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OPERATING GUIDELINES FOR <br /> REVOLVING LOAN FUNDS SEEDED BY <br /> STATE MINNESOTA INVESTMENT FUND AWARDS <br /> A local unit of government may establish a Revolving Loan Fund (RLF)with funds from a variety of sources.The <br /> guidelines outlined in this document pertain only to a RLF seeded with funds received through the repayment of <br /> a loan provided from the state-funded Minnesota Investment Fund (MIF)or Economic Recovery Fund programs <br /> administered through the Department of Employment and Economic Development or its predecessors. <br /> The local government must follow the RLF guidelines that were submitted with the initial MIF application and <br /> approved by your DEED Senior Loan Officer. Although the guidelines provide the policies and procedures for the <br /> reuse of these funds, the RLF policies and procedures must also adhere to the same requirements that are <br /> followed by the state's Minnesota Investment Fund program. In addition to the local government's <br /> underwriting criteria, the guidelines from Minn. Stat. 116J.8731 (some of which is summarized below) and from <br /> the Minnesota Business Subsidy Law(Minn. Stat. 116J. 993 and 116J.994) must be included in the policies and <br /> procedures <br /> General Purposes and Guidelines for RLFs Seeded by the Minnesota Investment Fund <br /> Purpose and Gools <br /> The purpose of the RLF is to provide financial and technical assistance for the creation and retention of new <br /> employment. These objectives may be accomplished through the following means: <br /> 1. Create/retain permanent private sector jobs to fuel above-average economic growth consistent with <br /> environmental protection; <br /> 2. Investment in technology and equipment that increase productivity and provide for higher wages; <br /> 3. Leverage of private investment to ensure economic renewal and competitiveness; <br /> 4. Increase the local tax base to guarantee a diversified industry mix; <br /> 5. Improve the quality of existing jobs, based on increases in wages or improvements in the job duties, <br /> training, or education associated with those jobs; <br /> 6. Improve employment and economic opportunities and create a reasonable standard of living; and <br /> 7. Enhance productivity growth through improved manufacturing or new technologies. <br /> One way to meet these objectives is to assist businesses that have location options outside Minnesota. <br /> These firms bring income into the state and raise the overall standard of living. <br /> Eligible Expenditures <br /> The MIF-seeded funds may be used in a variety of ways include example noted below. More information is <br /> available in Minn. Stat. 116J.8731 and through conversations with your loan officer. <br /> 1. Provide loans, loan guarantees, interest buy-downs, and other forms of participation, ensuring that RLF <br /> funds are matched by private financing. <br /> 2. Fund strategic investments in renewable energy market development. Any expenditure for external <br /> marketing for renewable energy market development is not subject to the matching requirements <br /> listed above. <br /> 3. Provide entrepreneurs with training, other technical assistance, and financial assistance as <br /> defined by federal guidelines. <br /> July,2014 1 <br />