Subdivision 1. Organization. The commissioner shall make challenge grants to regional organizations, for the purpose of providing financial assistance to encourage private investment, to provide jobs or job enhancement for low-income persons, and to promote economic development in the rural areas of the state.
Subd. 2. Funding regions. The commissioner shall divide the state outside of the metropolitan area as defined in section 473.121, subdivision 2, into six regions. A region's boundaries must be coterminous with the boundaries of one or more of the development regions established under section 462.385. The commissioner shall allocate all funds remaining in each regional subaccount of the rural rehabilitation account, as established under section 116J.955, to each respective regional organization. The money designated to each region must be used for assistance authorized in this section.
Subd. 3. Selection of organizations to receive challenge grants. The commissioner shall select at least one organization for each region to receive the challenge grants and shall enter into grant agreements with the organizations. An organization must be a nonprofit corporation and must demonstrate that:
(1) its board of directors includes citizens experienced in rural development, representatives of the regional development commissions, and representatives from all geographic areas in the region;
(2) it has the technical skills to analyze projects;
(3) it is familiar with other available public and private funding sources and economic development programs;
(4) it can initiate and implement economic development projects; and
(5) it can establish and administer a revolving loan account.
Subd. 4. Revolving fund. A regional organization shall establish a commissioner certified revolving fund to promote economic development in rural Minnesota. Funds may be used to provide loans, loan guarantees, interest buy-downs, and other forms of participation with private sources of financing, provided that the financial assistance must be for a principal amount that does not exceed one-half of the cost of the project for which financing is sought.
Subd. 5. Assistance criteria. Projects supported through the challenge grant program must be used principally to benefit low-income persons by:
(1) creating new jobs, job enhancement, or retaining existing jobs;
(2) increasing the local tax base;
(3) demonstrating that investment of public dollars induces private funds;
(4) providing higher wage levels to the community or adding value to current workforce skills;
(5) retaining existing business; or
(6) attracting out-of-state business.
Subd. 6. [Repealed, 2003 c 128 art 13 s 40]
Subd. 7. Revolving fund administration. Repayment amounts must be deposited in the regional revolving fund for further distribution by the regional organization, consistent with the loan criteria specified in subdivisions 4 and 5.
Subd. 8. Rules. The commissioner shall adopt rules to implement the duties specified in this section.
Subd. 9. [Repealed, 2003 c 128 art 13 s 40]
Subd. 10. [Repealed, 2003 c 128 art 13 s 40]
Subd. 11. Reporting requirements. An organization that receives a challenge grant shall:
(1) submit an annual report to the commissioner by August 30 for the preceding fiscal year that includes an account of loans made, written off, and fully paid during the calendar year, the source and amount of money collected and distributed by the regional revolving fund, and the funds' cash balance and loans receivable; and
(2) provide for an independent annual audit to be performed in accordance with generally accepted accounting practices and auditing standards and submit a copy of each annual audit report to the commissioner.
1987 c 384 art 3 s 18; 1987 c 386 art 1 s 10; 1988 c 615 s 6; 1989 c 335 art 4 s 53,54,106; 1995 c 224 s 64-66; 1996 c 369 s 12; 1999 c 223 art 2 s 18; 2003 c 128 art 13 s 7-12
Structure Minnesota Statutes
Chapters 116J - 116O — Economic Development And Planning
Chapter 116J — Employment And Economic Development
Section 116J.01 — Department Of Employment And Economic Development.
Section 116J.0124 — Plain Language In Written Materials.
Section 116J.0125 — Annual Report To Legislature.
Section 116J.013 — Cost-of-living Study; Annual Report.
Section 116J.014 — Cooperation With Other State Agencies.
Section 116J.03 — Definitions.
Section 116J.035 — Powers Of Commissioner; Rules.
Section 116J.401 — Designation; Duties; Data.
Section 116J.4011 — Labor Market Information Data Production Requirement.
Section 116J.407 — Dairy Modernization.
Section 116J.39 — Office Of Broadband Development.
Section 116J.391 — Coordination Of Broadband Infrastructure Development.
Section 116J.394 — Definitions.
Section 116J.395 — Border-to-border Broadband Development Grant Program.
Section 116J.3951 — Broadband Line Extension Program.
Section 116J.396 — Border-to-border Broadband Fund.
Section 116J.397 — Updated Broadband Deployment Data And Maps.
Section 116J.398 — Broadband Prevailing Wage Exemption.
Section 116J.399 — Broadband Easements.
Section 116J.411 — Definitions.
Section 116J.412 — Account Allocation.
Section 116J.415 — Challenge Grant Program.
Section 116J.417 — Greater Minnesota Child Care Facility Capital Grant Program.
Section 116J.421 — Rural Policy And Development Center.
Section 116J.4221 — Rural Policy And Development Center Fund.
Section 116J.423 — Minnesota 21st Century Fund.
Section 116J.424 — Iron Range Resources And Rehabilitation Contribution.
Section 116J.431 — Greater Minnesota Business Development Public Infrastructure Grant Program.
Section 116J.435 — Innovative Business Development Public Infrastructure Grant Program.
Section 116J.436 — Transportation Economic Development Infrastructure Program.
Section 116J.437 — Coordinating Economic Development And Environmental Policy.
Section 116J.438 — Minnesota Green Enterprise Assistance.
Section 116J.439 — Airport Infrastructure Renewal (air) Grant Program.
Section 116J.548 — Host Community Economic Development Grants.
Section 116J.5491 — Energy Transition Office.
Section 116J.5492 — Energy Transition Advisory Committee.
Section 116J.5493 — Minnesota Energy Transition Plan.
Section 116J.55 — Community Energy Transition Grants.
Section 116J.571 — Creation Of Accounts.
Section 116J.572 — Definitions.
Section 116J.574 — Grant Applications.
Section 116J.5762 — Loan Applications.
Section 116J.5763 — Priorities.
Section 116J.5764 — Loan Terms And Conditions.
Section 116J.5765 — Nonliability.
Section 116J.578 — Bioscience Subsidy.
Section 116J.60 — Promotional Expenses.
Section 116J.617 — Tourism Loan Program.
Section 116J.63 — Sale Of Pamphlets And Publications; Fees; Advertising.
Section 116J.64 — Loans To Indians.
Section 116J.658 — Minnesota Science And Technology Economic Development Project.
Section 116J.871 — Financial Assistance Limitations; Prevailing Wage.
Section 116J.872 — Economic Response Team.
Section 116J.8731 — Minnesota Investment Fund.
Section 116J.8732 — Seed Capital Investment Credit; Commissioner's Responsibilities.
Section 116J.8737 — Small Business Investment Tax Credit.
Section 116J.8738 — Qualified Expansions Of Greater Minnesota Businesses.
Section 116J.8745 — Microenterprise Entrepreneurial Assistance.
Section 116J.8747 — Job Training Program Grant.
Section 116J.8748 — Minnesota Job Creation Fund.
Section 116J.8749 — Main Street Economic Revitalization Program.
Section 116J.551 — Creation Of Accounts.
Section 116J.552 — Definitions.
Section 116J.553 — Grant Applications.
Section 116J.555 — Priorities.
Section 116J.556 — Local Match Requirement.
Section 116J.557 — Cost Recovery Actions.
Section 116J.558 — Effect Of Issuance Of Grants.
Section 116J.66 — Business Assistance.
Section 116J.68 — Bureau Of Small Business.
Section 116J.69 — Uniform Business Licensing Policy.
Section 116J.70 — Definitions.
Section 116J.71 — New Licenses.
Section 116J.72 — Existing Licenses.
Section 116J.73 — Bureau Of Business Licenses; Declaration Of Purpose.
Section 116J.74 — Definitions.
Section 116J.76 — General Functions; Powers And Duties.
Section 116J.77 — Assistance Of Other Agencies.
Section 116J.78 — Comprehensive License Information.
Section 116J.79 — Preapplication Conferences.
Section 116J.80 — Master Application Procedure.
Section 116J.81 — License Coordination And Assistance To Applicants.
Section 116J.82 — Consolidated Hearings.
Section 116J.83 — License Authority Retained.
Section 116J.84 — Services Provided At No Charge.
Section 116J.85 — Federal And Local Government Participation.
Section 116J.86 — Compilation And Maintenance Of Statistical Data.
Section 116J.876 — Definitions.
Section 116J.8761 — Capital Access Program; Creation; Administration.
Section 116J.8762 — Commissioner; Duties.
Section 116J.8763 — Eligible Loans.
Section 116J.8764 — Enrollment Of Loans In Program.
Section 116J.8765 — Reserve Fund; Premiums.
Section 116J.8766 — Claims By Lender To Reserve Fund.
Section 116J.8767 — Subrogation Of Claims.
Section 116J.8768 — Excess Reserve Funds.
Section 116J.8769 — Termination.
Section 116J.8770 — Equity Investments.
Section 116J.881 — Small Business Loan Guarantee Program.
Section 116J.955 — Rural Rehabilitation Revolving Account.
Section 116J.966 — Commissioner's Trade Promotion Duties.
Section 116J.976 — State Approval Of Government Procurement Agreements.
Section 116J.978 — Minnesota Trade Offices In Foreign Markets.
Section 116J.9781 — Invest Minnesota.
Section 116J.979 — Minnesota Step Grants.
Section 116J.980 — Community Development.
Section 116J.982 — Community Development Corporations.
Section 116J.9922 — Central Minnesota Opportunity Grant Program.
Section 116J.9923 — Telecommuter Forward! Certification.
Section 116J.9924 — Targeted Community Capital Project Grant Program.
Section 116J.993 — Definitions.
Section 116J.994 — Regulating Local And State Business Subsidies.
Section 116J.995 — Economic Grants.
Section 116J.996 — Military Reservist Economic Injury And Veteran-owned Small Business Loans.