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Minnesota Job Creation Fund

Minnesota Job Creation Fund. Minnesota’s newest economic development tool providing performance-based incentives for new and expanding businesses. Today we’ll discuss:. Program overview Available Funds & Limits Who is eligible Application & Review Process Awards, Agreements & Disbursements.

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Minnesota Job Creation Fund

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  1. Minnesota Job Creation Fund Minnesota’s newest economic development tool providing performance-based incentives for new and expanding businesses

  2. Today we’ll discuss: • Program overview • Available Funds & Limits • Who is eligible • Application & Review Process • Awards, Agreements & Disbursements

  3. Overview • $24 million biennium allocation from legislature • Program launched January, 2014 • Designed as strategic, transparent & accountable • Pay-for-performance based incentive for business • Remains a modest tool compared to other states

  4. Available Funds • Up to $1,000,000 in job creation awards and capital investment rebates for most types of projects • Up to $2,000,000 in job creation awards and capital investment rebates for large projects • Up to $1,000,000 in capital investment rebates for large investment projects that retain jobs • Funds available based on $1000-$3000 per job based on wages paid and 7.5% rebate on qualified costs

  5. Eligibility & Application • At minimum: • 10 new full-time permanent jobs within two years • $500k invested in real property improvements • Support from local government • Eligibility factors, eligibility & application checklist and application at www.mn.gov/deed

  6. Application Review: Scoring • Does project meet basic eligibility? • Review of economic factors: • Employment • Jobs & wages • Capital investment • Diversify or strengthen economy

  7. Application Review: Scoring (cont) • Review of Business Factors • Product/industry outlook • Business performance • Sales outside MN or import substitution • Financing commitment/ready to go • Other review factors: • ROI • Local government contribution

  8. Awarding a project • Funding levels determined based on DEED’s scoring and review • “Designated” as a job creation fund business • Project can begin after designation by DEED • For example, no construction, contracts, bid-letting, permits before designation

  9. Business Subsidy Agreement (BSA) • BSA signed between DEED & business • BSA outlines two-year (and other) job creation, wage & capital investment goals, funding levels, reporting requirements, etc. • Term of up to 7 years in Greater MN • Allows for funding disbursement when it makes sense to the business

  10. How does a business get funds? • Invest at least $500k within one year of designation • Create at minimum 10 new full-time jobs within two years of designation • Hold jobs in place for a year • Provide documentation and complete annual reports & disbursement requests with assistance from local government

  11. Other Considerations • Job Listing agreement for projects receiving $200k or more • Prevailing wage applies for projects receiving $200k or more in funds • Rulemaking

  12. Questions? Contact: Heather Rand, Business Development Representative 218-302-8408 Heather.Rand@state.mn.us Emily Johnson, Program Manager 651-259-7450 Emily.A.Johnson@state.mn.us http://mn.gov/deed/business/financing

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