Revolving Loan Fund Onetime Exception
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. 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, 2022.
By February 15, 2023, 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.