Purpose

To provide funding from Minnesota's workforce development resources to support entrepreneurship and workforce development efforts by the Latino Economic Development Center (LEDC). The aim is to help microentrepreneurs start, grow, and sustain businesses, and to build pathways into trades, technology, and STEM fields.

Main Provisions

• Appropriation of 2,000,000 in fiscal year 2026 and 2,000,000 in fiscal year 2027 from the workforce development fund.
• Allocation of these funds as a grant to the Latino Economic Development Center (LEDC) through the commissioner of employment and economic development.
• Grants are intended to support LEDC in providing services to microentrepreneurs, including training, consulting, capacity building, and general operations.
• Proceeds may also support assistance for prospective entrepreneurs in the startup phase, introducing them to key business concepts such as startup readiness and career pathways into trades, green lending, technology, coding, STEM careers, translation services, and manufacturing.

Funding and Implementation Details

• Source: Workforce development fund.
• Recipient: LEDC (Latino Economic Development Center).
• Responsible authority: Commissioner of employment and economic development.
• Duration: Funds allocated for fiscal years 2026 and 2027.

Use of Funds and Activities Supported

• Grant proceeds may be used to:
  • Deliver training workshops.
  • Provide one-on-one consultations to businesses.
  • Support capacity building for microentrepreneurs and LEDC’s general operations.
  • Assist prospective entrepreneurs in startup processes by teaching business concepts and readiness.
  • Introduce entrepreneurs to pathways into trades, green lending, technology, coding, STEM careers, translation services, and manufacturing.

Beneficiaries and Intended Impacts

• Primary beneficiaries: Microentrepreneurs and prospective entrepreneurs, particularly those connected with or served by LEDC.
• Expected outcomes: Increased business startup readiness, expanded access to financing and resources (including green lending and technology-related areas), and stronger ties to career pathways in trades, STEM, and manufacturing.

Significance and Potential Policy Impact

• Expands targeted funding for entrepreneurship support and workforce development.
• Emphasizes bilingual or translation-enabled services and access to technology and STEM-related training, potentially broadening participation in entrepreneurship.
• May create a more formalized funding stream for LEDC’s programs and similar initiatives, influencing future budget decisions or program design in Minnesota’s workforce development landscape.

Changes to Existing Law

• Creates an appropriation from the workforce development fund to the DEED commissioner for LEDC grants, which constitutes a new funding allocation rather than a broad statutory change to the operations of LEDC or DEED.
• No explicit changes to existing statutory definitions or program authorities beyond establishing this requested grant.

Relevant Terms workforce development fund commissioner of employment and economic development grant Latino Economic Development Center (LEDC) microentrepreneurs training workshops one-on-one consultations capacity building startup process business startup readiness career pathways into trades green lending technology coding STEM careers translation services manufacturing prospective entrepreneurs startup concepts operations funding