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DEFINITION OF GRANTOR <br />Q: In the definition of "local government agency," what determines whether a nonprofit, <br />community development corporation, or other entity was "created by or authorized by a local <br />government"? <br />A: DTED considers a nonprofit or other entity to have been "created by or authorized by a local <br />government" if there is a written, legal agreement with a local govemment agency explicitly <br />authorizing the entity to provide business assistance with funding received from the local <br />government agency. <br />DEFINITION OF RECIPIENT <br />Q: What kind of reporting is necessary for anon-profit with less than 100 employees but is <br />considering a loan request for $30,000? <br />A: Non-profits with less than 100 employees are exempt from reporting regardless of the loan amount. <br />Q: What calculation should be pertormed to determine whether anon-profit has a ratio of <br />highest-to lowest-paid employee that exceeds 10 to 1 determined on the basis of full-time <br />equivalent positions? <br />A: Compare the hourly wages (excluding benefits) of the lowest and highest paid employees. For <br />example, if the highest-paid employee receives an annual salary and the lowest-paid employee is <br />paid on an hourly basis, divide the annual salary of the former by 2080 (40 hours x 52 weeks = <br />2080) to determine an hourly wage that can be compared to the hourly wage of the part-time <br />employee. <br />FINANCIAL ASSISTANCE WITH SEPARATE REQUIREMENTS <br />Q: Are the four types of financial assistance noted in Minn. Stat. §116J.994, subdivision 7(c) <br />subject only to the separate reporting requirements and exempt from other requirements for <br />business subsidies? <br />A: Yes, the four types of financial assistance noted in Minn. Stat. §116J.994, Subdivision 7(c) are <br />subject to the reporting requirements and penalties for failing to report outlined in that subdivision, <br />and to the reporting requirements for grantors (Minn. Stat. §116J.994, Subdivision 8), but they are <br />not subject to other requirements that pertain only to business subsidies (e.g. the requirement to <br />hold a public hearing before awarding a business subsidy, the requirement to develop wage and job <br />goals for business subsidies, the requirement to enter into a business subsidy agreement that <br />includes the designated information, etc.). <br />Q: Are the four types of financial assistance noted in Minn. Stat. §116J.994, Subdivision 7(c) as <br />having separate reporting requirements exempt from those separate reporting requirements <br />if they are in amounts of less than $25,000? <br />A: Yes, if financial assistance that would have been subject to reporting under Minn. Stat. §116J.994, <br />Subdivision 7(c) meets one of the other exemptions noted in Minn. Stat. §116J.993, Subdivision 3, <br />it is exempt from reporting requirements. <br />Department of Trade and Economic Development Page 3 of 5 February 20, 2001 <br />