Minnesota Job Creation Fund Minnesota’s newest economic development tool providing...
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Minnesota Job Creation Fund Minnesota’s newest economic development tool providing performance-based incentives for new and expanding businesses
Transcript of Minnesota Job Creation Fund Minnesota’s newest economic development tool providing...
Minnesota Job Creation Fund
Minnesota’s newest economic development tool providing
performance-based incentives for new and expanding businesses
Today we’ll discuss:Program overviewAvailable Funds & LimitsWho is eligibleApplication & Review ProcessAwards, Agreements & Disbursements
Overview$24 million biennium allocation from legislatureProgram launched January, 2014Designed as strategic, transparent & accountablePay-for-performance based incentive for businessRemains a modest tool compared to other states
Available FundsUp to $1,000,000 in job creation awards and capital
investment rebates for most types of projectsUp to $2,000,000 in job creation awards and capital
investment rebates for large projectsUp to $1,000,000 in capital investment rebates for
large investment projects that retain jobsFunds available based on $1000-$3000 per job based
on wages paid and 7.5% rebate on qualified costs
Eligibility & Application At minimum:
10 new full-time permanent jobs within two years
$500k invested in real property improvementsSupport from local governmentEligibility factors, eligibility & application
checklist and application at www.mn.gov/deed
Application Review: ScoringDoes project meet basic eligibility?Review of economic factors:
Employment Jobs & wagesCapital investmentDiversify or strengthen economy
Review of Business FactorsProduct/industry outlookBusiness performanceSales outside MN or import substitutionFinancing commitment/ready to go
Other review factors:ROI Local government contribution
Application Review: Scoring (cont)
Awarding a projectFunding levels determined based on DEED’s
scoring and review“Designated” as a job creation fund businessProject can begin after designation by DEED
For example, no construction, contracts, bid-letting, permits before designation
Business Subsidy Agreement (BSA)BSA signed between DEED & businessBSA outlines two-year (and other) job
creation, wage & capital investment goals, funding levels, reporting requirements, etc.
Term of up to 7 years in Greater MNAllows for funding disbursement when it
makes sense to the business
How does a business get funds?Invest at least $500k within one year of
designationCreate at minimum 10 new full-time jobs
within two years of designationHold jobs in place for a yearProvide documentation and complete annual
reports & disbursement requests with assistance from local government
Other ConsiderationsJob Listing agreement for projects receiving
$200k or morePrevailing wage applies for projects receiving
$200k or more in fundsRulemaking
Questions?Contact:
Heather Rand, Business Development Representative218-302-8408
Emily Johnson, Program Manager 651-259-7450
http://mn.gov/deed/business/financing
