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Deed job creation fund
Deed job creation fund
Deed job creation fund
Deed job creation fund
Deed job creation fund
Deed job creation fund
Deed job creation fund
Deed job creation fund
Deed job creation fund
Deed job creation fund
Deed job creation fund
Deed job creation fund
Deed job creation fund
Deed job creation fund
Deed job creation fund
Deed job creation fund
Deed job creation fund
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Deed job creation fund

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Minnesota’s newest economic development tool providing performance-based incentives for new and expanding businesses.

Minnesota’s newest economic development tool providing performance-based incentives for new and expanding businesses.

Published in: Business, Economy & Finance
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  • 1. Minnesota Job Creation Fund Minnesota’s newest economic development tool providing performance-based incentives for new and expanding businesses
  • 2. Today we’ll discuss:  Program overview  Available Funds & Limits  Who is eligible  Application & Review Process  Awards, Agreements & Disbursements
  • 3. 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
  • 4. 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
  • 5. 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
  • 6. Eligibility & Application: Website Info
  • 7. Eligibility & Application: Website Info
  • 8. Eligibility & Application: Website Info
  • 9. Eligibility & Application: Website Info
  • 10. Eligibility & Application: Website Info
  • 11. Application Review: Scoring  Does project meet basic eligibility?  Review of economic factors:  Employment  Jobs & wages  Capital investment  Diversify or strengthen economy
  • 12.  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)
  • 13. 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
  • 14. 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
  • 15. 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
  • 16. Other Considerations  Job Listing agreement for projects receiving $200k or more  Prevailing wage applies for projects receiving $200k or more in funds
  • 17. 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

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