Economic Development and Job Creation Programs
A Presentation to the House Jobs Task Force
September 25, 2009 Anita Neumann House Research Department Minnesota has a variety of programs designed to promote and maintain economic development, to maintain current employment and to create new employment opportunities throughout the state. The programs range from direct business subsidies in the form of grants and loans; the provision of information, advice, and technical assistance; state-sponsored marketing and promotion; and public funding of infrastructure development and redevelopment. The state also promotes economic development and job creation through its support of programs designed to educate and train its current and future workforce through higher education, workforce development programs, and through the unemployment insurance program. The following table titled “Minnesota Economic Development and Job Creation Programs” highlights and summarizes the major, ongoing economic development and job creation initiatives that exist in statute. The table does not include programs and services whose primarily focus are education and workforce training. A separate legislative tracking spreadsheet attached to this presentation provides information on “pass through” programs whose support flows through the Department of Employment and Economic Development. These programs are financed by general fund, workforce development fund or other special revenue fund resources.
Minnesota Economic Development and Job Creation Programs Program Business Development Business Development Office Description Statutory Authority Administering Agency Funding FY 2010 (as of 8-31-09) General Fund, federal, fees. $3,100,000
Provision of direct business assistance and coordination of resources to encourage and assist business expansion. Services provided through: business development specialists; Positively Minnesota marketing initiative; manufacturers’ advocate, targeted assistance (ex, biosciences, renewable energy); provision of information and analysis as needed on business financing, site selection and real estate. Entrepreneurship Facilitate small business and Small start-up and resource Business coordination and partnering; Development special emphasis on science and technology. Small Business Development Center Services, Small Business Assistance Office, Office of Science and Technology, SBIR.
116J.011
DEED
116J.656116J.85 and federal law
DEED
$1,275,000
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Anita
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Research
Source: MMB FY10-11 Budget Documents
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Business Finance Minnesota Investment Fund Provides financing for business expansion and relocation including land or building acquisition, construction, equipment, and infrastructure improvements. Match required, generally capped financing. Assistance targeted to minority owned businesses for job creation in low income areas. Partnerships with non-profits to provide technical and funding assistance. Provides low interest small business development loans for manufacturing and industrial projects. Uses tax exempt industrial revenue bonds. Revolving loans for rehabilitation in greater MN. 116J.8731 DEED
General Fund, bonds, special funds, revolving loan funds. $5,239,000
Urban Initiative Program
116M
DEED
$3,360,000
Agricultural and Economic Development Program Rural Rehabilitation Development Account Indian Business Loans
41A.022
DEED
$932,000
116J.955
DEED
$1,055,000
21st Century Minerals Fund
Loans to support development of Indian owned and operated business for job creation among native American community. Investment in specific projects related to minerals processing and state mining industry.
116J.64
DEED
$2,245,000
116J.423
DEED
$15,426,000
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Anita
Neumann,
House
Research
Source: MMB FY10-11 Budget Documents
September
25,
2009
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Community Finance Contamination Cleanup Grant Program and Minnesota Cleanup Revolving Loan Fund Redevelopment Grant Program Small Cities Development Program Greater MN Business Development Public Infrastructure Program and Bioscience Public Infrastructure Grant Program. Transit Improvement Area Loan Program Credit Enhanced Bond Program Provides state and federal 116J.551grant funding to local 116J.558 governments and private entities for contaminated site cleanup DEED
General Fund, federal, revolving loan and special funds $8,4000,000
Resources made available to local governments for site redevelopment Allocates federal CDBG money for rehabilitation, housing, local infrastructure and revitalization projects. Provides state match. Resources made available to local governments for infrastructure projects to promote and support general business development and targeted bioscience business development.
116J.571116J.575 116J.980
DEED
Bonding: $7,750,000 $35,300,000
DEED
116J.431 and 116J.435
DEED
Bonding: $7,000,000-Greater MN Business Development $9,000,000-Bioscience Public Infrastructure Statutory language only
MN Trade Office
Loans to eligible organizations for development of areas near transit facilities. Increase access to investment capital for community development with support of DEED and PFA. State guarantee of debt service. Promotion of state to spur business development in state.
469.35 Created in 2008. 446A.087
DEED
PFA
116J.996
DEED
$1,400,000
Presentation
to
Jobs
Task
Force
Anita
Neumann,
House
Research
Source: MMB FY10-11 Budget Documents
September
25,
2009
Page
4