Purpose

This bill would provide a one-time financial boost from Minnesota’s general fund to support economic development and help small businesses in St. Paul and West St. Paul keep local jobs. The focus is on businesses with ten or fewer full-time employees.

Main Provisions

• Funding and administration
  • Allocates $2,000,000 in fiscal year 2027 from the general fund to the commissioner of employment and economic development (DEED) for grant programs.
  • The grants are targeted to two cities:
  • City of St. Paul, to be distributed with the West Side Community Organization.
  • City of West St. Paul, to work in collaboration with the Residents of Color Collective.
• Purpose and eligible recipients
  • Both grants are for economic development and job retention efforts for small businesses employing ten or fewer full-time employees.
• Allowable uses of funds
  • Technical assistance to small businesses.
  • Establishing revolving loan funds.
  • Issuing loans, including no-interest loans and forgivable loans.
  • Grants to small businesses for operating expenses.
• Time frame and limitations
  • These are one-time appropriations.
  • Funds must be used in a manner consistent with the program and are available until June 30, 2028.

Significance and Changes to Existing Law

• This legislation adds new, targeted funding for local economic development efforts in two Minnesota communities, via DEED and local partners.
• It does not establish ongoing funding; rather, it provides a finite, one-time appropriation for fiscal year 2027 with a deadline of June 30, 2028 for use.
• The bill specifies particular organizational partners (West Side Community Organization and Residents of Color Collective) and outlines the types of financial tools (revolving loan funds, no-interest and forgivable loans) that may be used to support small businesses.

Impact on Stakeholders

• Small businesses in St. Paul and West St. Paul seeking working capital, loan supports, or operating expense assistance could benefit.
• Local organizations (West Side Community Organization and Residents of Color Collective) would play key roles in distributing funds and delivering services.
• The program aims to preserve or increase local employment by supporting businesses with 10 or fewer employees.

Effective Dates and Funding Details

• Fiscal year 2027: $2,000,000 allocated to each city.
• One-time appropriation from the general fund.
• Availability: Funds remain available through June 30, 2028.

What happens next (implementation)

• DEED would administer the grants to the two cities.
• The receiving cities, via their partner organizations, would implement technical assistance, establish revolving loan funds, issue loans (including no-interest and forgivable loans), and provide operating expense grants to qualifying small businesses.

Relevant Terms - general fund - commissioner of employment and economic development - grant - City of St. Paul - West Side Community Organization - City of West St. Paul - Residents of Color Collective - economic development - job retention - small businesses - ten or less fulltime employees - technical assistance - revolving loan funds - loans - no interest - forgivable loans - operating expenses - one-time - available until June 30, 2028 - fiscal year 2027 - Department of Employment and Economic Development (DEED)