deed job creation fund
DESCRIPTION
Minnesota’s newest economic development tool providing performance-based incentives for new and expanding businesses.TRANSCRIPT
Minnesota Job Creation Fund
Minnesota’s newest economic development tool providing performance-based incentives
for new and expanding businesses
Today we’ll discuss: Program overview Available Funds & Limits Who is eligible Application & Review Process Awards, Agreements & Disbursements
Overview $24 million biennium allocation from legislature Program launched January, 2014 Met with 20+ groups throughout Minnesota Designed as strategic, transparent & accountable Pay-for-performance based incentive for business Remains a modest tool compared to other states
Available Funds Up to $1,000,000 in job creation awards and capital
investment rebates for most types of projects Up to $2,000,000 in job creation awards and capital
investment rebates for large projects Up to $1,000,000 in capital investment rebates for large
investment projects that retain jobs Funds available based on $1000-$3000 per job based on
wages paid and 5-7.5% rebate depending on project location
Eligibility & Application At minimum:
10 new full-time permanent jobs within two years $500k invested in real property improvements Support from local government Eligibility factors, eligibility & application checklist and
application at www.mn.gov/deed
Eligibility & Application: Website Info
Eligibility & Application: Website Info
Eligibility & Application: Website Info
Eligibility & Application: Website Info
Eligibility & Application: Website Info
Application Review: Scoring Does project meet basic eligibility? Review of economic factors:
Employment Jobs & wages Capital investment Diversify or strengthen economy
Review of Business Factors Product/industry outlook Business performance Sales outside MN or import substitution Financing commitment/ready to go
Other review factors: ROI Local government contribution
Application Review: Scoring (con’t)
Awarding a project Funding levels determined based on DEED’s scoring
and review “Designated” as a job creation fund business Project can begin after designation by DEED
For example, no construction, contracts, bid-letting, permits before designation
Business Subsidy Agreement (BSA) BSA signed between DEED & business BSA outlines two-year (and other) job creation, wage &
capital investment goals, funding levels, reporting requirements, etc.
Term of up to 5-7 years based on project specifics and location
Allows for funding disbursement when it makes sense to the business
How does a business get funds? Invest at least $500k within one year of designation Create at minimum 10 new full-time jobs within two
years of designation Hold jobs in place for a year Provide documentation and complete annual reports
& disbursement requests with assistance from local government
Other Considerations Job Listing agreement for projects receiving $200k or
more Prevailing wage applies for projects receiving $200k or
more in funds
Questions? Contact your Business Development Representative or,
Emily Johnson, Program Manager – Job Creation Fund 651-259-7450
[email protected] http://mn.gov/deed/business/financing