Purpose

Provide a one-time financial infusion to support the Entrepreneur Fund. The state general fund money is appropriated to the Commissioner of Employment and Economic Development to grant to the Entrepreneur Fund. The goal is to capitalize the Fund’s revolving loan funds so they can meet financing needs for small, for-profit businesses in northeast Minnesota.

Main Provisions

• Amount and timing: $1,000,000 from the general fund, in fiscal year 2026.
• Recipient and mechanism: A grant from the Commissioner of Employment and Economic Development to the Entrepreneur Fund.
• Use of funds: To capitalize revolving loan funds used to provide loans and loan programs.
• Geographic and economic focus: Northeast Minnesota and its unmet financing needs.
• Scope of business activities: For-profit startup ventures, expansions of existing businesses, and ownership transitions.
• Nature of appropriation: One-time appropriation (not ongoing).

Significant Changes to Existing Law

• Introduces a new one-time appropriation directed to the Entrepreneur Fund to capitalize its revolving loan funds.
• Allocates funding for a targeted regional financing program (northeast Minnesota) through the existing state loan ecosystem, via the Entrepreneur Fund and DEED.

Fiscal Impact and Administration

• Funding comes from the general fund as a one-time appropriation in FY 2026.
• Administration remains with the Commissioner of Employment and Economic Development, which will grant the funds to the Entrepreneur Fund to support revolving loan activities.

Geographic and Economic Focus

• Northeast Minnesota is targeted for this financing support.
• Aims to help small, for-profit businesses start, grow, or transfer ownership by improving access to capital through revolving loan funds.

Implementation Notes

• This is a targeted, time-limited funding item and does not establish ongoing program funding beyond the stated one-time appropriation.

Relevant Terms - general fund - appropriation - grant - Commissioner of Employment and Economic Development - Entrepreneur Fund - revolving loan funds - unmet financing needs - northeast Minnesota - for-profit - startup - expansion - ownership transition - one-time appropriation - fiscal year 2026