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9. ANTI-PIRATING RULE <br /> Funds may not be used to assist for-profit businesses,including expansions,as well as infrastructure <br /> improvement projects or business incubator projects designed to facilitate business relocation IF <br /> a. The funding will be used to assist directly in the relocation of a plant,facility or operation;and <br /> b. The relocation is likely to result in a significant loss of jobs in the labor market area from which <br /> the relocation occurs <br /> The following are definitions to assist in determining if a business location falls under these provisions: <br /> • Labor Market Area(LMA):An LMA is an economically integrated geographic area where <br /> individuals can live and work within a reasonable distance or can readily change employment without <br /> changing their place of residence. <br /> • Operation:A business operation includes,but is not limited to,any equipment,production <br /> capacity or product line of the business. <br /> • Significant Loss of Jobs <br /> • A loss of jobs is significant if: <br /> ■ The number of jobs to be lost in the LMA in which the affected business is currently <br /> located is equal to or greater than one-tenth of on percent of the total number of <br /> persons in the labor force of that LMA; <br /> OR in all cases <br /> ■ A job is considered to be lost due to the provision of CDBG assistance if the job is <br /> relocated within three years of the provision of assistance to the business. <br /> ■ Notwithstanding the above definition,a loss of 25 jobs or fewer does not sonstitute a <br /> significant loss of jobs. <br /> Before directly assisting a business with CDBG funds,the state and UGLG shall include appropriate <br /> language in the written agreement with the assisted business to ensure that no pirating has occurred. <br /> In addition to other programmatic clauses,the written agreement shall include: <br /> • A statement from the assisted business as to whether the assisted activity will result in the <br /> relocation of any industrial or commercial plant,facility,or operation from one LMA to another, <br /> and,if so,the number of jobs that will be relocated from each LMA. <br /> • If the assistance will not result in a relocation covered by this section,a written certification from <br /> the assisted business that neither it,nor any of its subsidiaries,have plans to relocate jobs at the <br /> time the agreement is signed that would result in a significant job loss as defined in this rule;and <br /> • The agreement shall provide for reimbursement of any assistance provided to,or expanded on <br /> behalf of,the business in the event that assistance results in a relocation prohibited under this <br /> section. <br /> XV. STATE REQUIREMENTS <br /> 1. MINNESOTA INVESTMENT FUND(MS.116J.8731) <br /> Wage Goals-Businesses receiving assistance must pay each employee total compensation, <br /> including benefits not mandated by law,that on an annualized basis is equal to at least 110%of the <br /> federal poverty level for a family of four,which as of March 1,2012 is$ 9-12.82 er hour. The Formatted:Not Highl ght <br /> federal poverty level changes annually. <br /> Retail Businesses are not prohibited from receiving federal ED assistance. <br /> Forgivable Loan Policy and Application P O N [ R 1 U R <br /> INAWREE] <br /> Page 9of20 <br />