Deed job creation fund

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

Emily.A.Johnson@state.mn.us http://mn.gov/deed/business/financing