Laserfiche WebLink
Eligible Projects <br /> Assistance must be evaluated on the existence of the following conditions as noted in Minn. Stat. 116J.8731: <br /> 1. Creation or retention of jobs, or the improvement of jobs as measured by wages, skills or knowledge; <br /> 2. Increase in the tax base; <br /> 3. Attraction of private funds to the project; <br /> 4. Incapacity of local communities and finance partners to finance project; <br /> 5. Results in higher wage levels or workforce skills; <br /> 6. Supports development of microenterprises, as defined by federal guidelines,through technical <br /> assistance or financial assistance. <br /> 7. Need for assistance to retain existing business; <br /> 8. Importance of assistance to attract out-of-state business; and <br /> 9. The project promotes or advances the green economy. <br /> The assistance cannot meet solely 7. or 8.; other conditions must also be present. <br /> Eligible Activities <br /> RLF's may be used to fund a variety of business activities including: <br /> 1. Acquisition of land <br /> 2. Construction or rehabilitation of facilities <br /> 3. Site improvements <br /> 4. Utilities or infrastructure <br /> 5. Machinery and Equipment <br /> 6. Training <br /> 7. Working capital <br /> Advance approval from DEED is necessary if the local government would like to provide financing for <br /> activities not listed above. Approval is more likely to occur in projects that relate to business development <br /> and involve other local government funds. <br /> Ineligible Activities <br /> In contrast to federal MIF funds, there are industry limitations on how state MIF RI-Fs may be used. State <br /> MIF RI-Fs may not be used for the operation, construction or expansion of a casino, a sport facility that that <br /> has a professional sports team as a principal tenant or any firm engaged in retailing merchandise. All <br /> assistance should follow the approved RLF guidelines. Please call your loan officer to discuss any <br /> prospective financing. <br /> Wage Gools <br /> Businesses receiving RLF-State MIF assistance must pay each employee total compensation, including <br /> benefits not mandated by law, that on an annualized basis is equal to at least 110%of the federal poverty <br /> level for a family of four,which as of February 1, 2015 is$12.82 per hour. Each year's compensation level <br /> changes and can be found on DEED's Business Finance MIF website. <br /> Other Eligible Uses of the Funds <br /> Minn. Stat. 116J.8731 allows local governments to loan or grant RLF funds to a regional development <br /> commission, other regional entities, or a certain statewide community capital funds to provide the local <br /> match required for capitalization of a regional or statewide RLF. Unlike federal MIF funds, state MIF funds <br /> held by local governments never lose their state identify and must follow all applicable laws and regulations. <br /> July,2014 2 <br />