HF5139

Purpose

Create a new grant program to help start and finance cooperative businesses in Minnesota. The program focuses on cooperatives that operate processing facilities or that market a product or service.

Eligible cooperatives

To qualify, a cooperative must: - Be organized under Minnesota cooperative statutes (chapters 308A, 308B, or 308C). - Certify that control of the cooperative comes from its patrons or people actively involved in its activities. - Primarily process, market, or provide services for products or services produced in Minnesota. - Primarily serve Minnesota-based patrons. - Not allow voting rights for nonpatrons.

Grant scope and uses

The commissioner may establish and run the cooperative grants program. Grants may cover up to $50,000 per eligible cooperative and can be used for: - Feasibility studies and marketing analysis - Organizational development - Financing and managing new cooperatives - Product development - Development of business and marketing plans - Predesign work for facilities (including site analysis, bid specifications, preliminary blueprints and schematics) - Completion of purchase agreements and other necessary legal documents

Matching funds

Grant dollars must be matched on a dollar-for-dollar basis with other money or in-kind contributions.

Administrative context

This is a new program created under Minnesota Statutes chapter 116J, section 408, specifically titled “Cooperative Grants.” It assigns a role to the state commissioner to administer and award these grants.

Significance

• Supports startup, patron-driven business models.
• Encourages Minnesota-produced goods and services.
• Provides technical and financial backing for early-stage cooperative development, including planning, design, and legal readiness.

---

Relevant Terms cooperative, grant program, Minnesota Statutes chapter 116J, 116J.408, patron, nonpatron voting rights, eligible grantees, feasibility, marketing analysis, organizational development, financing, product development, business plan, marketing plan, predesign of facilities, site analysis, bid specifications, blueprints, schematics, purchase agreements, in-kind contributions, dollar-for-dollar match, Minnesota-produced, cooperatives organized under chapters 308A, 308B, 308C, commissioner.