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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 government 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 a non-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 performed to determine whether a non-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 />