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HF 3061

African Development Center, social benefit corporations, and small businesses in the St. Paul Midway area funding provided; reports required; and money appropriated.

2025-2026 Regular Session Introduced by Samakab Hussein

HF 3061 provides one-time FY2026 funding to support minority and immigrant small businesses, expand SBC employment, and grow St. Paul Midway area jobs, with required impact reporti

Introduction and first reading, referred to Workforce, Labor, and Economic Development Finance and Policy
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Bill Summary · HF 3061

Summary of HF 3061 (2025-2026) – Minnesota

Purpose and Intent

HF 3061 authorizes targeted funding and reporting requirements to support economic development in Minnesota, with a focus on:
- the African Development Center (ADC),
- social benefit corporations (SBCs), and
- small businesses in the St. Paul Midway area, including African immigrant-owned businesses.

The bill provides one-time general fund appropriations for fiscal year 2026, with performance reporting due from grant recipients.

Key Provisions

Section 1 – Appropriation: African Development Center

  • Amount: $4,000,000 from the general fund in FY 2026 to the Department of Employment and Economic Development (DEED) for a grant to the African Development Center.
  • Availability: One-time appropriation, available until June 30, 2027.
  • Authorized uses (sub-allocations):
    • $2,000,000 for loans to assist small business owners in purchasing commercial real estate.
    • $910,000 for loan loss reserves to support loan volume growth and attract additional capital.
    • $1,090,000 for increasing organizational capacity building.

Section 2 – Appropriation: Social Benefit Corporations

  • Amount: $500,000 from the general fund in FY 2026 to DEED for grants to social benefit corporations (as defined in Minnesota Statutes §304A.011).
  • Purpose: To expand employment opportunities for underserved, low-income, and hard-to-employ populations within Minnesota.
  • Eligible activities: Assist SBCs that currently employ up to 15 employees to grow to about 30 employees; funds may subsidize wages, support workforce training, and provide employment services (e.g., job coaching, retention initiatives).
  • Availability: One-time appropriation, available until June 30, 2027.
  • Reporting: Each grant recipient must report within one year on grant use, number of new hires, retention, and job-satisfaction metrics.

Section 3 – Appropriation: Small Business Job Creation in the St. Paul Midway Area

  • Amount: $300,000 from the general fund in FY 2026 to DEED for grants aimed at supporting small businesses in the St. Paul Midway area, with a focus on African immigrant business owners.
  • Purpose: Promote economic growth, business stability, and workforce expansion in Midway.
  • Availability: One-time appropriation, available until June 30, 2027.
  • Reporting: Recipients must report within one year on grant use, number of new hires, and the broader economic impact.

Who is Affected

  • African Development Center (as a grant recipient/partner)
  • Social benefit corporations operating in Minnesota (and their employees)
  • Small businesses in the St. Paul Midway area, particularly African immigrant-owned firms
  • The Minnesota workforce, especially underserved and hard-to-employ populations

Timelines and Reporting

  • All appropriations are one-time, FY 2026, with funds expiring June 30, 2027 if not expended.
  • Recipients must submit impact reports within one year of receiving a grant, detailing uses, employment gains, and sustainability metrics.

Potential Impact

  • Increased access to capital and real estate financing for minority-owned and immigrant-led small businesses.
  • Expanded employment opportunities for underserved populations through SBC-focused grants.
  • Economic development momentum in the St. Paul Midway area, supporting workforce growth and business stability.
  • Enhanced data collection on program outcomes via mandatory reporting.

Compiled from official sources — confirm details with the bill’s official record.

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