Committee hears expansion for emerging entrepreneur loans, lays bill over

Representative Frazier presented House File 4097, a fiscal bill to expand two small-business programs, and the committee approved an author amendment that adds $1 million to the package. Frazier said the amended bill would add $2,000,000 to the emerging entrepreneur loan revolving account and $1,000,000 to the Small Business Assistance Partnership program, administered through established community partners.

Zach Cabot, vice president of economic opportunity at the Initiative Foundation, testified that the programs help entrepreneurs access both advising and capital and provided examples of Minnesota businesses that used the loan program and partnership supports to expand. Cabot warned that recent reductions or pauses in federal programs such as SBA prime awards, certain USDA business development grants and CDFI technical assistance awards have increased reliance on state programs.

Committee members questioned program eligibility and longevity. Representative Mueller asked whether businesses qualify only in early years after founding; Devin Boudry of the Department of Employment and Economic Development (DEED) said there is no strict five-year limit, though programs are typically targeted toward firms seeking to grow. Frazier said the additional $1 million would be drawn from interest on the Forward Fund rather than principal.

The bill was laid over as amended for further consideration during upcoming budget discussions.