Revolving Loan Fund Onetime Exception
The Minnesota Legislature 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 allowed a home rule charter or statutory city, county, or town that had 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 needed 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 exercised 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 had to submit the MIF RLF Request for Exception Form prior to June 1, 2020. The program is now closed.
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.