest, non-predatory loans to start and run businesses.
The bill is authored by Rep. Hodan Hassan (DFL – Minneapolis)
“There is an incredible amount of talent and untapped potential going to waste in black and brown communities due to unfair capital disbursement,” said Rep. Hassan. “Data from the Federal Reserve shows that black prospective business owners are denied loans twice as often as white prospective business owners. When loans are approved, black business owners are stuck with significantly higher interest rates compared to white applicants with the same credentials. This is a clear disparity that we must address. Small businesses are the heartbeat of Minnesota, and this will level the playing field and allow more Minnesotans to think big, be innovative, and have a true, honest chance at the American dream.”
The bill has been laid over for possible inclusion in a larger Economic Development Finance and Policy Committee bill.
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