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Frequently Asked Questions

About the Business Subsidy Law Minn. Stat. 116J.993 to 116J.995

The information provided in this document does not, and is not intended to, constitute legal advice. This document is intended to inform agencies of DEED's responses to frequently asked questions about the business subsidy law and does not serve as a substitute for statutory language. State and local government agencies should seek legal guidance from their legal counsels.

The following is the Department of Employment and Economic Development's (DEED) responses to frequently asked questions regarding Minnesota Statutes, sections 116J.993 to 116J.995.

Note: Questions can be directed to Minnesota Department of Employment and Economic Development, Analysis Evaluation, 1st National Bank Building, 332 Minnesota Street, Suite E200, St. Paul, MN 55101-1351, Phone 651-259-7160 or by fax 651-215-3841.

Business Subsidy Criteria

A business subsidy may not be granted until the grantor has adopted criteria after a public hearing. The criteria may not be adopted on a case-by-case basis. The criteria must set specific minimum requirements that recipients must meet in order to be eligible to receive business subsidies. The criteria must include a specific wage floor for wages to be paid and jobs created. The wage floor may be stated as a specific dollar value or may be stated as a formula that will generate a specific dollar amount. For example, full-time equivalent (FTE) employees of a business subsidy recipient shall paid wages excluding benefits of at least 110% of the federal poverty level for a family of four. A copy of the criteria must be submitted to DEED along with the first annual report after a grantor has adopted criteria.

Definition of Business Subsidy

Definition of Grantor

Definition of Recipient

Definition of Benefit Date

Establishing Public Purposes, Job Goals, and Reporting

Approval by Elected Officials

Failure to Fulfill Business Assistance Agreements

Financial Assistance with Separate Requirements

A 2008 amendment to Minn. Stat. 116J.993 to 116J.995 adjusted the level of what constitutes a business subsidy. The new threshold is $150,000 for either a grant or loan and raises the threshold for a public hearing requirement also to in excess of $150,000. However, report of public financial participation are still required for two year periods under the old threshold levels of between $25,000 to 150,000 in grants, and $75,000 to $150,000 in loans (see 116J.993, subdivision 3).

Definition of Financial Assistance

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