Revolving Loan Fund Onetime Exception
Onetime Exception to Restrictions on Use of State Funded Minnesota Investment Fund Local Government Loan Repayment Funds
Per Executive Order 20-15: Effective immediately, in an effort to make more resources available to businesses impacted by Executive Orders 20-04 and 20-08 (certain business establishment closures), any local unit of government or lending partner that has revolving loan funds that were provided by the State Minnesota Investment Fund program appropriations or Minnesota Investment Fund Disaster program appropriations, may issue loans to retail and service providers over the next 90 days.
Other requirements remain - full State guidelines for the use of these funds can be found at https://mn.gov/deed/business/financing-business/deed-programs/mif. Local units of government must also continue to follow their individual revolving loan fund guidelines.
To determine if funds are available near you, please contact the local government directly. Cities and counties listed here have previously reported revolving loan funds, but may not currently have balances available for lending.
The Minnesota Legislature has authorized a onetime exception to how revolving loan fund (RLF) dollars seeded from State funded Minnesota Investment Fund (MIF) projects are used. These dollars have been retained by local units of government from repayments of their MIF grants. The funds are generally required to be re-used for economic development projects in their jurisdiction.
The onetime exception would allow a home rule charter or statutory city, county, or town that has uncommitted money in their RLF fund to use 80% of the balance as a general purpose aid for any lawful expenditure. In order to be eligible for the exception, the city, county or town would need to return 20% of the uncommitted balance to the State’s general fund prior to June 30, 2020.
By February 15, 2021, any home rule charter or statutory city, county, or town that exercises the option to utilize 80% of their balance as general purpose aid must submit to the chairs of the legislative committees with jurisdiction over economic development policy and finance, an accounting and explanation of the use and distribution of the funds.
In order to take advantage of the onetime exception, the local unit of government must submit the MIF RLF Request for Exception Form below prior to June 1, 2020. Once the Request for Exception has been approved by the DEED Loan Officer, you will receive authorization and instructions on how to remit the required 20% of the RLF balance to the State general fund.
MIF RLF Request for Exception Form
A list of commonly asked questions can be found under the FAQ tab. For additional questions regarding the onetime exception or state funded RLF balances, please contact Lisa Dargis at 651-259-7446.