Purpose

The bill would provide one-time funding from the state general fund to support economic development and help retain jobs in small businesses. Specifically, it would fund grants to two cities (St. Paul and West St. Paul) to work on local business growth and job retention.

Main Provisions

• Appropriation to St. Paul: $2,000,000 in FY 2027 from the general fund to the commissioner of employment and economic development for a grant to the West Side Community Organization. The goal is to support economic development and job retention for small businesses employing the equivalent of ten or fewer fulltime employees.
• Uses of funds for St. Paul grant: Technical assistance; establishing revolving loan funds; issuing loans (including no-interest loans and forgivable loans); and grants to small businesses for operating expenses. This is a one-time appropriation available until June 30, 2028.
• Appropriation to West St. Paul: $2,000,000 in FY 2027 from the general fund to the commissioner of employment and economic development for a grant to West St. Paul, to be used in collaboration with the Residents of Color Collective. The goal is the same as above—economic development and job retention for small businesses employing the equivalent of ten or fewer fulltime employees.
• Uses of funds for West St. Paul grant: Technical assistance; establishing revolving loan funds; issuing loans (including no-interest loans and forgivable loans); and grants to small businesses for operating expenses. This is also a one-time appropriation available until June 30, 2028.

Significant Changes to Existing Law

• This bill does not appear to modify existing statutes. It creates one-time appropriations from the general fund to fund specific local economic development and small business support initiatives in St. Paul and West St. Paul, rather than changing long-term law. The primary effect is to authorize these targeted grants and eligible uses of the funds for a limited period.

Notes

• The funds are intended for small businesses employing ten or fewer fulltime employees.
• Eligible uses include financial tools (revolving loan funds, no-interest loans, forgivable loans) and operating expenses, plus technical assistance.

Relevant Terms

• general fund
• commissioner of employment and economic development
• grant
• St. Paul
• West Side Community Organization
• West St. Paul
• Residents of Color Collective
• economic development
• job retention
• small businesses
• ten or fewer fulltime employees
• technical assistance
• revolving loan funds
• no interest loans
• forgivable loans
• operating expenses
• onetime
• June 30, 2028